How to use this calculator
- Home value: a realistic estimate of what your home would sell for. The lender will order an appraisal.
- Mortgage balance: everything you still owe on loans secured by the home.
- Maximum combined LTV: the lender’s cap on all loans together. Ask lenders; 80%, 85% and 90% are the options here.
- Loan amount, fixed rate and term: what you want to borrow and the offer you’re considering.
The results show your monthly payment, the most you can borrow at the chosen cap, total interest, a yearly principal and interest chart and the full payment schedule as a downloadable CSV.
The formulas
The most you can borrow:
The monthly payment follows the standard amortization formula:
where P is the loan amount, r the annual rate ÷ 12 and n the number of monthly payments.
Worked example
Your home is worth $450,000 and you owe $250,000. At an 85% CLTV cap:
- Maximum loan: $450,000 × 0.85 − $250,000 = $132,500
- You borrow $50,000 at a fixed 8% for 15 years.
- Monthly payment: $477.83 for 180 months (the last one is $476.51 after rounding).
- Total interest: $36,008, for $86,008 in total payments.
- Combined LTV after the loan: ($250,000 + $50,000) ÷ $450,000 = 66.7%, leaving $150,000 of equity.
In the first year you pay $3,935 of interest; by year 15 almost all of each payment goes to principal.
Payment by term
$50,000 at 8%:
| Term | Monthly payment | Total interest | Total paid |
|---|---|---|---|
| 5 years | $1,013.82 | $10,829 | $60,829 |
| 10 years | $606.64 | $22,796 | $72,796 |
| 15 years | $477.83 | $36,008 | $86,008 |
| 20 years | $418.22 | $50,373 | $100,373 |
| 30 years | $366.88 | $82,080 | $132,080 |
Stretching from 15 to 30 years lowers the payment by about $111 but more than doubles the interest. Match the term to what you’re paying for: a 30-year loan for a kitchen you’ll redo in 15 years means paying for it long after it’s gone.
Payment by rate
$50,000 over 15 years:
| Rate | Monthly payment | Total interest |
|---|---|---|
| 7% | $449.41 | $30,895 |
| 8% | $477.83 | $36,008 |
| 9% | $507.13 | $41,285 |
| 10% | $537.30 | $46,715 |
Home equity loan vs. HELOC vs. cash-out refinance
All three let you borrow against your home. The differences:
| Home equity loan | HELOC | Cash-out refinance | |
|---|---|---|---|
| How you get the money | Lump sum | Draw as needed | Lump sum |
| Rate | Usually fixed | Usually variable | Fixed or adjustable |
| Payments | Equal from the start | Often interest-only, then higher | One new mortgage payment |
| Your first mortgage | Stays as is | Stays as is | Replaced |
When a low first-mortgage rate matters. Say you owe $250,000 at 3.5% with 25 years left ($1,251.56 a month) and need $50,000. A 15-year home equity loan at 8% adds $477.83, for $1,729.38 in total. A cash-out refinance to $300,000 at 6.25% for 30 years would cost $1,847.15 a month before closing costs, and it would move the whole $250,000 from 3.5% to 6.25%. The home equity loan keeps the cheap debt cheap.
A cash-out refinance tends to win when current rates are at or below your existing rate. A HELOC fits better when you’ll spend over time, such as a renovation paid in stages. You can model a cash-out refinance with the refinance calculator.
Tips before you borrow
- Compare the APR and fees, not just the rate. Appraisal, origination and title charges vary by lender.
- Leave an equity cushion. If home prices fall, borrowing up to the cap could leave you owing more than the home is worth.
- Check your debt-to-income ratio. Lenders count the new payment alongside your mortgage and other debts; see where you stand with the debt-to-income ratio calculator.
- Consider unsecured options for small amounts. A personal loan costs more in interest but doesn’t put your home on the line.
Assumptions and limitations
The calculator assumes a fixed rate, equal monthly payments rounded to the cent and no fees added to the balance. Lenders may also set minimum loan amounts, credit score and income requirements, and their own CLTV caps based on your credit and property type.
Sources
- Consumer Financial Protection Bureau: What is a home equity loan?
- Consumer Financial Protection Bureau: What is a home equity line of credit (HELOC)?
This calculator gives estimates for planning only and isn’t financial advice.
Frequently asked questions
How much can I borrow with a home equity loan?
Lenders cap the total of all loans on your home at a percentage of its value, called the combined loan-to-value (CLTV). Multiply the value by that cap and subtract what you owe. For a $450,000 home with a $250,000 mortgage at an 85% cap, that's $382,500 − $250,000 = $132,500.
What is the monthly payment on a $50,000 home equity loan?
At a fixed 8% over 15 years, it's $477.83 a month, with $36,008 of total interest. Over 10 years the payment is $606.64 and interest $22,796; over 20 years, $418.22 and $50,373.
Is a home equity loan the same as a second mortgage?
Yes, it's a type of second mortgage. You get a lump sum, usually at a fixed rate, and repay it in equal monthly payments alongside your first mortgage. Your home secures both loans, so missing payments can lead to foreclosure.
Home equity loan or HELOC?
A home equity loan gives you all the money at once at a fixed rate and payment, which suits a single known cost like a renovation or debt consolidation. A HELOC is a revolving line, usually variable-rate, with interest-only payments at first, which suits costs spread over time. You pay interest on the whole loan from day one with a home equity loan, but only on what you've drawn with a HELOC.
Is a home equity loan better than a cash-out refinance?
Often, when your first mortgage has a low rate. A cash-out refinance replaces the whole mortgage at today's rate, while a home equity loan leaves the cheap first loan alone and charges the higher rate only on the new money. If current rates are below your mortgage rate, a cash-out refinance can be the cheaper choice.
Are there closing costs on a home equity loan?
Often, yes. Lenders may charge appraisal, origination, title or recording fees, though some waive or reduce them. The CFPB advises comparing more than just the monthly payment, because upfront costs change the true price of the loan.
Updated November 2026. Results are estimates for educational purposes and depend on the inputs you provide.