Home Equity Loan CalculatorHow much equity you have, how much you can borrow and what it will cost
Enter your home value and mortgage balance to see your equity, your borrowing limit at 80%, 85% or 90% combined loan-to-value, and the monthly payment, total interest and real cash you’d receive on a home equity loan.
By Manzoor Ahmad · 13+ years of web development & SEO experienceLast updated: October 19, 2026
You could borrow up to
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Combined loan-to-value (CLTV)
Blue is what you owe today; orange is the new loan. Lenders cap the total at the black line.
Payment and cost by loan term
A longer term lowers the payment but multiplies the interest.
| Term | Monthly payment | Total interest | Total repaid |
|---|
Consolidating debt: is it worth it?
Loan balance and interest over time
How much can I borrow with a home equity loan? Most lenders let your total home debt reach 80%–85% of your home’s value, and some go to 90%. Multiply your home value by that limit and subtract what you still owe. With a $450,000 home, a $250,000 mortgage and an 85% limit: $450,000 × 0.85 − $250,000 = $132,500. A $60,000 home equity loan at 8.25% for 15 years would cost about $582 a month.
How to Use the Home Equity Loan Calculator
- Enter your home value and balancesUse a realistic value from recent comparable sales, your current mortgage balance and any existing HELOC or second mortgage.
- Pick the lender’s CLTV limit85% is the most common cap. Strong credit may qualify for 90%; some lenders stop at 80%.
- Set the loan amount, rate and termSee the payment, total interest and the cash you actually receive after closing costs.
- Choose what the money is forPaying off debt? Compare the interest you’d save. Renovating? See the tax note on deductibility.
Home Equity Loan Formulas
Home equity: Home value − all loans secured by the home
Maximum loan: Home value × CLTV limit − existing loan balances
CLTV: (Existing balances + new loan) ÷ home value × 100
Monthly payment: P × r ÷ (1 − (1 + r)^−n) where r = annual rate ÷ 12 and n = months
Worked example
- Home value $450,000; mortgage $250,000 → equity $200,000 (44.4%)
- 85% CLTV limit: $450,000 × 0.85 = $382,500
- Maximum loan: $382,500 − $250,000 = $132,500
- Borrow $60,000 at 8.25% for 15 years → $582.08/month, $44,775 total interest
- 2% closing costs ($1,200) → cash received $58,800
- New CLTV: $310,000 ÷ $450,000 = 68.9%
Your “value-drop buffer”
After this loan you’d owe $310,000 on a $450,000 home. Your home could lose about 31% of its value before you owed more than it’s worth.
That buffer matters because a home equity loan is secured by your house. If prices fall and you need to sell or refinance, a thin buffer can leave you unable to cover the loans. The calculator shows this figure for your own numbers.
How Much Can I Borrow? Quick Reference
Maximum home equity loan amounts for a home with a $200,000 mortgage balance at the three most common combined loan-to-value limits.
| Home value | 80% CLTV | 85% CLTV | 90% CLTV |
|---|---|---|---|
| $300,000 | $40,000 | $55,000 | $70,000 |
| $400,000 | $120,000 | $140,000 | $160,000 |
| $500,000 | $200,000 | $225,000 | $250,000 |
| $600,000 | $280,000 | $310,000 | $340,000 |
Monthly Payment on a $50,000 Home Equity Loan
Payments at 8.25%, close to recent average home equity loan rates. Every $10,000 more or less changes the payment by one-fifth of these figures.
| Term | Monthly payment | Total interest |
|---|---|---|
| 5 years | $1,019.81 | $11,189 |
| 10 years | $613.26 | $23,592 |
| 15 years | $485.07 | $37,313 |
| 20 years | $426.03 | $52,248 |
| 30 years | $375.63 | $85,228 |
The term trap: going from 15 to 30 years trims the payment by about $109 a month but more than doubles the interest, from $37,313 to $85,228. Pick the shortest term whose payment fits comfortably in your budget.
Home Equity Loan vs. HELOC vs. Cash-Out Refinance
All three turn home equity into cash. The right one depends on whether you need a lump sum or a flexible line, and on how your current mortgage rate compares with today’s rates.
| Feature | Home equity loan | HELOC | Cash-out refinance |
|---|---|---|---|
| How you get the money | One lump sum | Draw as needed during a draw period | Lump sum from a new, larger first mortgage |
| Rate | Usually fixed | Usually variable | Fixed or adjustable |
| Payment | Fixed principal + interest from day one | Often interest-only at first, then rises | Replaces your current mortgage payment |
| Keeps your current mortgage? | Yes | Yes | No — it’s paid off and replaced |
| Best when | You need a set amount and want a predictable payment | Costs are spread out or uncertain, like a phased renovation | Today’s mortgage rates are near or below your current rate |
If your first mortgage carries a rate well below today’s, a home equity loan or HELOC usually costs less overall than a cash-out refinance, because it leaves that cheaper loan untouched.
Tax Rules, Requirements and Risks
Is home equity loan interest tax-deductible?
Only in some cases. Under IRS Publication 936, interest on a home equity loan or HELOC is deductible only when the money is used to buy, build or substantially improve the home that secures the loan — a new roof or kitchen remodel, not routine repairs. It also counts toward the $750,000 total limit on deductible mortgage debt, and you must itemize. Interest on equity used to pay off credit cards, buy a car or pay tuition isn’t deductible.
What lenders usually look at
- Equity: enough to stay at or under the lender’s CLTV cap after the loan.
- Credit score: stronger scores unlock higher CLTV and lower rates.
- Debt-to-income: total monthly debts, including the new payment, against your income.
- Appraisal: the lender’s valuation, which may differ from yours.
Risks to weigh
- Your home is collateral — missed payments can lead to foreclosure.
- Turning credit card debt into home debt removes it from unsecured status.
- Falling home prices shrink your value-drop buffer.
- Closing costs, often 2%–5%, reduce the cash you receive.
Smart uses
- Renovations that add value or fix serious problems.
- Paying off high-rate debt with a plan not to run balances up again.
- One-time costs with a clear payoff schedule.
- Avoid funding everyday spending or depreciating purchases.
Related Home Equity and Loan Calculators
Compare your options before you borrow against your home.
Home Equity Loan FAQs
Subtract everything you owe on the home — your mortgage plus any HELOC or second mortgage — from its current market value. A $450,000 home with a $250,000 mortgage has $200,000 of equity, or 44.4% of its value.
Usually up to 80%–85% of your home’s value minus what you owe, and sometimes 90% with strong credit. Multiply your home value by the lender’s CLTV limit and subtract your existing balances to find your maximum.
At 8.25%, about $1,020 a month over 5 years, $613 over 10 years, $485 over 15 years or $376 over 30 years. Longer terms lower the payment but greatly increase total interest.
Double the $50,000 figures: at 8.25%, roughly $1,227 a month over 10 years, $970 over 15 years or $852 over 20 years.
As of October 15, 2026, Curinos data published by Forbes Advisor put the average 30-year home equity loan APR at 8.17% and the average HELOC at 7.47%. Your rate depends on your credit score, CLTV, loan amount and term.
Combined loan-to-value is the total of all loans on the home divided by its value. Lenders cap CLTV — most often at 85% — to keep a cushion of equity, so it sets the most you can borrow and influences your rate.
Only if you use the money to buy, build or substantially improve the home that secures the loan, you itemize deductions, and your total mortgage debt is within the $750,000 limit, according to IRS Publication 936. Interest on equity used for other purposes isn’t deductible.
It can save a lot of interest when your current debt carries a much higher rate, as credit cards often do. The risks are that the debt becomes secured by your home and that a longer term can erase the savings. Choose a term no longer than your original payoff plan.
They often run about 2%–5% of the loan amount and can include appraisal, origination, title and recording fees. Some lenders waive costs in exchange for a higher rate or require you to keep the loan open for a minimum period.
A home equity loan suits a one-time expense and gives you a fixed rate and payment. A HELOC suits costs spread over time and charges interest only on what you draw, but its rate is usually variable and the payment rises when repayment begins.
Some lenders approve lower credit scores, but usually with a lower CLTV cap, a higher rate and stricter debt-to-income limits. Use the 80% setting in the calculator to see a more conservative borrowing limit.
Yes. It is free, needs no sign-up and runs entirely in your browser. Your home value, balances and loan details are not sent to DexoCalc or stored.
Manzoor Ahmad
13+ years of web development & SEO experience · Founder, DexoCalc
Manzoor builds and maintains every DexoCalc calculator, including the full mortgage library. This tool uses standard amortization math and the CLTV method lenders apply, and its rate and tax references are checked against current published data and IRS guidance.
Sources
Results are estimates for planning, not a loan offer or tax advice. Actual rates, limits, fees and approval depend on the lender, your credit and an appraisal. Your home secures a home equity loan; consult a lender and tax professional before borrowing.