🏦 Home Equity Loan Calculator
Most lenders let you borrow against your home up to 80% of its value minus what you still owe on the mortgage. This calculator applies that rule to your home value and balance, then prices the resulting second loan as a fixed monthly payment.
A home equity loan puts your house up as collateral, so borrow only what the budget can repay. Rates here are fixed; for a variable credit line see the HELOC calculator.
How to use this calculator
Enter your home value, remaining mortgage balance, the rate and term to find the maximum equity you can borrow and the monthly payment.
- Type your Current home value.
- Enter the Remaining mortgage balance.
- Set the Annual interest rate and Loan term.
- Press Calculate to see the available equity and payment.
Frequently asked questions
How much equity can I borrow?
Most lenders cap total borrowing at 80% of the home value. Available equity is 80% of the value minus your current mortgage balance.
How is the payment calculated?
The available equity is treated as a fixed-rate second mortgage and amortized over the chosen term with equal monthly payments.
Can you walk through an example?
A $400,000 home with a $220,000 balance leaves $100,000 borrowable at the 80% rule. At 8% over 15 years the payment is about $955.65 a month.
What is the risk?
Your home secures the loan, so missed payments can lead to foreclosure. Borrow only what the monthly budget can comfortably repay.