Home Equity Loan Calculator
Calculate monthly payments and total cost for a fixed-rate home equity loan. See how much equity you can access.
How to Use This Home Equity Loan Calculator
Enter your Home Value and Mortgage Balance to see how much equity you have available. Enter the Loan Amount Needed — the calculator will warn you if it exceeds the typical 90% combined LTV limit. Choose your Interest Rate and Loan Term to see your fixed monthly payment and full cost breakdown.
Understanding Available Equity
The calculator shows two figures: equity at 80% CLTV (the most commonly approved limit for the best rates) and the absolute maximum at 90% CLTV. Borrowing above 80% typically requires a higher rate or lender approval with strong credit.
Home Equity Loan Formula
Where:
P = Loan Amount
r = Monthly interest rate (annual rate ÷ 12)
n = Term in months (years × 12)
Available Equity (80% CLTV) = (Home Value × 0.80) − Mortgage Balance
Max Loan (90% CLTV) = (Home Value × 0.90) − Mortgage Balance
Example: $400,000 home, $250,000 mortgage, $50,000 loan at 7.5% for 10 years. Monthly payment = $50,000 × [0.00625 × (1.00625)^120] / [(1.00625)^120 − 1] = $594/month. Total interest paid = $594 × 120 − $50,000 = $21,280.
Example: Debt Consolidation with a Home Equity Loan
Mark's Debt Consolidation Strategy
Mark has $45,000 in high-interest credit card debt at 22% APR. His home is worth $380,000 with a $210,000 mortgage balance.
| Available Equity (80% CLTV) | $94,000 |
| Home Equity Loan Amount | $45,000 |
| Home Equity Loan Rate | 7.5% fixed |
| Term | 10 years |
| Monthly Payment | $534/month |
| Credit Card Monthly (min) | $1,350/month |
| Monthly Cash Flow Saved | $816/month |
| Total Interest (home equity) | $19,080 |
| Total Interest (credit cards) | ~$48,000+ |
By consolidating, Mark saves approximately $29,000 in interest and frees up $816/month. The risk: his debt is now secured by his home. If he runs up credit cards again, he'll be in a worse position.