Home Equity Loan Calculator

Most lenders cap combined loan-to-value (CLTV) around 80–85%. The working formula is: Borrowing power = (Home value × CLTV%) − Current mortgage balance. You rarely borrow 100% of your equity — lenders want a cushion if prices fall.

Example: Home worth $400,000, mortgage balance $250,000, 85% CLTV → max total liens = $340,000 → available to borrow ≈ $90,000. At 80% CLTV the same home yields ≈ $70,000. Change the inputs above to match your appraisal and statement.

Credit score, debt-to-income (often ≤43%), income documentation, and appraisal still decide final approval. Step-by-step guide: How much home equity can I borrow?.

A home equity loan pays a lump sum at a fixed rate with predictable payments — like a second mortgage. Best when you know the exact cost (roof, kitchen, debt consolidation amount).

A HELOC works like a credit card secured by your house: draw what you need during a draw period (often ~10 years), usually at a variable rate, then repay. Best for phased renovations or a standby emergency line — but variable rates can rise.

Quick compare: Loan = fixed payment certainty. HELOC = flexibility + rate risk. Deep dive: HELOC vs home equity loan. Also model a cash-out refinance if replacing your first mortgage is cleaner than a second lien.

Payment depends on amount, rate, and term. Rough illustration: $100,000 at 8% for 30 years ≈ $734/month; $75,000 at 7.5% for 15 years ≈ $695/month. Closing costs often run 2–5% of the loan (appraisal, title, origination) and may be rolled into the balance.

Rates are usually lower than credit cards or unsecured personal loans because your home is collateral — that is also the risk. Miss payments and the lender can foreclose. Use this calculator’s total cost figure, then shop at least three lenders the same week.

If consolidating card debt, confirm the new payment and payoff timeline beat your current debt payoff plan. Never borrow equity for vacations or depreciating purchases you cannot repay.

Typical lender expectations: ~15–20%+ equity remaining after the loan, credit scores often 640–680+, manageable DTI, and clean recent payment history. Stronger credit and lower LTV usually win better rates.

Pros: lower rates than unsecured debt, fixed payments (loan), long terms, possible tax deductibility if used to improve the home (confirm with a tax professional; see IRS Publication 936 concepts). Cons: foreclosure risk, fees, longer debt timeline, HELOC payment shock if rates rise.

Alternatives: personal loan (no home at risk), cash-out refinance, or delaying the project until you save more cash. Compare offers with our loan comparison calculator and mortgage calculator.

Enter home value, mortgage balance, desired loan amount, loan vs HELOC, rate, term, and closing costs. Instant results show estimated payment, available equity, LTV, and total cost. Toggle HELOC to see interest-only draw-period estimates when applicable.

Next: verify your home value (AVM or appraisal), pull a mortgage statement, check your credit, then request quotes from your current mortgage servicer plus two competitors. Read the CFPB home equity explainer before you sign.