Home Equity Loan & HELOC Calculator (Payment & Borrowing Limit)
See how much equity you can borrow against and what a home equity loan or HELOC would cost each month. Most lenders allow a combined loan-to-value (CLTV) of up to 80% to 85%. Example: a $400,000 home with a $220,000 mortgage and an 85% CLTV limit has $120,000 of borrowable equity; a $50,000 loan at 8.25% for 15 years costs about $485 a month.
Show steps
How to use the Home Equity Loan and HELOC Calculator
- Enter your home value and what you still owe on your mortgage.
- Set the maximum CLTV your lender allows (80% to 85% is common).
- Enter the amount you want to borrow, the interest rate and the term.
- Choose a fixed home equity loan or a HELOC in its interest-only draw period, then press Calculate.
Formula and method
Borrowable equity = Home value × Max CLTV − Mortgage balance
Home equity loan payment = P × r / (1 − (1 + r)−n). A HELOC in its draw period often charges only interest: Payment = Balance × annual rate / 12. HELOC rates are usually variable, so the payment can change.
Frequently asked questions
What is the difference between a home equity loan and a HELOC?
A home equity loan gives you a lump sum at a fixed rate with fixed payments. A HELOC is a revolving line of credit with a variable rate, usually interest-only for the first 10 years of the draw period.
How much can I borrow against my home?
Most lenders cap your combined mortgage and new loan at 80% to 85% of the home value, depending on credit score and income.
What are the risks?
Your home secures the loan. If you cannot pay, the lender can foreclose. HELOC payments also rise when rates rise or when the draw period ends.
Is the interest tax deductible?
Only when the money is used to buy, build or substantially improve the home that secures the loan. Ask a tax professional.
Sources
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