Home Equity Loan Calculator
Work out the monthly payment, total interest, and how much of your equity you'd be tapping for a Home Equity Loan (HEL) or HELOC — combined loan-to-value check and full amortization schedule included.
HOME EQUITY LOAN
Fixed Rate, Lump Sum
HELOC
Variable Rate, Revolving
PROPERTY & EQUITY
✓ CLTV 67.5% — within 80% limit. Available: $100,000
LOAN DETAILS
Monthly Payment
$620
Fixed · 10 years · 8.5% APR
- Loan Amount
- $50,000
- Total Interest
- $24,391
- Total Cost
- $75,891
Home Equity Breakdown
- Mortgage $220,000
- Borrowed $50,000
- Available Equity $50,000
- Equity $80,000
Combined LTV
67.5%
Monthly Payment
$620
Total Interest
$24,391
Avail. Equity
$50,000
Home Equity
$180,000
CLTV Ratio
67.5%
Closing + Interest
$25,891
Balance Over Time
| Year | Principal | Interest | Balance |
|---|---|---|---|
| Year 1 | $3,316 | $4,123 | $46,684 |
| Year 2 | $3,610 | $3,830 | $43,074 |
| Year 3 | $3,929 | $3,511 | $39,146 |
| Year 4 | $4,276 | $3,163 | $34,870 |
| Year 5 | $4,654 | $2,785 | $30,216 |
| Year 6 | $5,065 | $2,374 | $25,151 |
| Year 7 | $5,513 | $1,926 | $19,638 |
| Year 8 | $6,000 | $1,439 | $13,638 |
| Year 9 | $6,530 | $909 | $7,108 |
| Year 10 | $7,108 | $331 | $0 |
Related Finance Calculators
What Is a Home Equity Loan?
A home equity loan lets you borrow a lump sum against the portion of your home you already own outright — the gap between what it's worth today and what's left on your mortgage. It functions as a second loan on the property: you get the cash upfront and repay it on a fixed schedule at a fixed rate, which our amortization calculator can also break down month by month once you know your terms.
How Available Equity Is Calculated
Example: a $400,000 home with a $220,000 mortgage has $180,000 in equity, but the maximum a typical lender lets you borrow is (400,000 × 0.80) − 220,000 = $100,000 — well short of the full equity figure.
That 80% ceiling is your combined loan-to-value (CLTV) ratio: every loan secured by the home, divided by its value. Some lenders stretch to 85–90% for well-qualified borrowers, but pricing usually gets worse the closer you get to the limit. Our loan calculator is a useful side-by-side if you're weighing an unsecured personal loan instead.
Home Equity Loan vs HELOC — Key Differences
🏠 Home Equity Loan (HEL)
- Fixed interest rate — predictable payments
- Lump sum disbursed at closing
- Fixed repayment term (5–30 years)
- Fully amortizing from day one
- Closing costs typically 2–5% of loan
- Best for one-time, known expenses
💳 HELOC (Home Equity Line of Credit)
- Variable interest rate — payments fluctuate
- Revolving credit line — draw as needed
- Draw period (5–10yr) + repayment period (10–20yr)
- Interest-only payments during the draw period
- Best for ongoing or uncertain expenses
- Model this version on the HELOC Calculator
Common Uses for Home Equity Borrowing
Home Renovation
Kitchen, bathroom, or addition projects that also tend to add resale value.
Debt Consolidation
Rolling higher-rate balances into one lower, fixed payment — compare against our loan calculator first.
Education Expenses
Covering tuition or fees with a rate typically well below private student loans.
Medical / Emergency
Financing an unplanned large expense at a lower rate than most credit cards charge.
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