Home Equity Loan Calculator

A home equity loan lets you borrow against the value you have built up in your home. Most lenders cap borrowing at 80% of your home's value, minus whatever you still owe on your mortgage.

1. Enter your home value using a recent appraisal or Zillow estimate.
2. Enter your current mortgage balance from your latest statement.
3. Enter the amount you want to borrow. If it exceeds the 80% LTV limit, the calculator flags the shortfall.
4. Set the rate and term. Home equity loan rates in 2024 typically run 8% to 10% for well-qualified borrowers.

The calculator shows your available equity, monthly payment, total interest, and total repayment cost instantly.

Step 1: Find available equity

Available = (Home Value × 0.80) - Mortgage Balance

Example: $400,000 home, $250,000 balance. Available = $320,000 - $250,000 = $70,000.

Step 2: Calculate monthly payment

M = P × [r(1+r)^n] / [(1+r)^n - 1]

• M = monthly payment
• P = loan amount
• r = monthly interest rate (annual rate / 12)
• n = number of months

Example: $50,000 at 8.5% for 10 years. r = 0.007083, n = 120. Monthly payment = $619.77. Total interest = $24,372.

LTV Ratio = Mortgage Balance / Home Value. Lenders want this at or below 80% after adding the new loan.