Home Equity Loan Calculator
Estimate home-equity loan borrowing capacity, fixed payment, combined loan-to-value, closing costs and total interest.
- Limits borrowing using a configurable maximum CLTV
- Shows fixed payment and total interest
- Calculates net proceeds after closing-cost assumption
Calculator workspace
Change any assumption and recalculate. Your entries stay in this browser unless you choose to share or copy a result.
What this Home Equity Loan Calculator calculates
Home equity does not automatically equal borrowing capacity. Lenders commonly limit the combined balance of the first mortgage and new equity debt to a percentage of property value. This calculator applies a user-selected maximum combined loan-to-value, compares it with the desired loan, and then calculates payment, interest and net proceeds for the amount that fits inside the limit.
The result is intentionally more than a single number. Supporting figures are shown beside the headline answer so you can see which part of the calculation is driving the outcome. This makes the tool useful for scenario testing: change one assumption, calculate again, and compare the supporting values rather than relying on a black-box result.
Formula and calculation method
Available loan = home value × max CLTV − existing mortgage; payment uses fixed-rate amortization on the allowable loan amount.
Inputs are validated before calculation and the arithmetic runs locally in the browser. Monetary fields use the selected currency only for display formatting. The calculator does not retrieve bank, payroll, property, medical, market or exchange-rate data from an external service.
How to use it
- Enter values that describe the same scenario and reporting period.
- Keep percentages and units consistent with the labels shown beside each input.
- Select Calculate and review both the headline result and the supporting metrics.
- Change one assumption at a time to understand sensitivity instead of accepting a single scenario.
- Use Copy Result, Share Result or Save Result Image when you need to keep a record of the calculation.
Worked example
For a home valued at 500,000 with a 280,000 first mortgage and an 80% maximum CLTV, the combined debt ceiling is 400,000. That leaves up to 120,000 of theoretical additional borrowing before other underwriting rules. Enter a 75,000 desired loan, rate, term and estimated closing costs to calculate the installment payment and net proceeds.
How to interpret the result
A favorable CLTV does not guarantee approval. Income, credit, lien position, appraisal, property type, reserves and lender policy still matter. Compare the fixed home-equity-loan payment with a HELOC scenario if you are deciding between a predictable installment loan and a revolving line with potential rate changes.
For an important decision, compare the output with original documents, lender or employer terms, supplier information, professional guidance, or other authoritative records relevant to the calculation. Small differences in rates, timing, fees and definitions can materially change a result even when the formula itself is correct.
Important assumptions and limitations
The maximum CLTV is an input, not a statement of any lender’s policy. The model assumes a fixed-rate fully amortizing loan with percentage-based closing costs. It does not include taxes, appraisal adjustments, lender credits, prepayment rules, subordinate-lien pricing, or changes in home value.
This calculator is for planning, checking, education and general informational use. It is designed to make assumptions visible and calculations reproducible, but it does not replace a contract, disclosure, professional opinion, medical assessment, accounting policy or lending decision.
Frequently asked questions
What is CLTV?
Combined loan-to-value is the total of existing mortgage debt plus the new loan divided by the home value.
Why can the calculator reduce my desired loan?
If the desired amount would exceed the selected maximum CLTV, the calculator uses the maximum amount that fits the limit.
Is this the same as a HELOC?
No. A home-equity loan is typically an installment loan with a fixed initial amount, while a HELOC is a revolving line during its draw period.