Calculate your available home equity, maximum borrowing limit, and monthly payment on a fixed home equity loan.
Your Home
Loan Details
Max available at 80% CLTV: $70,000
Equity & Payment Summary
The Home Equity Loan Calculator shows how much equity you've built in your home, the maximum amount most lenders would let you borrow against it, and the monthly payment on a fixed-rate home equity loan for the amount you choose.
Home equity is the portion of your home you truly own — its current value minus what you still owe on your mortgage. Lenders typically cap total borrowing (your mortgage plus a new home equity loan) at 80-85% of your home's value, known as the combined loan-to-value ratio (CLTV). This calculator applies an 80% CLTV limit and then runs standard amortization on your chosen loan amount.
Max Loan = (Home Value × 80%) − Mortgage Balance, then M = P × [r(1+r)ⁿ] / [(1+r)ⁿ − 1]First, the calculator finds your borrowing ceiling at 80% combined loan-to-value. Then it applies the standard amortization formula to whatever loan amount you select (capped at that ceiling) to compute your fixed monthly payment.
Example 1: $400,000 home, $250,000 mortgage, $50,000 equity loan at 8.5% for 10 years
Equity = $400,000 − $250,000 = $150,000. Max loan at 80% CLTV = $320,000 − $250,000 = $70,000, so the requested $50,000 fits within the limit.
Monthly payment ≈ $620.20 — total interest ≈ $24,424, total repaid ≈ $74,424. Resulting CLTV = 75%.
Example 2: Borrowing the maximum available ($70,000) at the same rate and term
Same $400,000 home and $250,000 mortgage, but the homeowner borrows the full $70,000 available at 80% CLTV.
Monthly payment ≈ $868.28 — total interest ≈ $34,193.60, pushing CLTV to exactly 80%.
Example 3: $30,000 HELOC-style loan at 9.0% for 5 years
A smaller, shorter-term loan — common for a kitchen remodel or debt consolidation — at a slightly higher variable-equivalent rate.
Monthly payment ≈ $622.75 — total interest ≈ $7,365, total repaid ≈ $37,365.
Methodology
Available equity = home value − mortgage balance. Max loan = (home value × 80% LTV) − mortgage. Monthly payment via standard loan formula M = P×r(1+r)^n / [(1+r)^n−1].
Most lenders allow you to borrow up to 80–85% of your home's value minus your outstanding mortgage balance. This is called the combined loan-to-value (CLTV) limit. Example: $400K home, $250K mortgage → max equity loan = $320K − $250K = $70K.
A home equity loan gives you a lump sum at a fixed rate — predictable payments, good for large one-time expenses. A HELOC is a revolving line of credit at a variable rate — flexible for ongoing needs. This calculator models a fixed home equity loan.
Since the 2017 Tax Cuts and Jobs Act, interest is only deductible if the loan is used to buy, build, or substantially improve the home securing the loan. Using equity for debt consolidation or other purposes is generally not deductible.
Disclaimer: Calculations are for informational purposes only and do not constitute professional financial advice. Please consult with a certified professional before making financial decisions.