Home Equity Loan Calculator

Estimate your home equity loan payment, total interest, and APR, and how much equity you can borrow.

Updated

What will my home equity loan cost?

Monthly payment

$1,187.02

Total of 120 payments
$142,442.12
Total interest
$42,442.12

Total cost breakdown

Loan amount: $100,000.00 (70%)Interest: $42,442.12 (30%)
  • Loan amount: $100,000.00 (70%)
  • Interest: $42,442.12 (30%)

Loan balance and cumulative payments

$0$71K$142KYear 0: Balance $100,000.00Year 1: Balance $93,019.06Year 2: Balance $85,496.17Year 3: Balance $77,389.25Year 4: Balance $68,652.98Year 5: Balance $59,238.48Year 6: Balance $49,093.12Year 7: Balance $38,160.14Year 8: Balance $26,378.41Year 9: Balance $13,682.03Year 10: Balance $0.00Year 0: Interest $0.00Year 1: Interest $7,263.27Year 2: Interest $13,984.59Year 3: Interest $20,121.89Year 4: Interest $25,629.83Year 5: Interest $30,459.55Year 6: Interest $34,558.39Year 7: Interest $37,869.63Year 8: Interest $40,332.11Year 9: Interest $41,879.94Year 10: Interest $42,442.12Year 0: Payment $0.00Year 1: Payment $14,244.21Year 2: Payment $28,488.42Year 3: Payment $42,732.64Year 4: Payment $56,976.85Year 5: Payment $71,221.06Year 6: Payment $85,465.27Year 7: Payment $99,709.49Year 8: Payment $113,953.70Year 9: Payment $128,197.91Year 10: Payment $142,442.12010 years
  • Balance
  • Interest
  • Payment

Amortization schedule

YearInterestPrincipalEnding balance
1$7,263.27$6,980.94$93,019.06
2$6,721.32$7,522.89$85,496.17
3$6,137.30$8,106.91$77,389.25
4$5,507.94$8,736.27$68,652.98
5$4,829.72$9,414.49$59,238.48
6$4,098.85$10,145.37$49,093.12
7$3,311.24$10,932.98$38,160.14
8$2,462.48$11,781.73$26,378.41
9$1,547.83$12,696.38$13,682.03
10$562.18$13,682.03$0.00

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How this home equity loan calculator works

Enter the loan amount, the fixed interest rate, and the term in years. The home equity loan calculator finds the monthly payment that pays off the loan in equal installments, then shows the total of all payments, the total interest, and a full amortization schedule. Turn on closing costs to see the cash you actually receive, the total cost of the loan, and the APR.

For example, a $100,000 home equity loan at 7.5% for 10 years has a monthly payment of $1,187.02. Over 120 payments you repay $142,442.12, of which $42,442.12 is interest. With $3,000 in closing costs, the APR is 8.197%.

Home equity loan payment calculation

A home equity loan, also called a second mortgage, is usually a fixed-rate installment loan, so the payment is figured the same way as a mortgage payment. With loan amount P, monthly rate r (the annual rate ÷ 12), and n monthly payments:

Monthly payment = P × r ÷ [1 − (1 + r)−n]

Early payments are mostly interest. As the balance falls, more of each payment goes to principal, which the amortization schedule shows month by month or year by year.

Home equity loan closing costs and APR

Lenders often charge upfront fees such as appraisal, origination, and title fees. Enter them as a dollar amount or a percentage of the loan, and choose whether they are taken out of the loan or paid upfront. Either way, you borrow the full loan amount but keep less of it, so the APR, which spreads the closing costs over the life of the loan, is higher than the interest rate. Compare APRs, not just home equity loan rates, when choosing between offers.

The calculator includes every dollar you enter in the APR. The APR a lender discloses on its Loan Estimate does not count everything: for loans secured by a home, reasonable fees for title work, appraisals and inspections, document preparation, notary services, and credit reports are left out. So:

  • To compare with a lender's APR, enter only the fees it counts, such as origination fees and points.
  • To see the full cost of the loan and the cash you will actually receive, enter all of your closing costs. The APR shown will then be higher than the lender's.

Frequently asked questions

How much home equity can I borrow?

Lenders usually let your mortgage and home equity loan together reach 80% to 90% of your home's value. Multiply your home's value by that limit and subtract what you owe on your mortgage. A $450,000 home with a $180,000 mortgage and an 85% limit leaves up to $202,500. Use the "How Much Can I Borrow?" tab to try your own numbers.

Is this a home equity calculator or a loan payment calculator?

Both. The "Loan Payment" tab is a home equity loan payment calculator that gives the monthly payment and total cost. The "How Much Can I Borrow?" tab works as a home equity calculator and LTV calculator: it shows your current loan-to-value ratio and how much equity you may be able to borrow against.

What is a loan-to-value (LTV) ratio?

LTV is the amount you owe on your home divided by its current value. Owing $180,000 on a $450,000 home is an LTV of 40%. Your equity is the rest: the value minus what you owe.

Does this work as a HELOC calculator?

Not exactly. A home equity line of credit usually has a variable rate and an interest-only draw period, while a home equity loan pays out a lump sum at a fixed rate. Use this calculator for a fixed-rate home equity loan or a HELOC you plan to repay in equal payments at a fixed rate.

Limitations

The calculator assumes a fixed rate, equal monthly payments, and no early payoff. The borrowing estimate uses only your home's value, mortgage balance, and the lender's LTV limit. Lenders also review your credit score, income, and other debts, and many set a maximum dollar amount. Your home secures the loan, so missed payments can lead to foreclosure. Treat the results as estimates, not financial advice.

What's changed
  • Fixed the amortization schedule at very high interest rates, where principal could stay unpaid until the last payment.
  • Launched.

References