Home Equity Loan Calculator
See how much you can borrow against your home equity, your fixed monthly payment, and the total interest — a lump sum with a rate that never changes.
A home equity loan is a fixed-rate lump sum — borrow $100,000 at 8.7% over 15 years and your payment stays $997/mo for the whole term.
8.7%
est. fixed home equity loan APR — 30-yr mortgage rate + 2 pts via FRED (Q2 2026)
$175,000
most you could borrow on a $500,000 home with a $250,000 mortgage at 85% CLTV (Q2 2026)
$997
fixed payment to borrow $100,000 over 15 years at 8.7% (Q2 2026)
How a home equity loan works
A second mortgage that turns part of your equity into cash, repaid at a fixed rate.
Your equity sets the ceiling
Lenders typically let your first mortgage plus the home equity loan reach 85% of your home's value. On a $500,000 home with $250,000 owed, that's about $175,000 of borrowing room — your $250,000 of equity, minus the cushion lenders keep.
Fixed rate, fixed payment
A home equity loan locks your rate for the whole term. Your monthly payment never changes, so it's easy to budget and immune to rate hikes — the key advantage over a variable-rate HELOC.
The term is a big lever
A longer term lowers the monthly payment but piles on interest; a shorter term costs more each month but far less overall. The payment-by-term chart shows the trade-off so you can pick a comfortable middle ground.
How the Home Equity Loan Calculator Works
Formula
Available equity = Home value − Mortgage balance
Max loan = (Home value × 85%) − Mortgage balance
Combined LTV = (Mortgage balance + Loan) ÷ Home value
Monthly payment (fixed):
M = P · r / (1 − (1 + r)^−n)
P = loan amount, r = APR ÷ 12, n = term in monthsEnter your home value
Use a recent estimate or appraisal.
Enter your mortgage balance
What you still owe on the first mortgage.
Choose a loan amount
We flag it if it exceeds the 85% CLTV limit.
Set rate and term
Defaults to the live mortgage rate + 2 pts.
Review the fixed payment
Plus total interest and a term comparison.
A home equity loan converts part of your built-up equity into a one-time lump sum, secured by your house as a second mortgage. Because it's collateralized, rates are typically well below credit cards or personal loans — in this example about 8.7% (the live 30-year mortgage rate plus a 2-point spread, Q2 2026).
The defining feature is certainty: a fixed rate and a fixed payment for the entire term. If you want predictable budgeting and a known borrowing amount, a home equity loan usually beats a variable-rate HELOC. If you'd rather draw funds as needed over time, compare with the HELOC calculator instead.
Frequently Asked Questions
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