Equity Loan Calculator
Calculate your potential home equity loan amount, monthly payment, and total interest based on your home value, outstanding mortgage, and loan terms.
Published by:
isCalculator Editorial Team
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How to use this tool?
How to Use the Equity Loan Calculator
- Enter your home value – Input the current market value of your property in dollars (e.g., 500000).
- Enter your outstanding mortgage balance – The amount you still owe on your mortgage (e.g., 300000).
- Set the maximum LTV ratio – Usually 80% for home equity loans. This is the percentage of your home’s value the lender will consider.
- Input the interest rate – The annual interest rate as a percentage (e.g., 6.5).
- Input the loan term – The number of years to repay the loan (1–30 years).
- Click “Calculate” – The calculator will show:
- Max Loan Amount – The equity available after subtracting your mortgage from the LTV-based limit.
- Monthly Payment – Your estimated monthly payment using the standard amortization formula.
- Total Interest – The total interest paid over the loan term.
Tip: All monetary values must be in dollars. Ensure all fields are filled correctly; invalid entries will show error highlights.
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Frequently Asked Questions
An equity loan, also known as a home equity loan, allows homeowners to borrow against the equity in their property. It is typically a fixed-rate, lump-sum loan secured by the home's value minus any outstanding mortgage.
The maximum loan amount is calculated as (Home Value × LTV%) - Outstanding Mortgage. LTV (Loan-to-Value) ratio is usually capped at 80% by lenders.
Your monthly payment depends on the loan amount, interest rate, and loan term. A higher interest rate or shorter term increases monthly payments, while a longer term reduces them.
