Home Equity Loan Calculator
Enter a loan amount, term, and rate to see the fixed monthly payment on a home equity loan — plus the total interest, total repaid, and how much you could borrow against your equity. A home equity loan is a fixed-rate lump sum, so the payment below never changes.
Home Equity Loan Details
The lump sum you borrow, all at once.
Fixed schedule. Most run 5–20 years.
Fixed for the life of the loan.
Fixed Monthly Payment
$492
$50,000 at 8.5% over 15 years. The payment never changes.
Principal Borrowed
$50,000
The lump sum itself
Total Interest
$38,627
Over the full 15 years
Total Repaid
$88,627
Principal + interest
How Much Could You Borrow?
Lenders cap what you can borrow at a combined loan-to-value (CLTV) — your first mortgage plus the new loan, divided by the home's value.
Enter 0 if the home is paid off.
Maximum home equity loan at 85% CLTV
$200,000 in equity today · 85% of $500,000 minus your $300,000 balance.
$125,000
Home Equity Loan vs. HELOC vs. Cash-Out Refinance
All three let you borrow against the equity you've built, but they behave very differently once the money lands. A home equity loan and a HELOC are both second liens that sit behind your existing mortgage; a cash-out refinance replacesyour first mortgage with a bigger one. Here's how they line up:
| Home Equity Loan | HELOC | Cash-Out Refinance | |
|---|---|---|---|
| How you get the money | Lump sum at closing | Draw as needed over years | Lump sum at closing |
| Rate type | Fixed | Usually variable (Prime) | Usually fixed |
| Effect on 1st mortgage | Untouched | Untouched | Replaced at today's rate |
| Typical closing costs | Low (0–2%) | Low or none | Higher (2–5% of new loan) |
| Best when | You know the exact amount and want a fixed payment | Spending is phased or open-ended | Your current rate is at or above today's |
The rule of thumb: if you locked a low first-mortgage rate a few years ago, a cash-out refinance would throw that cheap rate away on the whole balance — a home equity loan or HELOC leaves it alone and only prices the new money. If your existing rate is already at or above current rates, folding everything into one refinanced loan can be simpler and cheaper. Weigh a line of credit against pulling cash out in the HELOC vs. cash-out refinance comparison.
How Rates Scale With Your Loan-to-Value
A home equity loan is a second lien, so pricing hinges on how much equity cushion sits behind it. The higher your combined loan-to-value (CLTV), the thinner that cushion and the higher the rate. The tiers below show the relative pricing pattern — the best rates go to borrowers who keep the combined balance low and carry strong credit. Treat the numbers as illustrative and replace them with live quotes:
| Combined LTV | Equity cushion | Relative rate | Availability |
|---|---|---|---|
| Up to 70% | 30%+ | Lowest — best pricing | Widely available |
| 70–80% | 20–30% | Slightly higher | Widely available |
| 80–85% | 15–20% | Higher — the common ceiling | Most lenders |
| 85–90% | 10–15% | Highest — priced for the risk | Strong credit only |
Beyond 90% CLTV, most lenders stop writing home equity loans entirely. If you're close to the limit, paying your first mortgage down even a little can drop you into a lower tier and a better rate — check your exact CLTV with the borrowing-limit tool above.
When a Home Equity Loan Is the Right Tool
The fixed lump sum makes a home equity loan the cleaner choice whenever you know the number up front and want certainty about the payment:
- A single, defined project.A roof, an addition with a fixed contract, or a one-time medical bill — you borrow exactly what it costs and never pay interest on money you didn't need.
- Debt consolidation with discipline.Rolling high-rate credit card balances into a fixed home-secured payment can slash the rate, and the set payoff schedule forces the balance down — but you've now put your house behind that debt.
- You want payment certainty.Unlike a variable HELOC, the payment can't rise if the Fed moves. That predictability is worth a lot on a large balance you'll carry for years.
If your spending will be phased or the total is still fuzzy, a revolving line usually fits better — size one with the HELOC calculator. And if you took a piggyback second at closing to skip mortgage insurance, the second mortgage calculator models the blended payment across both liens.
Recommended reading
Books on home equity & refinancing
Borrowing against your home is one of the larger financial decisions you can make — these guides cover the mechanics, the tradeoffs, and the negotiating points so you walk into the conversation with the lender prepared.
The Home Equity Loan Handbook
Practical guides on tapping home equity
Plain-English explanations of how home equity loans, HELOCs, and cash-out refinances actually work — and how to compare offers without getting steered.
Mortgages For Dummies
Eric Tyson & Ray Brown
Covers refinancing, second mortgages, HELOCs, and the math behind each — useful background before you sign anything.
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Frequently Asked Questions
How much can I borrow with a home equity loan?
Most lenders let your first mortgage and the new home equity loan together reach 80% to 90% of the home's value — a limit called combined loan-to-value (CLTV). To find your maximum, multiply the home's value by that CLTV cap and subtract your current mortgage balance. On a $500,000 home with a $300,000 mortgage and an 85% cap, that's ($500,000 × 0.85) − $300,000 = $125,000. Paying the first mortgage down, or a higher appraisal, opens up more room; a lower credit score or an investment (non-owner-occupied) property usually tightens the cap. The borrowing-limit tool in the calculator above does this math for your numbers.
What are current home equity loan rates?
Home equity loan rates move with the broader rate environment and have recently sat in the high-single-digit range — roughly 8% to 9% for well-qualified borrowers, higher for lower credit scores or higher combined LTVs. Because a home equity loan is a second lien (repaid only after your first mortgage in a foreclosure), it prices above a comparable first mortgage but usually below an unsecured personal loan or credit card. Rates are quoted fixed for the full term. Always pull live quotes from two or three lenders before you decide — the figure in the calculator is a placeholder you should replace with a real offer.
What is the difference between a home equity loan and a HELOC?
A home equity loan is a fixed-rate lump sum: you borrow a set amount once and repay it on a fixed schedule, exactly like the payment the calculator above shows. A HELOC (home equity line of credit) is a revolving, usually variable-rate line you draw from as needed during a multi-year draw period, paying interest only on what you've actually borrowed. Choose the home equity loan when you know the exact amount you need and want a payment that never changes; choose a HELOC for open-ended or phased spending where the total is uncertain. To size a line instead, use the HELOC calculator.
Is home equity loan interest tax deductible?
Under current federal rules, interest on a home equity loan is deductible only if you use the money to buy, build, or substantially improve the home that secures the loan, and only if you itemize deductions. Using the funds to consolidate credit card debt, pay tuition, or cover other expenses makes the interest non-deductible. Total mortgage debt eligible for the deduction is also capped. Tax situations vary, so confirm with a tax professional before counting on a deduction.
How is a home equity loan payment calculated?
It uses standard amortization — the same formula as a first mortgage. The monthly payment is fixed so that principal and interest fully retire the balance by the end of the term. Early payments are mostly interest and later payments are mostly principal, but the total stays constant each month. Because home equity loans are smaller and shorter than first mortgages, the payment is dominated by principal fairly quickly. There's normally no prepayment penalty, so extra payments shorten the term and cut total interest.