Free Home Equity Loan Calculator
Calculate your available home equity and the monthly payment on a fixed-rate home equity loan. Free. No signup required.
- Available Equity$162,500.00
- Requested Loan Amount$50,000.00
Your $50,000.00 request fits comfortably within the $162,500.00 of equity available at this lender's max LTV.
- Monthly Payment$619.93
About the Free Home Equity Loan Calculator
Home equity is the gap between what your house is worth and what you still owe on it, but that gap isn't the same as what you can borrow — lenders cap how much of it they'll let you access, usually to 80-85% of your home's value combined with your existing mortgage. This calculator applies that cap first, so the equity figure you see is what a lender would actually approve, not just the paper number from a home value estimate.
It's built for homeowners who already know what they want to borrow for — a renovation, consolidating higher-rate debt, a major expense — and need to know two things before they apply: whether their equity actually covers it, and what the fixed monthly payment would look like at a given rate and term.
Home value estimates and mortgage balances are exactly the kind of numbers people would rather test privately before a lender's online form starts a credit inquiry — this calculator runs entirely in your browser, so nothing here is submitted anywhere.
How it’s calculated
Available equity is your home's value times the lender's maximum loan-to-value percentage, minus what you still owe on your primary mortgage — that's the ceiling on what any home equity loan or line of credit could reach, combined with your existing mortgage. The monthly payment then uses the standard fixed-rate amortization formula, since unlike a HELOC, a home equity loan is disbursed as one lump sum and repaid on a set schedule from day one.
Frequently asked questions
What's the difference between a home equity loan and a HELOC?
A home equity loan gives you one lump sum at a fixed rate with a fixed payment from the start. A HELOC is a revolving credit line you draw from as needed, usually at a variable rate, with interest-only payments during an initial draw period.
How much of my home equity can I actually borrow?
Most lenders cap combined borrowing (your existing mortgage plus the new loan) at 80-85% of your home's appraised value, though some go higher for borrowers with strong credit. The remaining 15-20% stays as a cushion the lender requires, not equity you can tap.
Is a home equity loan the same as a second mortgage?
Yes — a home equity loan is a second mortgage in every practical sense: it's a separate lien on your home, sits behind your primary mortgage in repayment priority, and puts your home up as collateral just like your first mortgage does.
Can I get a home equity loan with less than 20% equity in my home?
It's possible with some lenders if your combined loan-to-value still stays under their max, but options narrow quickly below 20% equity, and rates tend to be less favorable. Run your numbers here first to see if you clear a lender's typical 80-85% CLTV threshold at all.
Is home equity loan interest tax deductible?
Only if the loan proceeds are used to buy, build, or substantially improve the home securing the loan, under current US tax rules — using the money for debt consolidation or other expenses generally doesn't qualify. Confirm your specific situation with a tax professional before assuming either way.
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