Home Equity Loan Calculator
Estimate how much you may be able to borrow, what the monthly payment could be, and how much interest the loan may cost.
- 2026 figures, checked October 26, 2026
- Private: runs in your browser
- How we check our work
Result
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Verify before you act: review these results with a licensed loan officer, real estate attorney or HUD-approved housing counselor before making any decision based on them.
Suggestions for your numbers
Updated as you type, from your inputs only. General information, not personal advice; confirm any change with a qualified professional.
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What is a home equity loan calculator?
A home equity loan calculator estimates how much you may be able to borrow using your home as collateral. It compares your home value with the mortgage balance you still owe and the maximum combined loan-to-value ratio, or CLTV, you enter.
Your home equity is the difference between your home’s value and the mortgage balance. CLTV compares all loans secured by the home with its value. The calculator estimates your borrowing limit by multiplying the home value by your maximum CLTV and subtracting your existing mortgage balance. This is the core calculation behind a home equity calculator and a second mortgage calculator.
Why a home equity loan estimate matters
The estimate can help you decide whether borrowing against your home fits your plans and budget. You might compare the amount available with a planned renovation, debt payoff, or other large expense before contacting a lender. Your home secures the loan, so falling behind on payments can put the home at risk.
A borrowing limit is not a loan approval or a promise that a lender will offer that amount. Lenders set their own CLTV limits and review factors such as your credit, income, property, and existing debts. The rate and fees you are offered may also differ from the values you enter. Use the estimate to prepare for lender conversations, not as a guarantee.
How to use this home equity loan calculator
- Enter the current estimated value of your home. Use a realistic value supported by recent information about your property, not an optimistic guess.
- Enter the mortgage balance you still owe. If you have other loans secured by the home, check how the lender treats them when setting its CLTV limit.
- Enter the maximum combined LTV as a percentage. The sample uses 85%. Your lender may allow a different limit.
- Enter the amount you want to borrow. Enter 0 to see the maximum estimated borrowing limit under the values you supplied.
- Enter the annual interest rate and loan term in years. If you are comparing lender offers, use each offer’s rate and term so the payment estimates are comparable.
Home equity loan calculator example
Worked example
With a home value of $450,000, a mortgage balance of $250,000, and a maximum combined LTV of 85%, the estimated borrowing limit is $132,500: $450,000 multiplied by 85%, minus $250,000. If you choose to borrow $40,000 at 8% for 15 years, the sample result is a monthly payment of $382.26 and total interest of $28,807. The borrowing limit is not the same as the loan amount you choose.
How to read your home equity loan results
You could borrow up to is the calculator’s estimated limit based on your home value, mortgage balance, and CLTV input. Current equity is the home value minus the mortgage owed. Borrowing limit at the selected CLTV reflects the formula: value multiplied by CLTV, minus balance owed.
Loan amount is the amount you entered or the maximum amount when you enter 0. Monthly payment estimates the regular payment for that loan amount, rate, and term. Total interest estimates the interest across the loan term. The calculator does not show lender approval or, unless you enter them in the available inputs, lender fees or other costs. Confirm the full payment and costs with the lender before you commit.
How to improve your borrowing plan
- 01
Check your home value and mortgage balance
Use a current, supportable home value and check your latest mortgage statement for the balance. Correct inputs make the estimate more useful. Ask a lender how it will value the property and count any other home-secured debt.
- 02
Borrow only what your plan requires
A higher limit does not mean you need to use it. Match the loan amount to a clear purpose, and compare the payment with your household budget before borrowing. If the payment feels tight, test a smaller loan amount.
- 03
Compare lender offers
Ask lenders for the rate, term, fees, payment, and total borrowing cost. Enter each offer’s rate and term to compare payment estimates. Consider asking whether a lower rate or different term is available.
- 04
Compare shorter and longer terms
A shorter term generally means a higher monthly payment and less time paying interest; a longer term generally spreads payments over more time. Use the calculator to see how the payment and estimated total interest change, then decide what fits your budget and payoff plans.
Common home equity loan calculator mistakes
Treating the maximum as an offer
The borrowing limit is a calculation from your inputs, not a lender’s approval. Underwriting, property valuation, and lender rules can change the amount you can actually borrow.
Using the wrong balance or value
An old mortgage balance or an unrealistic home value can distort the result. Check your current statement and use a defensible estimate of the property’s value.
Looking only at the monthly payment
A payment that fits your budget can still come with substantial interest or fees. Compare the term and total cost as well as the monthly amount.
Assuming every home equity product works the same way
A home equity loan typically provides a set loan amount with scheduled payments. A home equity line of credit works differently. Ask the lender about the product’s payment terms, rate changes, and fees.
The home equity loan formula
Borrowing limit = value x CLTV - balance owed.
Key terms
- Home equity
- The difference between your home’s value and the mortgage balance you owe.
- Combined loan-to-value ratio (CLTV)
- The share of your home’s value represented by loans secured by the property.
- Borrowing limit
- The estimated amount available after applying the selected CLTV to the home value and subtracting the mortgage balance.
- Second mortgage
- A loan secured by your home in addition to your existing mortgage.
Home equity loan questions
Does the calculator guarantee that I can get the loan amount shown?
No. It estimates a borrowing limit from the values you enter. A lender makes its own decision after reviewing the property, your finances, and its lending rules.
Does the monthly payment include closing costs?
The result estimates the payment using the loan amount, rate, and term. It does not include fees or other costs unless the calculator specifically asks for them. Request a full cost estimate from the lender.
How is a home equity loan different from a home equity line of credit?
A home equity loan is generally a lump-sum loan with scheduled payments. A home equity line of credit lets you borrow as needed under its terms. Confirm the details of each product with the lender before comparing them.
Before you act on this result. Cordwell calculators and guides are educational estimates, not legal, tax, investment, lending or other professional advice. They rely on the numbers you enter and on simplified rules, and they can't see your full situation. Before you file, sign, borrow, invest, hire, change your withholding or form a business based on anything here, meet with a licensed loan officer, real estate attorney or HUD-approved housing counselor who can review your specific facts and confirm the numbers. Rules change, and official agency guidance always controls.