Calculate Home Equity Details
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About Home Equity Loan Calculator
Calculate home equity loan payments, total interest, and how much you can borrow based on your home value.
Key Factors in Home Equity
When evaluating home equity options, consider:
- Current interest rates and market conditions
- Your credit score and qualification requirements
- Total cost of ownership including fees and insurance
- Long-term financial goals and flexibility needs
Expert Tips
- Compare multiple lenders to find the best rates
- Calculate total interest paid over the loan term
- Consider how changing rates affect your payment
- Factor in property taxes and homeowners insurance
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Frequently Asked Questions
How is a home equity loan payment calculated?
A home equity loan (HEL) is a fixed-rate, fixed-term installment loan against your home equity. Monthly payment uses standard amortization: M = P × r × (1+r)^n / ((1+r)^n − 1). For a $50,000 HEL at 7.36% (Bankrate national 15-year fixed average, week ending June 3, 2026) over 15 years, the payment is about $458. The calculator returns principal and interest; closing costs typically run 2%–5% of the loan and are paid at origination.
How is a home equity loan different from a HELOC?
A HEL gives you a single lump sum at a fixed rate with fixed payments — best for a known one-time expense like a kitchen renovation with a contractor estimate. A HELOC is a revolving line of credit with a variable rate (typically prime plus a margin) and interest-only payments during a 10-year draw period — best for uncertain or phased expenses. HELs win on rate predictability; HELOCs win on flexibility.
Is home equity loan interest tax deductible?
Under the Tax Cuts and Jobs Act (IRC § 163(h)(3)(F)), interest on home equity debt is deductible only if the proceeds are used to buy, build, or substantially improve the home that secures the loan, subject to the $750,000 acquisition-debt cap ($375,000 if married filing separately). Interest on HEL proceeds used for debt consolidation, cars, education, or other personal expenses is not deductible. Since 90% of taxpayers now take the standard deduction, the deduction is moot for most filers anyway.
How much can I borrow with a home equity loan?
Most lenders cap combined loan-to-value (CLTV) at 80%–85%. CLTV = (first mortgage balance + HEL amount) ÷ home value. On a $400,000 home with a $250,000 first mortgage, an 85% CLTV cap allows up to $90,000 in HEL: $400,000 × 0.85 = $340,000 total liens minus $250,000 first equals $90,000 available. Some specialty lenders go to 90% or 95% CLTV but charge significantly higher rates.
What is the right of rescission on a home equity loan?
Under the Truth in Lending Act and CFPB Regulation Z § 1026.23, you have three business days after closing to cancel a home equity loan secured by your principal residence with no penalty. The lender must give you two copies of a notice of right to cancel; if they fail to deliver proper disclosures, the rescission window extends to three years. Rescission does not apply to purchase loans or to investment-property loans.