Home Equity Loan Calculator

Estimate available equity, CLTV, monthly payment, and total interest on a home equity loan.

Formula & Methodology

Available equity = home value × max CLTV − current mortgage balance; monthly payment M = P × [r(1+r)^n] / [(1+r)^n − 1].

Worked Example

A $400,000 home at 85% CLTV minus a $250,000 mortgage allows up to $90,000; a $50,000 10-year loan at 8.5% costs about $620/month.

Frequently Asked Questions

What is a home equity loan?

A fixed-rate, lump-sum loan secured by your home equity, repaid in equal monthly payments over a set term, separate from your first mortgage.

How much can I borrow?

Lenders cap the combined loan-to-value (first mortgage plus equity loan) at typically 80–85% of the home's appraised value.

How does it differ from a HELOC?

A home equity loan gives a lump sum at a fixed rate; a HELOC is a revolving line with a variable rate. This calculator models the lump-sum loan.

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