Home Equity Loan Calculator
Calculate your estimated monthly payment for a home equity loan based on home value, outstanding mortgage, loan amount, interest rate, and term.
Published by:
isCalculator Editorial Team
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How to use this tool?
How to Use the Home Equity Loan Calculator
- Enter your home value (e.g., $300,000). This is the current market value of your property.
- Enter your outstanding mortgage balance (e.g., $150,000). This is what you still owe on your primary mortgage.
- Enter the loan amount you want to borrow (e.g., $50,000).
- Enter the annual interest rate as a percentage (e.g., 7.5 for 7.5%).
- Enter the loan term in years (e.g., 15).
- Click Calculate.
What the calculator checks:
- Your equity (home value minus mortgage) must be positive and at least equal to the loan amount.
- The loan-to-value ratio (LTV) must not exceed 100%.
Results you’ll see:
- Monthly payment – your estimated fixed monthly payment.
- Equity – your current home equity.
- LTV – your combined loan-to-value ratio.
All monetary values are in US dollars ($). Interest rate is in annual percentage. Term is in whole years.
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Frequently Asked Questions
A home equity loan is a fixed-rate loan where you borrow against the equity you have built in your home. Equity is the difference between your home's current market value and the outstanding mortgage balance.
The monthly payment is calculated using the standard amortization formula: M = P * [r(1+r)^n] / [(1+r)^n - 1], where P is the loan amount, r is the monthly interest rate, and n is the number of monthly payments.
Typically, lenders allow a combined LTV of up to 80-90%. This calculator will warn you if your LTV exceeds 100%.
