How to use the Home Equity Loan Calculator
This tool estimates how much you could borrow against your home and the payment.
Open the Home Equity Loan Calculator →
What you need to enter
- Home value ($)
- Mortgage balance ($)
- Max combined loan-to-value (%)
- Loan rate (%)
- Term (years)
The formula
Maximum loan = home value × allowed combined LTV − current mortgage. Payment uses the standard loan formula.
Worked example
Using the default values in the calculator:
- Home value ($): 450000
- Mortgage balance ($): 250000
- Max combined loan-to-value (%): 85
- Loan rate (%): 8.5
- Term (years): 15
| Maximum loan | $132,500.00 |
| Current equity | $200,000.00 |
| Monthly payment | $1,304.78 |
| Total interest | $102,360.38 |
Tips for better results
- Lenders typically allow 80–85% combined LTV.
- Your home is the collateral, so borrow carefully.
Common mistakes to avoid
- Counting all equity as available.
- Forgetting closing costs.
Please note: Calculators and guides give general estimates, not financial, tax or investment advice. Real offers depend on your lender, location and personal situation. See our Disclaimer.