Home Equity Loan Calculator
A home equity loan or HELOC lets you borrow against the value of your home, up to a limit set by the lender. Enter your home value, mortgage balance and a draw amount to see how much equity you can access and what the payment would be.
Home Equity Loan Calculator
How this calculator works
Home equity is the difference between what your home is worth and what you owe on it. Lenders express their limit as a combined loan-to-value ratio: the total of your mortgage plus the new home equity loan, divided by the home's value. If a lender allows 85% combined LTV on a 400,000 home with a 220,000 mortgage, the maximum additional borrowing is 120,000.
A home equity loan is a fixed-rate lump sum repaid in equal instalments, so the payment comes from the standard amortisation formula. A HELOC is a line of credit you draw from as needed, and the payment can vary with the balance and the rate. This tool models the payment on a fixed draw at a fixed rate, which is the right approach for a home equity loan and a reasonable estimate for a HELOC draw.
Only the figures you enter are used; no lender's LTV limit, rate or fee is assumed. Your actual limit also depends on credit, income, property type and the lender's own rules, and closing costs may apply. If the draw exceeds the available equity, the tool says so rather than returning an unrealistic payment.
Frequently asked questions
What is combined loan-to-value?
It is the total of all loans secured by the home divided by the home's value. A lender that allows 85% combined LTV will lend up to that level across your mortgage and any home equity loan.
What is the difference between a home equity loan and a HELOC?
A home equity loan is a fixed lump sum with a fixed payment. A HELOC is a revolving line of credit you can draw from, often with a variable rate and interest-only payments during the draw period.
Is my home used as collateral?
Yes. Both a home equity loan and a HELOC are secured by your home, so failing to repay could put it at risk. That is why the rate is usually lower than an unsecured loan.
Are there closing costs?
Often there are, including appraisal, title and filing fees. Some lenders waive them in exchange for keeping the line open for a minimum period. Add any costs to your comparison before deciding.
Can I borrow the full amount of my equity?
Usually not. Lenders cap the combined loan-to-value below 100% to leave a cushion, and the exact limit varies by lender, credit profile and property. The tool uses whatever maximum you enter.
Check your rate with a lending partner in about two minutes. Checking does not affect your credit score.
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