Home Equity Loan Calculator

This home equity loan calculator will provide you with your monthly home equity loan payment amount based on your inputs. Additionally, you can also view a full amortization schedule and a dynamic line chart that visualizes your remaining loan balance over time. As you make changes to the terms of your loan, the payment and other results are updated instantly. For more information on how this calculator works, see the help guide below.

Need to know how much you might be eligible to borrow? – use our Loan To Value Calculator.

Monthly Payment
Total Interest Paid Over the Life of the Loan

See amortization schedule

Frequently Asked Questions About Home Equity Loans

What is a Home Equity Loan?

A home equity loan is a type of loan in which the borrower uses the equity of their home as collateral. The loan amount is determined based on the value of the property and the amount of equity the homeowner has.

How Does a Home Equity Loan Work?

When you take out a home equity loan, you receive a lump sum of money upfront, which you then pay back over a set period with fixed monthly payments. The interest rate on these loans is typically fixed.

What Can a Home Equity Loan Be Used For?

Home equity loans can be used for various purposes, including home renovations, consolidating debt, paying for education, or as a financial resource for emergencies.

How Do I Qualify for a Home Equity Loan?

To qualify for a home equity loan, you need to have sufficient equity in your home, a stable income, a good credit history, and a reasonable debt-to-income ratio.

What is the Difference Between a Home Equity Loan and a HELOC?

A home equity loan provides a lump sum at a fixed interest rate, whereas a Home Equity Line of Credit (HELOC) offers a credit line from which you can draw funds as needed, usually with a variable interest rate. If you are considering a HELOC. We also have a HELOC Calculator.

Are There Risks to Taking a Home Equity Loan?

The primary risk is that if you default on the loan, you could lose your home since it serves as collateral. It’s important to borrow only what you need and be sure you can meet the repayment terms.

How Much Can I Borrow with a Home Equity Loan?

Typically, lenders allow you to borrow up to 75-85% of your home’s value minus any existing mortgages. The exact amount varies based on your lender, creditworthiness, and other factors. You can use our Loan To Value calculator to get an idea of how much you might be able to borrow.

Does a Home Equity Loan Affect My Credit Score?

Applying for a home equity loan can affect your credit score since the lender will perform a hard inquiry. However, responsible repayment can positively impact your credit score over time.

What Are the Interest Rates for Home Equity Loans?

Interest rates for home equity loans vary depending on market conditions, your credit score, loan amount, and loan term. They are generally lower than rates on credit cards and personal loans since the loan is secured.

Can I Deduct Home Equity Loan Interest on My Taxes?

Interest on home equity loans is potentially tax-deductible if you use the loan to buy, build, or substantially improve the taxpayer’s home that secures the loan. However, it’s important to consult with a tax professional for your specific situation.

What Are the Costs and Fees Associated with Getting a Home Equity Loan?

Home equity loans come with various costs and fees, which can vary depending on the lender and your specific circumstances. Here’s a breakdown of common costs:

  • Appraisal Fee: To determine the current value of your home, lenders often require an appraisal, which can cost several hundred dollars.
  • Origination Fee: Some lenders charge an origination fee for processing a new loan, which is typically a percentage of the loan amount.
  • Closing Costs: Similar to when you purchased your home, home equity loans can have closing costs, including title search, attorney fees, and document preparation fees. These can amount to 2-5% of the loan amount.
Home Equity Calculator Help Guide


Loan Amount: The total amount of money being borrowed.

Loan Term (in years): The duration over which the loan will be repaid, expressed in years.

Interest Rate (%): The annual interest rate for the loan, entered as a percentage.


Monthly Payment: This is the amount that needs to be paid each month towards the loan. It is calculated based on the loan amount, term, and interest rate.

Total Interest Paid Over the Life of the Loan: This output shows the total amount of interest that will be paid over the entire loan term.

Amortization Schedule: Displayed in a table format, this schedule provides a month-by-month breakdown showing how each payment is divided into principal and interest, and it also shows the remaining balance after each payment.

Line Chart: Visualizes the remaining loan balance over the term of the loan. This chart updates dynamically as the inputs change.