Financial · Live
Home Equity Loan Calculator,
payment & CLTV.
Enter your home value, existing mortgage balance, desired loan amount, rate, and term to see your exact monthly payment, total interest, Combined LTV, and a full amortization schedule — instantly, as you type.
Inputs
Your home & loan
Your home
Loan details
Fixed-rate, fully-amortizing loan. Interest decreases each month as the principal falls. Pre-tax; excludes closing costs, insurance, and origination fees.
Monthly payment
10-year term
- Total interest
- $24,391.29
- Total cost
- $74,391.29
- CLTV
- 67.5%
- Equity left
- $130,000.00
Equity structure
How your home value is allocated
Current equity
$180,000.00
45% of home
CLTV after loan
67.5%
≤ 80% — lender-friendly
Equity after loan
$130,000.00
32.5% of home
Balance chart
Remaining loan balance
Schedule
Month-by-month amortization
| Month | Payment | Interest | Principal | Balance |
|---|---|---|---|---|
| M1 | $619.93 | $354.17 | $265.76 | $49,734.24 |
| M2 | $619.93 | $352.28 | $267.65 | $49,466.59 |
| M3 | $619.93 | $350.39 | $269.54 | $49,197.05 |
| M4 | $619.93 | $348.48 | $271.45 | $48,925.60 |
| M5 | $619.93 | $346.56 | $273.37 | $48,652.23 |
| M6 | $619.93 | $344.62 | $275.31 | $48,376.92 |
| M7 | $619.93 | $342.67 | $277.26 | $48,099.66 |
| M8 | $619.93 | $340.71 | $279.22 | $47,820.44 |
| M9 | $619.93 | $338.73 | $281.20 | $47,539.24 |
| M10 | $619.93 | $336.74 | $283.19 | $47,256.05 |
| M11 | $619.93 | $334.73 | $285.20 | $46,970.85 |
| M12 | $619.93 | $332.71 | $287.22 | $46,683.63 |
| M13 | $619.93 | $330.68 | $289.25 | $46,394.38 |
| M14 | $619.93 | $328.63 | $291.30 | $46,103.08 |
| M15 | $619.93 | $326.56 | $293.37 | $45,809.71 |
| M16 | $619.93 | $324.49 | $295.44 | $45,514.27 |
| M17 | $619.93 | $322.39 | $297.54 | $45,216.73 |
| M18 | $619.93 | $320.29 | $299.64 | $44,917.09 |
| M19 | $619.93 | $318.16 | $301.77 | $44,615.32 |
| M20 | $619.93 | $316.03 | $303.90 | $44,311.42 |
| M21 | $619.93 | $313.87 | $306.06 | $44,005.36 |
| M22 | $619.93 | $311.70 | $308.23 | $43,697.13 |
| M23 | $619.93 | $309.52 | $310.41 | $43,386.72 |
| M24 | $619.93 | $307.32 | $312.61 | $43,074.11 |
| M25 | $619.93 | $305.11 | $314.82 | $42,759.29 |
| M26 | $619.93 | $302.88 | $317.05 | $42,442.24 |
| M27 | $619.93 | $300.63 | $319.30 | $42,122.94 |
| M28 | $619.93 | $298.37 | $321.56 | $41,801.38 |
| M29 | $619.93 | $296.09 | $323.84 | $41,477.54 |
| M30 | $619.93 | $293.80 | $326.13 | $41,151.41 |
| M31 | $619.93 | $291.49 | $328.44 | $40,822.97 |
| M32 | $619.93 | $289.16 | $330.77 | $40,492.20 |
| M33 | $619.93 | $286.82 | $333.11 | $40,159.09 |
| M34 | $619.93 | $284.46 | $335.47 | $39,823.62 |
| M35 | $619.93 | $282.08 | $337.85 | $39,485.77 |
| M36 | $619.93 | $279.69 | $340.24 | $39,145.53 |
| M37 | $619.93 | $277.28 | $342.65 | $38,802.88 |
| M38 | $619.93 | $274.85 | $345.08 | $38,457.80 |
| M39 | $619.93 | $272.41 | $347.52 | $38,110.28 |
| M40 | $619.93 | $269.95 | $349.98 | $37,760.30 |
| M41 | $619.93 | $267.47 | $352.46 | $37,407.84 |
| M42 | $619.93 | $264.97 | $354.96 | $37,052.88 |
| M43 | $619.93 | $262.46 | $357.47 | $36,695.41 |
| M44 | $619.93 | $259.93 | $360.00 | $36,335.41 |
| M45 | $619.93 | $257.38 | $362.55 | $35,972.86 |
| M46 | $619.93 | $254.81 | $365.12 | $35,607.74 |
| M47 | $619.93 | $252.22 | $367.71 | $35,240.03 |
| M48 | $619.93 | $249.62 | $370.31 | $34,869.72 |
| M49 | $619.93 | $246.99 | $372.94 | $34,496.78 |
| M50 | $619.93 | $244.35 | $375.58 | $34,121.20 |
| M51 | $619.93 | $241.69 | $378.24 | $33,742.96 |
| M52 | $619.93 | $239.01 | $380.92 | $33,362.04 |
| M53 | $619.93 | $236.31 | $383.62 | $32,978.42 |
| M54 | $619.93 | $233.60 | $386.33 | $32,592.09 |
| M55 | $619.93 | $230.86 | $389.07 | $32,203.02 |
| M56 | $619.93 | $228.10 | $391.83 | $31,811.19 |
| M57 | $619.93 | $225.33 | $394.60 | $31,416.59 |
| M58 | $619.93 | $222.53 | $397.40 | $31,019.19 |
| M59 | $619.93 | $219.72 | $400.21 | $30,618.98 |
| M60 | $619.93 | $216.88 | $403.05 | $30,215.93 |
| M61 | $619.93 | $214.03 | $405.90 | $29,810.03 |
| M62 | $619.93 | $211.15 | $408.78 | $29,401.25 |
| M63 | $619.93 | $208.26 | $411.67 | $28,989.58 |
| M64 | $619.93 | $205.34 | $414.59 | $28,574.99 |
| M65 | $619.93 | $202.41 | $417.52 | $28,157.47 |
| M66 | $619.93 | $199.45 | $420.48 | $27,736.99 |
| M67 | $619.93 | $196.47 | $423.46 | $27,313.53 |
| M68 | $619.93 | $193.47 | $426.46 | $26,887.07 |
| M69 | $619.93 | $190.45 | $429.48 | $26,457.59 |
| M70 | $619.93 | $187.41 | $432.52 | $26,025.07 |
| M71 | $619.93 | $184.34 | $435.59 | $25,589.48 |
| M72 | $619.93 | $181.26 | $438.67 | $25,150.81 |
| M73 | $619.93 | $178.15 | $441.78 | $24,709.03 |
| M74 | $619.93 | $175.02 | $444.91 | $24,264.12 |
| M75 | $619.93 | $171.87 | $448.06 | $23,816.06 |
| M76 | $619.93 | $168.70 | $451.23 | $23,364.83 |
| M77 | $619.93 | $165.50 | $454.43 | $22,910.40 |
| M78 | $619.93 | $162.28 | $457.65 | $22,452.75 |
| M79 | $619.93 | $159.04 | $460.89 | $21,991.86 |
| M80 | $619.93 | $155.78 | $464.15 | $21,527.71 |
| M81 | $619.93 | $152.49 | $467.44 | $21,060.27 |
| M82 | $619.93 | $149.18 | $470.75 | $20,589.52 |
| M83 | $619.93 | $145.84 | $474.09 | $20,115.43 |
| M84 | $619.93 | $142.48 | $477.45 | $19,637.98 |
| M85 | $619.93 | $139.10 | $480.83 | $19,157.15 |
| M86 | $619.93 | $135.70 | $484.23 | $18,672.92 |
| M87 | $619.93 | $132.27 | $487.66 | $18,185.26 |
| M88 | $619.93 | $128.81 | $491.12 | $17,694.14 |
| M89 | $619.93 | $125.33 | $494.60 | $17,199.54 |
| M90 | $619.93 | $121.83 | $498.10 | $16,701.44 |
| M91 | $619.93 | $118.30 | $501.63 | $16,199.81 |
| M92 | $619.93 | $114.75 | $505.18 | $15,694.63 |
| M93 | $619.93 | $111.17 | $508.76 | $15,185.87 |
| M94 | $619.93 | $107.57 | $512.36 | $14,673.51 |
| M95 | $619.93 | $103.94 | $515.99 | $14,157.52 |
| M96 | $619.93 | $100.28 | $519.65 | $13,637.87 |
| M97 | $619.93 | $96.60 | $523.33 | $13,114.54 |
| M98 | $619.93 | $92.89 | $527.04 | $12,587.50 |
| M99 | $619.93 | $89.16 | $530.77 | $12,056.73 |
| M100 | $619.93 | $85.40 | $534.53 | $11,522.20 |
| M101 | $619.93 | $81.62 | $538.31 | $10,983.89 |
| M102 | $619.93 | $77.80 | $542.13 | $10,441.76 |
| M103 | $619.93 | $73.96 | $545.97 | $9,895.79 |
| M104 | $619.93 | $70.10 | $549.83 | $9,345.96 |
| M105 | $619.93 | $66.20 | $553.73 | $8,792.23 |
| M106 | $619.93 | $62.28 | $557.65 | $8,234.58 |
| M107 | $619.93 | $58.33 | $561.60 | $7,672.98 |
| M108 | $619.93 | $54.35 | $565.58 | $7,107.40 |
| M109 | $619.93 | $50.34 | $569.59 | $6,537.81 |
| M110 | $619.93 | $46.31 | $573.62 | $5,964.19 |
| M111 | $619.93 | $42.25 | $577.68 | $5,386.51 |
| M112 | $619.93 | $38.15 | $581.78 | $4,804.73 |
| M113 | $619.93 | $34.03 | $585.90 | $4,218.83 |
| M114 | $619.93 | $29.88 | $590.05 | $3,628.78 |
| M115 | $619.93 | $25.70 | $594.23 | $3,034.55 |
| M116 | $619.93 | $21.49 | $598.44 | $2,436.11 |
| M117 | $619.93 | $17.26 | $602.67 | $1,833.44 |
| M118 | $619.93 | $12.99 | $606.94 | $1,226.50 |
| M119 | $619.93 | $8.69 | $611.24 | $615.26 |
| M120 | $619.62 | $4.36 | $615.26 | $0.00 |
Monthly · 10yr
$619.93/mo
Total cost
$74,391
CLTV
67.5%
Complete guide
What is a home equity loan?
A home equity loan: also called a second mortgage or a fixed-rate equity loan — lets you borrow a lump sum against the equity you have built up in your home. You receive the full amount at closing and repay it in equal fixed monthly installments over a set term, typically 5 to 20 years. Because the loan is secured by your home, rates are substantially lower than unsecured personal loans or credit cards.
The equity is simply the difference between what your home is worth today and what you still owe on your mortgage:
Example: $400,000 home value − $220,000 mortgage = $180,000 equity
Lenders won't let you borrow your entire equity. Most cap the Combined Loan-to-Value (CLTV) at 80–85%, meaning the total of your first mortgage plus the new home equity loan cannot exceed 80–85% of your home's appraised value.
How the monthly payment is calculated
A home equity loan uses standard amortization, the same formula as a mortgage or car loan. The payment is fixed for the life of the loan, and each payment is split between interest on the outstanding balance and principal reduction:
n = term years × 12 (total payments)
PMT = loan × r × (1+r)ⁿ / ((1+r)ⁿ − 1)
Example: $50,000 at 8.5% for 10 years (120 months):
r = 0.085 ÷ 12 = 0.007083
PMT = 50,000 × 0.007083 × (1.007083)¹²⁰ / ((1.007083)¹²⁰ − 1)
≈ $620.17 / month
The interest portion decreases each month as the outstanding balance shrinks. Early payments are mostly interest; later payments are mostly principal. This is visible in the amortization schedule generated by the calculator above.
Combined Loan-to-Value (CLTV) explained
CLTV is the metric lenders use to assess risk on a home equity loan application. It accounts for all loans secured by the property, not just the new one:
Example: ($220,000 + $50,000) ÷ $400,000 × 100 = 67.5%
Most lenders publish a maximum CLTV of 80–85%. Borrowing above 85% is possible with some lenders but typically comes with a higher interest rate, stricter credit requirements, or the requirement to pay private mortgage insurance (PMI). Exceeding 90% CLTV makes approval extremely difficult.
| CLTV | Lender stance | Rate impact |
|---|---|---|
| ≤ 80% | Most lenders approve; best rates available | Standard |
| 80–85% | Many lenders approve; slightly higher rates | +0.25–0.50% |
| 85–90% | Fewer lenders; stricter credit requirements | +0.50–1.00% |
| > 90% | Very limited availability; likely denial | +1.00%+ or N/A |
How much can you borrow?
The maximum loan amount depends on your home's appraised value, your outstanding mortgage, and the lender's CLTV cap. Use this formula to estimate the maximum before applying:
At 80% CLTV: ($400,000 × 0.80) − $220,000 = $100,000
At 85% CLTV: ($400,000 × 0.85) − $220,000 = $120,000
At 90% CLTV: ($400,000 × 0.90) − $220,000 = $140,000
Beyond CLTV, lenders also consider your credit score (typically 620+ required; 700+ for best rates), your debt-to-income ratio (DTI, usually capped at 43%), and your income stability.
Home equity loan vs. HELOC: which is right for you?
The home equity loan and the Home Equity Line of Credit (HELOC) both tap your home equity, but they serve different needs:
| Feature | Home Equity Loan | HELOC |
|---|---|---|
| Structure | Lump sum at closing | Revolving line of credit |
| Rate | Fixed for the loan term | Variable (tied to prime) |
| Payments | Fixed monthly installment | Draw period then repayment |
| Best for | One-time large expense | Ongoing or uncertain costs |
| Predictability | High, payment never changes | Lower, rate fluctuates |
| Interest | On full balance immediately | Only on amounts drawn |
| Closing costs | 2–5% of loan amount | Lower or waived |
Choose a home equity loan when you need a fixed amount for a specific purpose — a home renovation, debt consolidation, or a major purchase and prefer payment certainty. Choose a HELOC when you need ongoing access to funds (e.g., phased construction) and can tolerate rate variability.
How interest rate changes your payment
The interest rate is the largest variable in your monthly payment. The table below shows monthly payments and total interest for a $50,000 loan at various rates and terms:
| Rate | 5-yr monthly | 10-yr monthly | 15-yr monthly |
|---|---|---|---|
| 5% | $943.56 | $530.33 | $395.40 |
| 6% | $966.64 | $555.10 | $421.93 |
| 7% | $990.06 | $580.54 | $449.41 |
| 8% | $1,013.82 | $606.64 | $477.83 |
| 8.5% | $1,025.87 | $620.17 | $492.26 |
| 9% | $1,037.92 | $633.38 | $506.91 |
| 10% | $1,062.35 | $660.75 | $537.30 |
$50,000 loan amount, fixed rate, fully amortizing.
Tax deductibility of home equity loan interest
Under the Tax Cuts and Jobs Act of 2017 (TCJA), interest on home equity loans is tax-deductible only if the proceeds are used to buy, build, or substantially improve the home that secures the loan. Using a home equity loan for debt consolidation, vacations, or other non-home purposes makes the interest non-deductible.
When deductible, the interest is claimed on Schedule A (itemized deductions). The total mortgage debt eligible for the deduction is capped at $750,000 (for loans originated after December 15, 2017). Consult a tax advisor to confirm deductibility for your specific situation.
Common uses for home equity loans
- Home renovation. Kitchens, bathrooms, additions, and energy-efficiency upgrades, especially when the improvement increases the home's value, making the interest potentially deductible.
- Debt consolidation. Paying off high-rate credit cards or personal loans with a lower-rate home equity loan can reduce your monthly outflows significantly. Note: this converts unsecured debt into debt secured by your home.
- College tuition. A lump sum for a multi-year tuition commitment, though federal student loans often offer more favorable terms and protections.
- Emergency fund or major purchase. Medical bills, large vehicle purchase, or business startup capital — situations where a fixed, low-rate lump sum is needed and the borrower can service the payment.
Risks and considerations
Because the loan is secured by your home, defaulting can result in foreclosure. Other risks to weigh:
- Home value decline. If your home's market value drops after you take out the loan, you could become "underwater", owing more than the home is worth, making it difficult to sell or refinance.
- Closing costs. Home equity loans typically carry closing costs of 2–5% of the loan amount (appraisal, title, origination). Factor these into your true cost of borrowing.
- Rate risk on variable alternatives. If you consider a HELOC as an alternative, remember that variable rates can rise significantly. The fixed rate on a home equity loan eliminates this risk.
- Reduced flexibility. A lump-sum loan commits you to the full borrowed amount from day one. If your needs turn out to be smaller, you pay interest on money you didn't fully use.
Comparing home equity loan, HELOC, and cash-out refinance
Beyond home equity loans and HELOCs, homeowners can also access equity through a cash-out refinance: replacing the first mortgage with a larger one and pocketing the difference. The right option depends on your current rate and loan size:
- Cash-out refi makes sense if today's rates are below your current mortgage rate, since you replace the whole loan. If your current mortgage rate is 3% and market rates are 8%, a refi would cost far more in interest.
- Home equity loan leaves your first mortgage untouched. It's the correct tool when your existing mortgage has a low rate you want to preserve.
- HELOC is best when you need flexibility — draw what you need, when you need it, and only pay interest on what you use during the draw period.
Disclaimer
This calculator provides payment estimates using standard loan amortization. It does not include origination fees, closing costs, appraisal fees, title insurance, or other charges that vary by lender. Actual loan approval, rates, and terms depend on your credit profile, income, debt-to-income ratio, and the lender's underwriting standards. Consult a licensed mortgage professional before borrowing against your home equity.