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Home Equity Loan Calculator

Estimate a home equity loan's monthly payment, total interest, APR after closing costs, and how much you may be able to borrow against your home.

Fixed monthly principal-and-interest payment. Optionally include closing costs for cash received, total cost, and APR.

ExampleSample values — edit any field to see your result.

$

The lump sum you want to borrow. Home equity loans disburse the full amount at closing.

%

Typical home equity loans have a fixed rate. This calculator uses a constant rate so you can compare offers.

years

Years to repay. Common home equity loan terms are 5–30 years; 10–15 is typical.

Results update as you type.

Monthly Pay

$1,433.48

Estimated result

Total of Loan Payments
$258,026.06
Total Interest
$108,026.06

Loan vs interest

Loan amount 58%, Interest 42%
  • Loan amount58%
  • Interest42%

Amortization schedule

PeriodInterestPrincipalEnding Balance
Year 1$11,804.97$5,396.77$144,603.23
Year 2$11,357.04$5,844.70$138,758.53
Year 3$10,871.93$6,329.81$132,428.72
Year 4$10,346.56$6,855.18$125,573.54
Year 5$9,777.58$7,424.15$118,149.39
Year 6$9,161.38$8,040.36$110,109.03
Year 7$8,494.04$8,707.70$101,401.33
Year 8$7,771.30$9,430.44$91,970.90
Year 9$6,988.58$10,213.16$81,757.74
Year 10$6,140.89$11,060.84$70,696.90
Year 11$5,222.85$11,978.89$58,718.01
Year 12$4,228.61$12,973.13$45,744.88
Year 13$3,151.84$14,049.89$31,694.98
Year 14$1,985.71$15,216.03$16,478.95
Year 15$722.79$16,478.95$0.00
Monthly Pay$1,433.48

Estimate the cost of a home equity loan (a lump-sum second mortgage). Enter the amount, rate, and term for the monthly payment, total interest, and a year-by-year schedule. Open Closing costs to fold in origination and other fees — the calculator then reports cash received, total cost, and APR. The How much tab sizes the loan from your home's value, remaining mortgage, and lender LTV.

Formula

The contractual payment amortizes the face loan amount. Monthly rate r is the annual rate ÷ 12; n is years × 12:

payment = P × r / (1 − (1 + r)^(−n))

Total of payments is payment × n. Total interest is that sum minus P. Closing does not change P — a deducted $7,500 fee on a $150,000 loan still amortizes $150,000. You simply receive $142,500.

When fees are on, cost of loan is total interest + closing. APR is the IRR of the rounded monthly payment against net proceeds (loan − closing), annualized as 12 × monthly IRR and rounded to three decimals.

The amount you may qualify for is:

max home equity loan = round(home value × LTV − mortgage balance)

A home equity loan uses your house as collateral. Budget the full monthly payment — and compare APR across lenders — before you tap equity.

Default example ($150,000 at 8%)

ResultAmount
Monthly pay$1,433.48
Total of 180 loan payments$258,026.06
Total interest$108,026.06

With $7,500 closing deducted from the loan, cash received is $142,500, cost of loan is $115,526.06, and APR is 8.860%. Paying the same closing upfront hides cash received; the payment, cost, and APR stay the same.

Examples

Fixed payment on a 15-year second mortgage

A $150,000 home equity loan at 8% for 15 years. Monthly rate is 0.08 / 12. The amortizing payment is $1,433.48. Over 180 months you repay $258,026.06, of which $108,026.06 is interest. Month 1 is $1,000.00 interest and $433.48 principal.

How much can I borrow?

A home worth $600,000 with $250,000 still owed on the first mortgage, at a lender cap of 80% combined LTV: $600,000 × 80% − $250,000 = $230,000. Current LTV is 41.7%. If the remaining mortgage already uses 80% or more of the home's value, a home equity loan usually will not be approved on equity alone.

Frequently asked questions

How is a home equity loan payment calculated?
A home equity loan is a fully amortizing installment loan. For principal P, monthly rate r (the annual rate divided by 12), and n months, the payment is P × r ÷ (1 − (1 + r)^−n). Closing costs do not change that contractual payment — they change how much cash you actually receive and the loan's real APR.
Why is home equity loan APR higher than the interest rate?
The note rate prices only the balance. APR is the internal rate of return of the monthly payment against what you actually receive after closing costs. A $7,500 closing cost on a $150,000 loan at 8% for 15 years raises APR to 8.860%. Rank offers by APR, not the advertised rate.
How much home equity can I borrow?
Most lenders cap combined loan-to-value at about 80% of the home's value. A $600,000 house with a $250,000 first mortgage at 80% LTV supports about $230,000 ($600,000 × 80% − $250,000). Credit score (often 630+), debt-to-income (often under 43%), and a typical $1 million loan cap can still reduce that number.
How does a home equity loan differ from a HELOC or cash-out refinance?
A home equity loan (second mortgage) is a lump sum with a fixed payment and, usually, a fixed rate. A HELOC is a revolving line: you draw what you need, typically at a variable rate, with interest-only payments during a draw period. A cash-out refinance replaces your first mortgage with a larger loan and pays you the difference — useful when today's first-lien rate is lower than the mortgage you already have.
Are home equity loan interest payments tax-deductible?
Not always. Interest on a home equity loan or HELOC used to buy, build, or substantially improve the home that secures it may be deductible if you itemize; using the proceeds for other spending often is not. Tax rules change — check current IRS guidance or a tax professional.
What are typical closing costs on a home equity loan?
Origination, appraisal, title, and document fees often total 2–5% of the loan, or several thousand dollars. They can be paid at closing or rolled into the loan. No-closing-cost offers usually charge a higher rate and may penalize early payoff. This calculator can include those fees so APR reflects the true cost.

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