Home Equity Loan Calculator
Find the equity you can borrow against your home and the monthly payment it takes to repay — enter your home value, mortgage balance, rate and term.
What is a home equity loan calculator?
A home equity loan calculator tells you how much you can borrow against your home and what it would cost to repay it. Home equity is the portion of your home you own — the current market value minus the outstanding mortgage balance. As you pay down the mortgage or as your home appreciates, your equity grows. This free calculator takes four inputs: home value, mortgage balance, annual rate and term, then returns your available equity, loan-to-value ratio and the monthly payment. It also shows your loan-to-value ratio before you apply.
The monthly payment uses the standard amortizing formula, spreading principal and interest evenly across the term. The display uses $ for the example, but the estimate is currency-agnostic and runs entirely in your browser. Note that lenders often limit borrowing to around 80% of a home's value, so you may not be able to access all of your equity.
How to use
- Enter the current market value of your home.
- Enter the outstanding balance on your mortgage.
- Set the annual interest rate and the repayment term in years.
- Click Calculate equity to see available equity and the monthly payment.
How home equity is calculated
Available equity = Home value − Mortgage balance Monthly payment = P × (r/12) ÷ [1 − (1 + r/12)^(−n)]
Loan-to-value ratio is the balance divided by the home value. The payment formula then spreads the loan amount P over n months at an annual rate r, including both principal and interest.
Example
With the defaults — a $400,000 home, $250,000 mortgage balance, 6% rate and a 15-year term — click Calculate equity. Your available equity is $150,000, your loan-to-value ratio is 62.50%, and the monthly payment is $1,265.79. Over the term you will pay about $77,841 in interest. Since lenders often cap borrowing near 80% of the home value, you may only be able to access part of your equity.
Common use cases
- Fund a renovation: borrow against your equity to pay for home improvements.
- Consolidate debt: use a home equity loan to pay off higher-interest balances.
- Cover a big expense: finance education, medical costs or other large purchases.
- Check your options: compare a home equity loan against a HELOC or refinance.
Pro tips
- Lenders cap at ~80% LTV: your maximum combined loan-to-value usually limits how much equity you can borrow.
- Compare a HELOC: a home equity loan is fixed and lump-sum, while a HELOC is a variable-rate line of credit.
- Watch the payment: a longer term lowers the monthly payment but increases the total interest paid.
- Consider fees and taxes: closing costs and the tax treatment of the interest can change the real cost.
FAQ
What is home equity?
Home equity is the portion of your home you own outright, equal to the current market value minus the outstanding mortgage balance.
What is a home equity loan?
A home equity loan lets you borrow a lump sum against your available equity at a fixed interest rate, repaid over a set term.
How is available equity calculated?
Available equity equals the home value minus the remaining mortgage balance. With a $400,000 house and $250,000 owed, you have $150,000 of equity.
How do I calculate the monthly payment?
Use the amortization formula: Payment = P × (r/12) ÷ (1 − (1 + r/12)^(−n)), where P is the loan, r the annual rate and n the number of monthly payments.
What is loan-to-value (LTV) ratio?
LTV is the mortgage balance divided by the home value, expressed as a percentage. It is a key measure of how much of the home is still financed.
How much equity can I borrow?
Lenders usually cap borrowing at roughly 80% of the home's value, so you may not be able to use all of your equity at once.
What is the difference between a home equity loan and a HELOC?
A home equity loan pays a one-time lump sum at a fixed rate, while a HELOC is a revolving credit line with a variable rate you draw on as needed.
Is home equity loan interest tax-deductible?
In some cases, such as the US, mortgage interest on home equity debt may be deductible under certain limits. Check your local tax rules.
Is this home equity calculator free and private?
Yes. It runs entirely in your browser and nothing is uploaded to any server.
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