Home Equity Loan Calculator
Calculate how much you can borrow with a home equity loan. Estimate payments and understand your borrowing power based on home value.
A home equity loan allows you to borrow against the equity you've built in your home. This type of loan typically offers lower interest rates than unsecured loans because your home serves as collateral. Use this calculator to estimate your borrowing power and monthly payments.
Calculator
Common use cases
- Funding home renovations
- Consolidating high-interest debt
- Paying for education expenses
- Making large purchases
- Emergency fund access
How to use
- Enter your home's current market value
- Input your remaining mortgage balance
- Set the maximum loan-to-value ratio (typically 80%)
- Enter the expected interest rate
- Choose your desired loan term
- See your borrowing power and estimated payments
FAQ
What's the difference between a home equity loan and HELOC?
A home equity loan provides a lump sum with fixed payments, while a HELOC is a revolving credit line you can draw from as needed.
What is LTV?
Loan-to-Value (LTV) is the ratio of your total loans to your home's value. Lenders typically limit combined LTV to 80-85%.
Are home equity loan interest payments tax-deductible?
Interest may be deductible if the loan is used for home improvements. Consult a tax professional for your specific situation.
This calculator provides illustrative estimates for planning purposes only and does not constitute financial, tax, or legal advice.