Home Equity Loan Calculator
A home equity loan lets you turn part of your home's equity into a fixed-rate lump sum, repaid in equal monthly installments — often called a second mortgage. This calculator first works out how much you can borrow under your lender's combined loan-to-value cap, then shows the monthly payment, the total interest, and the total you will repay over the term. The math is universal; switch the currency at the top of the page for your market.
- Principal
- Interest
- Monthly payment
- $1,698.59
- Total interest
- $63,830.36
- Total repaid
- $203,830.36
- Current equity
- $200,000.00
A home equity loan gives you the full 140,000 as a single lump sum at a fixed rate, with a level payment of about 1,699 every month for 120 months. Unlike a HELOC, the rate and payment never change — you trade the flexibility of a revolving line for the certainty of a fixed second mortgage.
How it works
The amount you can borrow is set the same way as a HELOC: take your home value, multiply by the lender's combined loan-to-value cap, and subtract your existing mortgage balance. The room that remains is the maximum a home equity loan can advance against the property.
Where a home equity loan differs is in how you receive and repay the money. Instead of a revolving line you draw on, you get the whole amount up front as a single lump sum. You then repay it on a fixed amortization schedule — the same equated payment every month, split between interest on the outstanding balance and repayment of principal. Early payments are mostly interest because the balance is large; later payments are mostly principal. Crucially, the rate is fixed, so the payment never changes regardless of what happens in the market.
That fixed structure is the main trade-off against a HELOC. A home equity loan gives you certainty — a known payment and a known payoff date — which suits a one-time, known expense like consolidating debt or funding a single large project. A HELOC gives you flexibility and pay-as-you-draw interest, but at a variable rate. This calculator models the fixed home equity loan; use the HELOC calculator for the revolving alternative.
Available to borrow = max(0, home value × max combined LTV ÷ 100 − mortgage balance). Monthly payment = A · i · (1 + i)^n / ((1 + i)^n − 1), where A = available amount, i = annual rate ÷ 12 ÷ 100, and n = years × 12.
Worked example
With a home worth 400,000, a mortgage balance of 200,000, and an 85% combined LTV cap, the maximum total debt allowed is 340,000, leaving 140,000 available to borrow. Take that 140,000 at 8% over 10 years (120 months) and the fixed monthly payment is about 1,698. Over the full term you repay roughly 203,800 in total, of which about 63,800 is interest. Your current equity going in is 200,000.
Things to watch out for
If your mortgage already meets or exceeds the LTV cap times the home value, there is nothing left to borrow and the calculator returns an error rather than a negative loan. A longer term lowers the monthly payment but increases total interest; a shorter term does the reverse. Because the loan is a second lien on your home, defaulting can put the property at risk — borrow only what the fixed payment comfortably fits in your budget.
Frequently asked questions
How is a home equity loan different from a HELOC?+
A home equity loan is a fixed-rate lump sum repaid on a set schedule — predictable payments and a fixed payoff date. A HELOC is a revolving, variable-rate credit line you draw on as needed. This calculator models the fixed lump-sum loan; the HELOC calculator covers the line of credit.
How much can I borrow?+
Multiply your home value by the lender's combined loan-to-value cap, then subtract your current mortgage balance. The remainder is the maximum a home equity loan can advance. The calculator shows this under "Available to borrow".
Does a longer term save me money?+
A longer term lowers each monthly payment but means you pay interest for more years, so the total interest rises. A shorter term costs more per month but less overall. Adjust the term to see the trade-off.
Is my home at risk?+
Yes — a home equity loan is secured against your property as a second lien. If you cannot keep up with payments, the lender can ultimately foreclose. Borrow conservatively and keep the fixed payment well within your budget.
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Disclaimer: This calculator is for educational and informational purposes only and provides estimates, not financial advice. Interest rates, taxes, fees, and local rules vary and change over time. Confirm figures with a qualified professional before making any financial decision.
Last reviewed: 2026-06-22