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Home Equity Loan Calculator: How Much Can I Borrow?

This home equity loan calculator works out how much you can borrow: your home’s value times the lender’s combined loan-to-value cap, minus what you still owe.

Example numbers

15 years

Result

The answerfrom an example

You can borrow up to $122,500. A $75,000 loan at 8.50% costs $738.55 a month for 15 years.

Worked on $450,000 home with $260,000 owed, an 85% CLTV cap and a $75,000 loan at 8.5% over 15 years. Change anything below to use yours.

Borrowing limit
$122,500
Monthly payment
$738.55
Total interest
$57,940.66

The figures behind it

Borrowing limit
$122,500
Monthly payment
$738.55
Total interest
$57,940.66
Combined loan-to-value after the loan
74.44%
Everything owed on the home, this loan included, as a share of its value.
Equity left in the home
$115,000
Cap on all loans
$382,500
Home value times the CLTV cap you entered.
Your home’s value$450,000
  • Mortgage balance$260,000
  • This loan$75,000
  • Equity left$115,000
Payment scheduleShow
ItemAmount
Home value$450,000
CLTV cap85%
Cap on all loans$382,500
Mortgage balance$260,000
Borrowing limit$122,500
Loan priced$75,000
Interest rate8.50%
Term15 years
Monthly payment$738.55
Total interest$57,940.66
Total paid$132,940.66
CLTV after the loan74.44%
Equity left$115,000

What this result assumes

  • The cap you enter is the lender’s, not a law. Each lender sets its own maximum, so use the figure from your quote.
  • Closing costs and fees are not included. To see what fees do to the true cost, use the APR calculator.
  • The payment is a fixed-rate level payment, the same as the loan calculator gives for the same amount.

On a $450,000 home with $260,000 owed and an 85% cap, that is $122,500. It then prices the fixed monthly payment on the amount you choose.

Methodology

Reviewed by Acun Özdilek

How the borrowing limit is worked out

Lenders cap the total of all loans on a home at a share of its value. That share is the combined loan-to-value (CLTV) ratio: your mortgage plus any other loans secured by the home, divided by its value. The most you can borrow is the home’s value times the lender’s cap, minus what you already owe.

On a $450,000 home with an 85% cap, all loans together can reach $382,500. With $260,000 still owed, that leaves $122,500. If you ask for more, the calculator prices the $122,500 limit instead. If the room left is under $1,000, it prices nothing.

How the payment is worked out

A home equity loan is paid out as one lump sum and repaid in equal monthly payments at a fixed rate. The payment uses the standard level-payment formula, with interest rounded to the cent each month, so it matches the loan calculator for the same amount.

A HELOC works differently: you draw on a line of credit as you need it and often pay only interest at first.

A second loan, not a new mortgage

A home equity loan sits behind your mortgage, which keeps its rate and payment. To replace the mortgage instead, the refinance calculator compares the old and new loans. Cash-out refinancing is not modelled here.

For your full monthly housing cost with property tax and insurance, use the mortgage calculator.

Assumptions

  • The rate is fixed and every payment is made on time for the full term.
  • The CLTV cap you enter is the lender’s, and lenders differ.
  • The home value is the figure the lender uses, usually an appraisal, not a list price.
  • The balance you owe includes every loan secured by the home. If you already have a HELOC, enter what the lender counts for it: some count the whole credit line, not just what you have drawn.
  • Closing costs, fees, credit-score pricing, debt-to-income checks, loan-size limits and lender overlays are not applied. The APR calculator shows what fees add to the true cost.
  • No tax effect is modelled.

Sources

Common questions

How much can I borrow with a home equity loan?

Take your home’s value, multiply it by the lender’s combined loan-to-value cap, and subtract what you owe. On a $450,000 home with $260,000 owed and an 85% cap, that is $122,500. The cap varies by lender, so use the one from your quote.

What is combined loan-to-value (CLTV)?

It is everything owed on the home, divided by the home’s value. After a $75,000 loan on a $450,000 home with $260,000 already owed, it is 74.44%. Borrowing the full $122,500 would take it to the 85% cap.

What is the difference between a home equity loan and a HELOC?

A home equity loan pays you one lump sum and you repay it in fixed monthly payments. A HELOC is a line of credit you draw on during a draw period and then repay. The HELOC calculator works through the draw and repayment periods.

Does a home equity loan replace my mortgage?

No. It is a second loan, and your mortgage keeps its rate and payment. Refinancing is what replaces the first loan; the refinance calculator compares the two.

Can I lose my home if I can’t repay a home equity loan?

Yes. The home secures the loan, so if you stop paying, the lender can foreclose. The CFPB’s booklet on home equity credit warns that you could lose your home. The calculator shows the monthly payment, the number to weigh against your budget before borrowing.

Why does the calculator say I can borrow nothing?

You already owe as much as the lender’s cap allows, or more. With an 85% cap on a $450,000 home, all loans together can reach $382,500, so if you owe $390,000 there is no room left. A lower balance, a higher home value or a lender with a higher cap would change that.

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