Free home equity loan calculator
Calculate home equity loan monthly payments and total interest — enter equity available, loan amount, rate, and term, updated live, as you type.
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Your home is collateral. Consult a licensed lender and tax advisor before borrowing against home equity.
Results are estimates. Consult a professional.
How the home equity loan calculator works
A home equity loan (HELOAN) is a fixed-rate, fixed-term second mortgage. You borrow a lump sum against the equity in your home and repay it in equal monthly installments over the loan term. Unlike a HELOC, the rate never changes and the payment is predictable from day one.
The combined loan-to-value ratio (CLTV) is the key underwriting number: first mortgage + HELOAN balance divided by the home's appraised value. Keep CLTV at or below 80% and you will qualify with most lenders at competitive rates.
CFPB — What you should know about home equity loans and home equity lines of credit.Worked example: $100k HELOAN at 8.5% over 15 years
Your home is appraised at $500,000. Your first mortgage balance is $300,000. At 80% LTV the lender will advance up to $400,000 in total debt. Subtracting the first mortgage leaves $100,000 of available equity. You borrow the full $100,000 at 8.5% for 15 years.
Monthly payments by loan amount and rate (15-year term)
The table shows estimated monthly payments for four common home equity loan amounts at three rates over a 15-year term — the most popular HELOAN term. Shorter terms lower total interest; longer terms lower the monthly payment.
| Loan Amount | 7.5% / 15 yr | 8.5% / 15 yr | 9.5% / 15 yr |
|---|---|---|---|
| $50,000 | $464/mo | $492/mo | $522/mo |
| $75,000 | $695/mo | $739/mo | $783/mo |
| $100,000 | $927/mo | $985/mo | $1,044/mo |
| $150,000 | $1,390/mo | $1,478/mo | $1,566/mo |
Source: CFPB home equity guide. Payments are principal + interest only; does not include taxes or insurance. Use the calculator above for 10-year or 20-year terms.
Tips for using a home equity loan wisely
A home equity loan is one of the cheapest forms of consumer borrowing — but the collateral is your house. These five habits keep the risk in proportion to the benefit.
- Use it for value-adding projects. Home improvements, debt consolidation of high-rate balances, and education are the strongest use cases. Spending equity on recurring expenses or vacations means you have borrowed against future home value with no lasting payoff.
- Compare the 10, 15, and 20-year terms. A 10-year term costs less total interest but raises the monthly payment sharply. Run all three in the calculator and pick the term whose payment fits your budget without being reckless on cost.
- Lock the rate before the Fed moves. Home equity loan rates are fixed — if rates are trending up, locking now is cheaper than waiting. If rates are trending down, consider a HELOC to benefit from future reductions.
- Check the CLTV before you apply. If your home has lost value since purchase, your available equity may be much smaller than you expect. Order a comparative market analysis before applying to avoid a declined appraisal.
- Factor in the closing costs. HELOANs typically carry $500–$2,000 in closing costs. For small loan amounts these fees are proportionally large — below $20,000, a personal loan or 0% APR credit card may be cheaper after fees.
Accuracy and limitations
This calculator computes a standard amortizing payment assuming the stated rate is fixed for the full term and no additional principal payments are made. Actual lender rates depend on your credit score, CLTV, and the prevailing rate environment. The 80% CLTV cap used to estimate available equity is a common lender guideline — your lender may use a different limit. Appraisal values can come in below your expectation, reducing the borrowable equity.
Not financial or tax advice — consult a qualified professional for your situation.
Home equity loan terms defined
About this home equity loan calculator
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