Home equity loan calculator
How much you could borrow against your home and what a fixed-rate equity loan would cost.
About the home equity loan calculator
How much you could borrow against your home and what a fixed-rate equity loan would cost.
Part of SmartCalcy’s mortgage & real estate tools. It runs in your browser with no account, uses your own currency and units (change them at the top of the page), and gives estimates for information only, so check official guidance before you rely on a result.
How to use the home equity loan calculator
What it calculates and when to use it
Work out how much you could borrow against your home and the fixed payment on a home equity (second mortgage) loan.
How to use it, step by step
- Enter the home value and current mortgage balance.
- Set the maximum combined loan-to-value your lender allows.
- Enter the interest rate and term, and the amount you want to borrow.
What each input means
- Combined loan-to-value – The maximum of mortgage plus new loan as a percentage of value. Lenders commonly use 80–85%.
- Amount to borrow – Leave blank to use the maximum.
How to read the results
- Equity you could borrow – Value × limit − mortgage balance.
- Combined LTV after – Mortgage plus new loan ÷ value.
- Monthly payment – The fixed payment over the term.
The formula
Available = value × limit − mortgage balance. Payment = amount × r ÷ (1 − (1 + r)^−n), where r is the yearly rate ÷ 12.
A worked example
A 400,000 home with a 240,000 mortgage and an 85% limit leaves 100,000 to borrow. At 8.25% for 15 years the payment is 970.14, total interest is 74,625 and the combined loan-to-value is 85%.
Assumptions and limits
- Fixed rate and equal payments.
- Fees and valuation costs are excluded.
- The home secures the loan.
Common mistakes
- Borrowing the maximum for non-essential spending.
- Forgetting that missed payments put your home at risk.
Frequently asked questions
How is a home equity loan different from a HELOC?
A loan pays out one sum at a fixed rate and payment. A HELOC is a credit line with a variable rate that you draw on over time.
Is the interest tax-deductible?
In the US, only in limited cases such as home improvements. Ask a tax adviser.
Related tools
Details
- Equity you could borrow
- £100,000.00
- Equity now
- £160,000.0040% of value
- Combined loan-to-value after
- 85%
- Total interest
- £74,625.26
- Total repaid
- £174,625.26