How the Home Equity Loan Calculator works
Estimate available home equity and loan payments. Adjust the inputs above, then use the calculate button to generate a fresh estimate based on the numbers you entered.
The result is designed to give you a quick planning number, plus a short breakdown of the major figures behind it. You can reset the form at any time and try a different scenario.
When to use this calculator
Use this home equity loan calculator to estimate how much equity may be available and what a fixed repayment loan could cost. It is useful when considering renovations, debt consolidation or another large expense secured by your home.
Formula
Available equity = home value x maximum LTV - mortgage balance
- Home value is the estimated current property value.
- Maximum LTV is the combined loan-to-value limit.
- Mortgage balance reduces the equity available for new borrowing.
Worked example
For a $650,000 home, a $350,000 mortgage and an 80% maximum LTV, the calculator estimates available equity and the payment on a selected loan amount.
Common mistakes
- Borrowing the full available amount without testing the monthly payment.
- Using an outdated home value estimate.
- Ignoring fees, appraisal costs or changes in qualification rules.
FAQs
Is available equity the same as approved borrowing?
No. Lenders also review income, credit, debt levels and property details.
How is a home equity loan different from a HELOC?
A home equity loan usually has a fixed amount and repayment schedule, while a HELOC is revolving credit.
Can borrowing against equity be risky?
Yes. The debt is secured by your home, so payments should fit comfortably in your budget.