Home Equity Loan Calculator
Free, smart, and easy-to-use online tool to calculate your borrowing limit, monthly payments, and total interest — built for U.S. homeowners.
Loan Details
Results
Quick Tips
- • Lower LTV = lower risk, better rates
- • Extra payments reduce total interest
- • Compare rates from multiple lenders
Visualization
Principal vs Interest
Outstanding Balance Over Time
Yearly Amortization Schedule
| Year | Starting Balance | Principal Paid | Interest Paid | Ending Balance |
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What Is a Home Equity Loan?
A home equity loan is a type of loan that lets you borrow money using the equity you have built in your home.
Equity is simply the difference between your home’s current market value and the amount you still owe on your mortgage.
The more you have paid off, or the more your home value has increased, the more equity you have available to borrow against.
Simple Example of Home Equity:
$500,000 (Home Value) – $200,000 (Mortgage Balance) = $300,000 Home Equity
Home equity loans are often called a second mortgage because your home is used as collateral again.
Unlike credit cards or personal loans, a home equity loan usually comes with a fixed interest rate, fixed monthly payments, and a clear repayment term. This makes budgeting easier for most U.S. homeowners.
Many people use home equity loans for:
Home improvements and renovations
Debt consolidation at a lower interest rate
Education, medical, or other large expenses
Big planned purchases or long-term financial goals
Because your home is the collateral, it’s important to borrow carefully and understand your monthly payment before applying.
Use our Home Equity Loan Calculator above to estimate how much you may qualify for, your monthly payment, and the total interest over the life of the loan.
How Does a Home Equity Loan Calculator Work?
A Home Equity Loan Calculator helps you estimate how much you can borrow against the equity in your home.
Instead of guessing loan amounts and payments, the calculator uses important financial inputs to give accurate and instant results.
The calculator works by combining your home value, remaining mortgage balance, interest rate, and repayment term.
Based on these values, it calculates your available equity, loan eligibility, estimated monthly payment, total interest cost, and payoff timeline.
What the calculator uses:
- ✨ Home value (current market estimate)
- ✨ Outstanding mortgage balance
- ✨ Loan-to-Value (LTV) limit set by lenders
- ✨ Interest rate and loan term
Once these details are entered, the calculator estimates the maximum amount you may qualify for and shows repayment estimates, including how much interest you’ll pay over time.
It helps you compare borrowing options before applying.
It shows how interest affects your total repayment over the loan term.
It gives a realistic picture of how much you can borrow based on lender limits.
Using our Home Equity Loan Calculator helps you plan confidently, compare scenarios, and understand your approximate borrowing power before talking to a lender.
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How to Calculate Home Equity Loan Payment
Calculating your monthly home equity loan payment manually can be confusing.
Our calculator makes it simple by doing all the math for you. You can estimate your repayment amount in multiple currencies like USD (United States Dollar), INR (Indian Rupee), EUR (Euro), GBP (British Pound), and CNY (Chinese Yuan) with just a few clicks.
Before you start, keep these details ready: your home’s current value, the remaining mortgage balance, your preferred loan amount, interest rate, and loan term in years. The tool uses these inputs to show your estimated monthly installment, total interest cost, and payoff date.
Follow these steps to use our Home Equity Loan Calculator:
- Select your currency (USD, INR, EUR, GBP, or CNY).
- Enter your Home Value (current market value).
- Type your Outstanding Mortgage balance.
- Adjust the LTV slider to choose how much equity you want to unlock.
- Enter a Requested Loan Amount or leave it blank to let the tool auto-calculate the maximum.
- Add the Annual Interest Rate and Loan Term (Years).
- Choose the Start Month and Start Year.
- Optionally, add an Extra Monthly Payment to see how faster payoff reduces interest.
- Click Calculate to view your estimated monthly payment and full loan summary.
How the monthly payment is calculated:
The calculator uses a standard loan payment formula similar to a mortgage or EMI:
Payment = P × r × (1 + r)n ÷ ((1 + r)n − 1)
Here, P is the loan amount, r is the monthly interest rate, and n is the total number of monthly payments. Our tool does this automatically and then converts the result into the currency you selected.
See your estimated monthly payment before you apply for a home equity loan or second mortgage.
Test different interest rates, loan terms, and extra payments to find a comfortable repayment plan.
Easily compare home equity loan payments across currencies like USD, INR, EUR, GBP, and CNY.
By using our Home Equity Loan Calculator, you can understand your potential monthly payment, total interest cost, and overall affordability before speaking with a lender or choosing a home equity financing option.
10-Year Home Equity Loan Payment Calculator
A 10-year home equity loan is a fixed-term loan that you repay over 120 months with steady, predictable payments.
Many homeowners choose a 10-year repayment period to become debt-free faster and reduce the total interest paid compared to longer loan terms.
With our AI free calculator, you can quickly see how a 10-year loan amount, interest rate, and term will affect your monthly budget before you apply.
1. Enter Your Home Details
Enter your home value and your outstanding mortgage balance.
2. Set Your Borrow Amount
Adjust the LTV slider or type a loan amount to choose how much equity you want to borrow.
3. Add Interest Rate
Enter the annual interest rate quoted by your bank or lender.
4. Set Loan Term
In the Loan Term (Years) field, type 10 to set a 10-year repayment period.
5. Choose Currency
Select your preferred currency: USD (United States Dollar), INR (Indian Rupee), EUR (Euro), GBP (British Pound), or CNY (Chinese Yuan).
6. Calculate Your Payment
Choose the start month and start year, then click Calculate to see your estimated monthly payment.
A 10-year term helps you pay off your home equity loan faster than longer repayment options.
You may pay less total interest over time, even if the monthly installments are higher.
You can compare 10-year payments with 15 or 20 years by simply changing the term in our calculator.
Use our Free Home Equity Loan Calculator to explore different loan amounts and see if a 10-year repayment plan fits your monthly budget and long-term financial goals.
Why Use Our Home Equity Loan Calculator Online?
This Home Equity Loan Calculator is completely free to use and works directly in your browser — no sign-up, login, or personal details required.
Whether you're planning a renovation, consolidating debt, or exploring borrowing options, this tool helps you estimate payments instantly.
The calculator works online on all devices, including mobile phones, tablets, and desktop computers.
You can switch between multiple currencies like USD (United States Dollar), INR (Indian Rupee), EUR (Euro), GBP (British Pound), and CNY (Chinese Yuan) depending on where you live or plan to borrow.
🔍 Instant Results
View your monthly payment, total interest, and payoff estimate within seconds.
💲 Multi-Currency Support
Use the calculator in USD, INR, EUR, GBP, or CNY — globally accessible.
📱 Device Friendly
Works smoothly on desktop, laptop, tablet, and mobile screens.
🧮 Clear Breakdown
Understand principal vs interest with simple repayment visuals.
🔁 Compare Scenarios
Try different loan terms, rates, and amounts to find the best option.
With this free online calculator, you can preview your monthly loan cost, plan ahead, and make confident financial decisions before applying with a lender.
Home Equity Loan Interest Calculation Explained
When you take a home equity loan, you pay back the money you borrowed plus interest. The interest is the cost of borrowing and is usually charged at a fixed annual percentage rate (APR).
Your interest rate is influenced by several factors: your credit score, debt-to-income ratio, loan-to-value (LTV) ratio, loan term, and overall market rates. A lower risk profile usually means a lower rate and lower total cost of borrowing.
Key factors that affect your home equity loan interest:
- 📊 Credit score – higher scores often qualify for better rates.
- 🏠 Loan-to-Value (LTV) – borrowing a smaller percentage of your equity can reduce the rate.
- ⏱️ Loan term – shorter terms may have higher payments but lower total interest.
- 💵 Loan amount – very small or very large loans may have different pricing tiers.
- 📉 Market conditions – overall interest rate trends also impact what lenders offer.
How monthly interest is calculated:
For a fixed-rate home equity loan, your payment stays the same each month, but the interest portion changes as the balance goes down.
Monthly interest ≈ Remaining balance × (Annual interest rate ÷ 12)
Over time, more of your monthly payment goes toward principal and less toward interest. Our calculator estimates this for you automatically, so you can see how much interest you might pay over the full term.
💡 Understand True Cost
See how interest adds up over the life of the loan, not just the monthly payment.
📉 Compare Rate Options
Try different rates in the calculator to see how small changes affect total interest.
🧮 Plan Ahead
Estimate your borrowing cost before you speak with a lender or lock in an offer.
Use our Home Equity Loan Calculator to test different interest rates, terms, and loan amounts so you can better understand how interest impacts your monthly payment and overall cost.
Compare Home Equity Loan Rates
Home equity loan rates can vary from lender to lender, even for the same borrower profile. That’s why it’s important to compare offers instead of accepting the first quote you receive.
Your rate will depend on your credit history, income, LTV, loan amount, and overall market conditions. Comparing multiple lenders can help you find a more competitive rate and save money over the life of the loan.
1. Collect Rate Quotes
Get home equity loan offers from banks, credit unions, and online lenders so you have options to compare.
2. Check APR, Not Just Rate
APR includes certain fees and gives a more complete view of your borrowing cost than the interest rate alone.
3. Compare Loan Terms
A lower rate with a much longer term can still mean paying more interest overall. Balance monthly affordability with long-term cost.
4. Use Our Calculator
Enter each lender’s rate, term, and loan amount into our calculator to compare monthly payments and total interest side by side.
A slightly lower rate can lead to big savings on larger loans or longer terms.
Consider any closing costs, appraisal fees, or early payoff penalties when comparing offers.
If you’re outside the U.S., you can still compare borrowing scenarios using our calculator in USD, INR, EUR, GBP, or CNY.
Comparing home equity loan rates with the help of an online calculator gives you a clearer picture of what you can comfortably afford before you commit to a lender.
Home Equity Loan vs HELOC
Home equity loans and home equity lines of credit (HELOCs) both let you borrow against the value of your home, but they work in different ways. Understanding the difference can help you choose the right option for your needs.
🏠 Home Equity Loan
- • You receive a lump sum amount upfront.
- • Usually comes with a fixed interest rate.
- • Monthly payment stays the same over the term.
- • Works well for one-time, large expenses like renovations or debt consolidation.
💳 HELOC (Home Equity Line of Credit)
- • Works more like a credit line you can draw from as needed.
- • Often has a variable interest rate that can change over time.
- • Payments can fluctuate based on balance and rate.
- • Better for ongoing or unpredictable expenses, such as phased projects or emergencies.
Which option might be better for you?
Choose a Home Equity Loan if:
- • You know exactly how much money you need.
- • You prefer fixed monthly payments.
- • You want a clear payoff date and simple structure.
Choose a HELOC if:
- • Your costs are spread out over time.
- • You want flexibility to borrow only when needed.
- • You are comfortable with changing payments and variable rates.
Our Home Equity Loan Calculator is designed for fixed-term loans, but you can still use it to estimate possible payments if you convert a HELOC balance into a structured repayment plan. This helps you compare how a lump-sum loan might fit into your budget versus a flexible line of credit.