Home Equity Loan Calculator
Determine how much equity you can borrow against your home, your monthly payment, and the total cost of a home equity loan.
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How to use this calculator
LTV = loan-to-value ratio. The maximum you can borrow is the lesser of your desired amount and the available equity.
- 1
Enter your home's current market value (get a recent appraisal or use an online estimate).
- 2
Enter your remaining mortgage balance.
- 3
Set the LTV limit — most lenders cap combined LTV at 80–85%.
- 4
Enter the loan amount you want, the interest rate, and term to see your payment and maximum borrowing power.
Frequently asked questions
How is the maximum loan amount worked out?
This tool uses maximum loan = home value × LTV limit − outstanding mortgage, floored at zero, and then caps your desired amount at that figure. With the defaults ($400,000 home, $200,000 mortgage, 85% limit) the maximum is $140,000.00, so a desired $50,000 is not capped. The LTV limit is whatever you type; 85% is just the starting value in the box and not a rule from any lender.
What is the difference between current LTV and the LTV limit?
Current LTV is the outstanding mortgage ÷ home value, shown as 50.00% for the defaults. The limit is the combined ratio you allow after the new loan is added. The gap between the two is what produces the maximum loan, so raising the limit from 75% to 90% on the default home moves the maximum from $100,000.00 to $160,000.00.
What does “capped by LTV” mean in the result?
It appears when your desired amount is larger than the maximum, so the payment is calculated on the maximum instead. Asking for $200,000 on the default home gives $140,000.00 with that note, a payment of $1,698.59 and total interest of $63,830.36.
Which formula gives the monthly payment?
The loan is treated as a fixed-rate, fully amortising loan: payment = P × r ÷ (1 − (1 + r)^−n), with r the annual rate ÷ 12 and n the term in years × 12, paid at the end of each month. At the default $50,000, 8% and 10 years that is $606.64.
What if the mortgage already exceeds the limit?
The maximum becomes $0.00 and the amount is shown as capped, with a payment of $0.00. For example a $400,000 home with a $400,000 mortgage and an 80% limit has no room. A home value of 0 or a term of 0 returns n/a.
Can it handle a line of credit or a variable rate?
No. It models a lump-sum loan with one fixed rate and equal payments. A revolving home-equity line, interest-only draw period, balloon or rate reset would need a different calculation.
Are closing costs, appraisal fees and taxes included?
No. Origination or appraisal fees, closing costs, annual fees, insurance and any tax treatment of the interest are outside the calculation. The tool also does not assess income, credit or other debts, which a lender would apply before agreeing any amount.
Does a 0% rate work?
Yes, an entered 0 is used as 0. The approved amount is divided evenly across the months, so $50,000 over 10 years is $416.67 a month with $0.00 interest. Real rates and terms depend on the lender and change over time.
Home equity borrowing: how the LTV limit caps the loan
Two steps: the cap, then the payment
The tool first finds how much room remains under your chosen loan-to-value limit, then prices a fixed-rate loan for the smaller of that room and the amount you asked for. Room is home value × limit − mortgage. The default home is worth $400,000 with a $200,000 mortgage and an 85% limit, which leaves $140,000.00. A desired $50,000 fits, giving $606.64 a month at 8% over 10 years, $22,796.56 of interest and $72,796.56 repaid.
Worked example: asking for more than the cap allows
Request $200,000 against the same home and the tool caps the loan at $140,000.00. The payment on that capped amount is $1,698.59 a month, with $63,830.36 of interest and $203,830.36 repaid in total. A separate case with a $500,000 home, a $300,000 mortgage, an 80% limit, a $60,000 request at 8.5% over 15 years shows a maximum of $100,000.00, so the request stands. The payment is $590.84 and interest is $46,351.87. The cap only bites when the request is larger than the room, and it never raises the loan above the amount you asked for.
How the limit moves the ceiling
On the default home, with a $200,000 mortgage and a $50,000 request, the table varies only the LTV limit. The maximum changes by $20,000 for every five percentage points on a $400,000 property, and the requested $50,000 stays below the ceiling in every row, so the payment does not change. A higher limit would matter only if the requested amount were close to the ceiling, as in the $200,000 case above.
| LTV limit | Maximum loan | Approved amount | Monthly payment |
|---|---|---|---|
| 75% | $100,000.00 | $50,000.00 | $606.64 |
| 85% | $140,000.00 | $50,000.00 | $606.64 |
| 90% | $160,000.00 | $50,000.00 | $606.64 |
Edge cases the tool handles
When the mortgage alone is at or above the limit, the maximum is $0.00 and the payment is $0.00. At an entered rate of 0%, $50,000 over 10 years costs $416.67 a month in principal alone. A home value or term of 0 gives n/a instead of an infinite or undefined payment.
What the estimate leaves out
Closing costs, appraisal and annual fees, insurance, the tax treatment of interest, variable rates and credit lines are not modelled, and no lender-style test of income or credit is applied. Real rates, fees and lending rules change, so a lender’s written offer decides both the amount and the cost.
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Results are estimates for informational purposes only and do not constitute professional financial, medical, legal, or technical advice. Read full disclaimer →