Home Equity Loan Calculator
This free home equity loan calculator shows how much you can borrow against your home: enter your home value, current mortgage balance, and the lender's max combined loan-to-value (LTV) to see your available equity, your max home equity loan, and an estimated monthly payment — all before you talk to a lender.
Enter your numbers
Your results
LTV summary
| Item | Amount |
|---|
Your equity vs mortgage
Estimates only — not lending advice. Actual loan offers vary by lender, appraisal, credit history, income, and fees. Origination, appraisal, and closing costs are not included.
How to use this calculator
Enter your home value — the current market or appraised value of your home, not what you paid for it — and your current mortgage balance, which is what you still owe on your first mortgage. Then set the max combined LTV your lender allows: 80% is the most common cap, but some lenders go to 85% or 90%. Results update instantly as you change any input.
The headline number is your max home equity loan — the largest second loan you could take while staying under the LTV limit. Compare it with your available equity (value minus what you owe): the max loan is usually smaller, because the lender's LTV cap leaves a cushion above your mortgage.
Finally, add the loan rate and term to see the estimated monthly payment on that max loan. Try a shorter term to see how much interest you'd save, or a longer term to lower the monthly bill — then decide how much to actually borrow, which can be less than the maximum.
How it works
The calculator combines two pieces of math. First, the LTV math:
Max loan = (home value × max LTV) − mortgage balance, and available equity = home value − mortgage balance. Your current LTV is mortgage balance ÷ home value, and your combined LTV after borrowing the maximum is (mortgage balance + max loan) ÷ home value — which equals the max LTV by definition. If the balance is already above the max, the max loan is $0.
Second, the payment math uses the standard loan amortization formula for fixed monthly payments:
M = L × r × (1+r)n / ((1+r)n − 1), where M is the monthly payment, L is the max loan amount, r is the monthly interest rate (annual rate ÷ 1200), and n is the total number of payments (years × 12). With a 0% rate, the payment is simply L ÷ n.
Assumptions: the home value is an estimate (lenders use their own appraisal); the rate stays fixed for the whole term; payments are equal and made monthly on time; no fees, taxes, insurance, or prepayments. This is a max-loan and LTV tool — it does not compare refinancing options or model a payoff schedule for your existing mortgage. All figures are estimates for planning — not lending advice and not a loan offer.
Frequently asked questions
How much of a home equity loan can I get?
Most lenders cap your combined loan-to-value (CLTV) at 80% of your home's appraised value, though some allow 85-90%. The max second loan is roughly (home value x max LTV) minus your current mortgage balance - for example, a $400,000 home with a $250,000 balance at 80% LTV gives $70,000 of borrowing capacity. Your actual offer also depends on your credit, income, and the lender's appraisal.
What is the difference between a home equity loan and a HELOC?
A home equity loan gives you one lump sum with a fixed rate and fixed monthly payments - the payment estimate on this page uses that structure. A HELOC is a revolving credit line with a variable rate that you draw from as needed, so payments can change over time. Both use your home as collateral.
How is the estimated monthly payment calculated?
With the standard loan amortization formula: payment = L x r x (1+r)^n / ((1+r)^n - 1), where L is the max loan amount, r is the monthly rate (annual rate divided by 1200), and n is the number of monthly payments. Each payment covers that month's interest first, with the rest reducing the principal. At 0% interest the payment is simply the loan divided by the number of months.
What if my mortgage balance is already above the max LTV?
Then the calculator shows $0 of additional borrowing capacity at that LTV setting - you would need to pay down your mortgage, raise the LTV setting (some lenders allow up to 90%), or wait for your home's value to rise. The combined LTV row shows exactly where you stand.
Are closing costs and fees included in this estimate?
No. This calculator estimates the max loan amount, available equity, and principal-and-interest payment only. Real home equity loans may add origination fees, appraisal fees, and closing costs that raise the true cost of borrowing. Figures here are estimates for planning, not lending advice and not a loan offer.