Home Equity Loan Calculator
Calculate home equity loan payments, total interest and remaining equity with a year-by-year amortization schedule and max loan from your LTV limit.
As a % of the loan amount, rolled into the loan.
Monthly payment
$556.21
Equity after loan
$220,000
Combined LTV: 45%
Total payment
$100,117
Total interest
$40,117
Max loan available
$200,000
At a 80% LTV limit
Lenders usually cap combined loan-to-value around 80–85%. If your combined LTV is above that, you may need a smaller loan.
Year-by-year amortization
| Year | Interest | Principal | Ending balance |
|---|---|---|---|
| 1 | $4,424 | $2,251 | $57,749 |
| 2 | $4,249 | $2,426 | $55,324 |
| 3 | $4,061 | $2,614 | $52,710 |
| 4 | $3,858 | $2,817 | $49,893 |
| 5 | $3,639 | $3,035 | $46,858 |
| 6 | $3,403 | $3,271 | $43,586 |
| 7 | $3,149 | $3,525 | $40,061 |
| 8 | $2,876 | $3,799 | $36,263 |
| 9 | $2,581 | $4,094 | $32,169 |
| 10 | $2,263 | $4,411 | $27,758 |
| 11 | $1,921 | $4,754 | $23,004 |
| 12 | $1,552 | $5,123 | $17,881 |
| 13 | $1,154 | $5,521 | $12,360 |
| 14 | $725 | $5,949 | $6,411 |
| 15 | $263 | $6,411 | $0 |
How it works
Available equity = home value × 85% − current balance. Payment uses the amortising formula over the chosen term.
Example: $400,000 home, $150,000 owed → up to $190,000; $50,000 at 8% for 15 years → $478/month.
Last updated: April 2026
How this calculator is verified
Checked by True Calculator automated test suite on
- Formula verified against a published worked example in the automated test suite
- Edge cases (zero, negative, boundary and unit-mismatch inputs) covered by unit tests
The full verification method is on our how we verify page. Found an error? Tell us and we will re-check it.
When to Use This Calculator
A home equity loan lets homeowners borrow against the part of their property they already own, using the difference between the current market value and the outstanding mortgage balance. This calculator works out the monthly repayment, the total interest and the equity that remains, and it shows the maximum you could borrow under a lender's loan-to-value limit. Homeowners use it when planning renovations, consolidating higher-interest debt or funding a major expense — and the results make it clear why home-equity rates, which sit below unsecured personal-loan rates, can be the cheaper route despite using the home as security.
How to Use This Calculator
- Step 1: Enter the current market value of your home and the balance still owed on the first mortgage.
- Step 2: Enter the home equity loan amount you plan to borrow, the interest rate and the term in years.
- Step 3: Optionally add closing costs as a percentage of the loan to roll them into the amount borrowed, and pick your lender's loan-to-value limit.
- Step 4: Read the monthly payment, total interest, remaining equity and max loan available, and check the year-by-year amortization table.
Worked Example
A homeowner has a house worth $500,000 with a $230,000 mortgage balance. Borrowing $150,000 at 8% for 15 years gives a monthly payment of $1,433.48, total interest of $108,026.06 over 180 payments, and $120,000 of equity remaining after the loan. At an 80% loan-to-value limit the maximum loan available is 500000 × 80% − 230000 = $170,000, so the request is within reach. The amortization table shows the balance drops to about $144,603 after the first year, and the equity after borrowing is the home value minus all loans.
Tips and Common Mistakes
- •Tip 1: Lenders usually cap total borrowing at 80 to 85 percent of home value, so check the remaining-equity figure and combined LTV against that limit.
- •Tip 2: A home equity loan is a second mortgage, so it is secured by the home and defaulting can put the property at risk.
- •Tip 3: Compare the fixed rate here with a HELOC's variable rate, since the stability of a fixed payment may be worth a slightly higher rate.
- ✗Mistake 1: Entering your purchase price instead of the current market value, which can make your equity look larger or smaller than it is.
- ✗Mistake 2: Forgetting the first mortgage balance, which overstates the equity you actually keep after the new loan.
Frequently Asked Questions
What is a home equity loan?
It is a second mortgage that lets you borrow a lump sum against your home's equity — the market value minus what you still owe — repaid in fixed monthly installments over a set term.
How much can I borrow with a home equity loan?
Lenders generally allow you to borrow up to 80–85% of your home's value combined across all loans. Your maximum is (value × 85%) − current mortgage balance.
How does a home equity loan differ from a HELOC?
A home equity loan gives you a fixed lump sum with a fixed rate and fixed payments. A HELOC is a revolving credit line with a variable rate that you draw from as needed.
Is this home equity loan calculator free to use?
Yes, True Calculator's home equity loan calculator is completely free with no sign-up, no app install and no usage limits.
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