Home Equity Loan Calculator
See how much you can borrow against your home equity, what your monthly payment would be, and how loan-to-value limits affect your borrowing power.
Most lenders cap combined loan-to-value at 80 - 85%.
Max You Can Borrow
$100,000
40% equity · 80% LTV after loan
Total Home Equity
$200,000
Monthly Payment
$1,240
10-year term at 8.5%
Total Interest
$48,783
Total Cost
$148,783
Principal + interest
Home Value Breakdown
Recommended Annual Income
$53,143 or more
To keep this $1,240/mo equity loan payment within 28% of income on its own, you need at least this annual pre-tax income. Lenders also count your existing mortgage and other debts.
That's $4,429/mo gross income
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Try it freeNo signup requiredUnderstanding Home Equity Loans
How much equity can I access?
Most lenders allow you to borrow up to 80 - 85% of your home's value minus your existing mortgage balance. This is called the combined loan-to-value (CLTV) ratio. If your home is worth $500,000 and you owe $300,000, you may be able to borrow up to $100,000 at an 80% CLTV limit.
Home equity loan vs HELOC
A home equity loan gives you a lump sum with a fixed rate and fixed payments - predictable and simple. A HELOC (Home Equity Line of Credit) works like a credit card with a variable rate - you draw what you need, when you need it. HELOCs offer more flexibility but come with rate risk.
Is a home equity loan tax-deductible?
Interest on home equity loans is tax-deductible if the funds are used to buy, build, or substantially improve the home that secures the loan. Using the funds for debt consolidation, education, or other purposes means the interest is generally not deductible. Always consult a tax professional for your specific situation.
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