Home Equity Loan Calculator
Borrowing against your home? Work out the monthly payment and total interest on a home equity loan, and check your combined loan-to-value stays within lender limits.
How much is a $100,000 home equity loan per month?
Home equity loan: A home equity loan is a lump-sum loan secured by your home equity — the home's value minus what you still owe — repaid in fixed monthly payments, usually at a fixed interest rate. A $100,000 home equity loan at 7.5% APR over 15 years costs $927.01 a month and about $66,862 of interest, $166,862 in total. On a $500,000 home with $280,000 still owed on the first mortgage, it makes a combined loan-to-value of 76% and leaves $120,000 of equity untouched.
How to calculate a home equity loan payment
- Add the existing mortgage balance and the new loan amount, then divide by the home's value to get the combined loan-to-value (CLTV).
- Apply the amortization formula to the new loan — monthly rate is APR ÷ 12 — for its monthly payment.
- Multiply the payment by the number of months and subtract the loan amount for the total interest.
- Check the CLTV against the lender's limit, commonly 80–85%.
Source: CFPB — Owning a Home
Amortization by year
Most lenders cap combined loan-to-value at 80–90% of the home's value.
How this home equity loan calculator works
A home equity loan is a second, separate loan secured by your house, paid as a lump sum and repaid in fixed installments — unlike a HELOC, which works more like a credit card. This calculator computes the payment with the standard amortization formula and, just as importantly, checks the constraint lenders actually apply: combined loan-to-value (CLTV) — your existing mortgage balance plus the new loan, divided by your home's value. Most lenders cap CLTV at 80–90%, so the calculator shows both your CLTV after the loan and the equity you would still hold. If the CLTV comes out above 90%, most lenders will not approve the full amount, no matter how good your credit is.
Worked example
Your home is worth $500,000 with $280,000 left on the first mortgage. You take a $100,000 home equity loan at 7.5% APR over 15 years. The monthly payment is $927.01; over the term you pay about $66,862 of interest, making the total cost $166,862. The combined loan-to-value is ($280,000 + $100,000) ÷ $500,000 = 76% — comfortably inside typical limits — and you keep $120,000 of equity. Enter the defaults above to see the full amortization table, and watch how much of each early payment is interest.
Home equity loan vs. HELOC vs. cash-out refinance
- Home equity loan. Fixed rate, fixed payment, lump sum. Best for a one-time, known expense — a renovation quote, a debt consolidation figure — where payment certainty matters.
- HELOC. Variable rate, draw what you need during a draw period, interest-only payments at first. Flexible for staged projects, but the rate floats and payments jump when the repayment period begins.
- Cash-out refinance. Replaces your first mortgage entirely with a bigger one. Only sensible when the new first-mortgage rate beats your current one — compare it in the full mortgage calculator, because refinancing restarts your amortization clock and its closing costs run 2–5% of the loan.
The risks to weigh honestly
Every home equity product is secured by your house: miss payments and the lender can foreclose, which is why using one to consolidate credit-card debt only works if the spending that created the debt stops — otherwise you have converted dischargeable card debt into a lien on your home and kept the habit. Rates are lower than cards precisely because the collateral is real. Also budget for closing costs (typically 2–5% of the loan amount, sometimes rolled into the rate), and remember that since 2018, home-equity interest is tax-deductible in the US only when the loan is used to buy, build or substantially improve the home itself. For pure debt consolidation, run the equity loan against the cards in our loan comparison tool and the payoff calculator before deciding.
Frequently asked questions
How much equity can I borrow against my home?
Most lenders cap combined loan-to-value at 80–90%. On a $500,000 home with a $280,000 mortgage, an 85% cap means total borrowing of $425,000, so up to about $145,000 of equity borrowing. Your credit score, income and the lender's own limits can lower that figure; the calculator shows your CLTV for any amount you enter.
What is a good rate for a home equity loan?
Home equity loan rates typically sit a little above first-mortgage rates and well below credit cards and personal loans, because the loan is secured by your home. Well-qualified borrowers in recent years have seen rates in the 7–9% range, but rates move with the market — get at least three quotes and compare them in our loan comparison tool.
Home equity loan or HELOC — which is cheaper?
For a single lump-sum expense repaid steadily, the fixed-rate loan is usually cheaper in total and always more predictable. A HELOC can cost less if rates fall or you repay quickly during the draw period, but its variable rate can also rise substantially. If you would lose sleep over a payment jump, the loan is the safer instrument.
Can I lose my home with a home equity loan?
Yes — that is the fundamental risk. The loan is secured by your property, so sustained non-payment can lead to foreclosure, unlike unsecured debts such as credit cards. Only borrow against your home for purposes you are confident you can repay, and keep an emergency fund intact rather than borrowing to build one.
Is home equity loan interest tax-deductible?
In the US, interest on home equity borrowing is currently deductible only when the funds are used to buy, build or substantially improve the home securing the loan — not for debt consolidation or general spending — and within overall mortgage-debt limits. Tax law changes; confirm your situation with a tax professional.
Sources
- CFPB — Owning a Home — Home equity loans, HELOCs and combined loan-to-value explained by the CFPB.