About the Home Equity Loan Calculator
Your home equity is the part of your home's value that you own, which is the value minus what you still owe on your mortgage. A home equity loan lets you borrow against that equity and repay it in fixed monthly payments. This home equity loan calculator shows your equity and how much of the home's value it represents, estimates the most you could borrow if your lender limits total borrowing to a percentage of the home's value, and works out the payment, total interest and cost of the amount you want. It also shows the new combined loan-to-value ratio, which lenders use to decide whether to approve you.
Updated October 2026
How to use the Home Equity Loan Calculator
- 1Enter the current value of your home and what you still owe on your mortgage.
- 2Enter the highest total loan-to-value your lender allows, often 80 to 90 percent.
- 3Enter the amount you want to borrow, the interest rate, the term and any fees.
- 4Read your equity and the most you might borrow.
- 5Check the monthly payment, total interest and the new loan-to-value.
A worked example
A home valued at 450,000 with 280,000 owed has 170,000 of equity. At an 85 percent combined limit, you might borrow up to 102,500. For 50,000 over 15 years at 8.25 percent, the payment is about 485 a month and the total interest about 37,300. The combined loan-to-value rises from 62 percent to about 73 percent, within the limit.
Good reasons and risky reasons to borrow
- Home improvements that raise the value of the property
- Replacing high-interest debt, if you stop borrowing more
- Education or a business with a clear plan
- Avoid borrowing for holidays or things that lose value fast
- Keep a cushion in case your income drops
Related tools
The Refinance Calculator compares replacing your mortgage, the Mortgage Calculator and Amortization Calculator show payment schedules, the Loan Calculator covers any loan, the Debt Consolidation Calculator tests using a loan to clear debts and the House Affordability Calculator helps with buying. Check actual terms with a lender, because rates, limits and fees differ.
Features
- Equity in pounds, dollars or any currency
- Highest amount you may be able to borrow
- Combined loan-to-value before and after
- Fixed monthly payment
- Total interest and total cost with fees
- Warning if you ask for more than the limit
- Runs in your browser
Frequently asked questions
How do I calculate my home equity?
Subtract what you owe on all loans secured against the home from its current market value. If your home is worth 450,000 and you owe 280,000, your equity is 170,000, which is about 38 percent of the value. A recent valuation or appraisal gives a better figure than an online estimate.
How much can I borrow against my home?
Lenders usually let your total borrowing, including the existing mortgage, reach 80 to 90 percent of the home's value. On a 450,000 home at 85 percent that is 382,500, so with 280,000 owed you could borrow up to 102,500, subject to your credit and income.
What is loan-to-value?
Loan-to-value, or LTV, is the total borrowing against the home divided by its value, as a percentage. A lower LTV means a safer loan for the lender and a better rate for you. The calculator shows it before and after the new loan.
What is the difference between a home equity loan and a HELOC?
A home equity loan gives you a lump sum with a fixed rate and fixed payments. A home equity line of credit, or HELOC, works like a credit card secured on your home: you borrow as needed, usually at a variable rate, and may pay only interest at first. This calculator models the fixed loan.
What are the risks?
Your home secures the loan, so if you cannot keep up the payments you could lose it. Prices can also fall, leaving you owing more than the home is worth. Borrow only for purposes that make sense, such as improvements that add value, and keep payments affordable.
Are there fees?
Often yes: application, valuation, legal and closing fees can add up to 2 to 5 percent of the loan. Enter them in the fees box to see the total cost, and compare the annual percentage rate between lenders, not only the interest rate.