Your home equity — the difference between what your home is worth and what you owe — is likely your largest financial asset. On a $500K home with $300K remaining on the mortgage, you have $200K in equity. Most lenders let you borrow up to 80-85% of your equity, so roughly $160K-$170K. Home equity loans offer lower rates than personal loans or credit cards because your home serves as collateral, with current rates typically 7-9%. This calculator shows your available equity, monthly payment, and total interest cost for any home equity loan or HELOC scenario.
Home Equity Loan Calculator
Calculate monthly payments, total interest, and payoff schedule.
Home Equity Loan Calculator Comparison
Monthly payments at various rates
| Rate | Monthly Payment | Total Interest | Total Paid |
|---|---|---|---|
| 5% | $395 | $21,171 | $71,171 |
| 5.5% | $409 | $23,538 | $73,538 |
| 6% | $422 | $25,947 | $75,947 |
| 6.5% | $436 | $28,400 | $78,400 |
| 7% | $449 | $30,895 | $80,895 |
| 7.5% | $464 | $33,431 | $83,431 |
How to Use This Calculator
- Enter your home's current market value — check recent comparable sales or Zillow for an estimate
- Enter your remaining mortgage balance
- View your total equity and maximum borrowable amount at 80% LTV
- Set the loan amount, interest rate, and term for payment calculations
- Compare lump-sum home equity loan vs HELOC revolving line to see which fits your needs
How It Works
This calculator uses the standard amortization formula to compute your home equity loan calculator payment.
The basic rule:
- Monthly Payment = P × [r(1+r)^n] / [(1+r)^n – 1]
- r = annual interest rate ÷ 12
- n = loan term × 12 (total monthly payments)
- Total Interest = (Monthly Payment × n) – Principal
Results are estimates. Actual payments may vary based on fees, insurance, and other factors.
Tips & Considerations
- Home equity loan interest is tax-deductible only if the funds are used for home improvements. Using the money for debt consolidation or other purposes eliminates the tax benefit.
- A HELOC has variable rates that can increase significantly over time. If rates rise 2%, your payment on a $100K balance increases by about $167/month.
- You are putting your home at risk. If you cannot make payments on a home equity loan, the lender can foreclose — even if your primary mortgage is current.
- Home equity loans make most sense for large, planned expenses like major renovations that increase your home value. Using equity for lifestyle expenses or consumables is risky.
Frequently Asked Questions
What is the difference between a HELOC and home equity loan?
A home equity loan gives you a lump sum at a fixed rate. A HELOC is a revolving credit line with a variable rate. HELOCs offer flexibility; home equity loans offer payment predictability.
How much equity can I borrow against?
Most lenders allow borrowing up to 80-85% of your home equity. If your home is worth 400K and you owe 250K, your equity is 150K, and you could borrow up to roughly 120K.
Is home equity loan interest tax deductible?
Interest may be deductible if the funds are used for home improvements. Interest on funds used for other purposes (debt consolidation, vacations) is generally not deductible. Consult a tax professional.