Home Equity Loan Calculator
Calculate how much you can borrow against your home equity and the monthly payment.
This home equity loan calculator - or equity loan calculator - estimates how much you can borrow against your home's equity, based on your home's market value, your remaining mortgage balance, and a lender's maximum loan-to-value (LTV) ratio. It also acts as a home equity payment calculator or home equity loans calculator once you enter a loan amount, rate, and term.
Enter your home value, mortgage balance, and desired term, and the calculator estimates your available equity and monthly payment.
Worked Calculation Examples
| Scenario | Result | Calculation Step |
|---|---|---|
| $400,000 home, 85% max LTV, $220,000 mortgage balance | $120,000 available equity | Maximum combined loan = $400,000 × 0.85 = $340,000. Available equity = $340,000 − $220,000 = $120,000. |
| $250,000 home, 80% max LTV, $190,000 mortgage balance | $10,000 available equity | Maximum combined loan = $250,000 × 0.80 = $200,000. Available equity = $200,000 − $190,000 = $10,000 - a thin-equity example showing how a high existing mortgage balance limits borrowing room even on a valuable home. |
How Much You Can Borrow
Lenders typically cap total borrowing (existing mortgage plus new equity loan) at 80-85% of your home's value. Subtract your current mortgage balance from that maximum combined loan amount to find how much home equity you can actually borrow.
Home Equity Loan vs. HELOC
A home equity loan disburses a lump sum with a fixed rate and fixed monthly payment, similar to a second mortgage. A HELOC (home equity line of credit) instead gives you a revolving credit line you draw from as needed, typically with a variable rate - the right choice depends on whether you need one lump sum or ongoing access to funds.
How to Use the Home Equity Loan Calculator
- Open the Home Equity Loan Calculator and enter the values requested in the input fields.
- Check the units, percentages, dates, or time periods before reading the answer.
- Review the instant result and adjust any value to compare another scenario.
- Use the formula, example, and FAQs below to understand how the home equity loan calculator works.
Frequently Asked Questions
How much can I borrow with a home equity loan?
Multiply your home's value by your lender's maximum combined loan-to-value ratio (commonly 80-85%), then subtract your current mortgage balance to find your available equity loan amount.
How is a home equity loan payment calculated?
It uses the same fixed-rate amortization formula as any other installment loan, based on the loan amount, interest rate, and repayment term you choose.
What's the difference between a home equity loan and a HELOC?
A home equity loan gives you one lump sum with a fixed rate and payment. A HELOC gives you a revolving credit line with typically variable rates that you draw from as needed.
How do I use this home equity loan calculator?
Enter the known values, review the units or settings, and the calculator updates the result instantly. The formula and example on this page show how the answer is produced.
What does the Home Equity Loan Calculator calculate?
Calculate how much you can borrow against your home equity and the monthly payment. It is designed for fast browser-based calculations without sign-up, downloads, or manual spreadsheet setup.
What formula does this home equity loan use?
The formula is: Available Equity = (Home Value × Max LTV%) − Current Mortgage Balance. Loan-to-value (LTV) limits became standard lending practice after the savings-and-loan crisis of the 1980s and were later reinforced by post-2008 financial regulation, both episodes in which lenders had extended credit against home equity that turned out to be overvalued. Capping combined LTV at 80-85% builds in a buffer against home price declines, ensuring the lender's total exposure stays below the home's value even if prices drop somewhat before the loan is repaid.
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Last updated: September 27, 2026.