Finance
Calculate the maximum home equity loan available based on your home value, mortgage balance, and desired LTV ratio.
Available Home Equity Loan
$90,000max borrowable
Based on your home value, mortgage balance, and combined LTV limit of 85%. Monthly payment shown at 8% APR over 15 years.
A home equity loan calculator is a financial tool that determines how much you can borrow using your home as collateral. It takes your home's current value, subtracts your remaining mortgage balance to find your available equity, and applies a maximum combined LTV ratio (typically 80–90%) to find your lender-approved borrowing limit. Using that maximum loan amount, the calculator then applies your interest rate and term to compute your monthly payment, total interest, and payoff timeline. Home equity loans typically offer lower rates than personal loans because they're secured by your property.
The calculator starts by computing your available equity: (home value × LTV%) − mortgage balance. This is the pool you can potentially borrow from. Your lender sets a maximum combined LTV (usually 85%), which caps total debt (mortgage + new loan) at a percentage of your home's value. The calculator then uses the EMI (equated monthly installment) formula to convert your maximum loan amount into a fixed monthly payment: Payment = Loan × [r(1+r)^n] / [(1+r)^n−1], where r is the monthly rate and n is total months. Once you have the monthly payment, multiplying by the total number of months gives the total amount paid; subtracting the principal reveals total interest.
Available Equity = (Home Value × LTV%) − Mortgage Balance; Monthly Payment = Max Loan × [r(1+r)^n] / [(1+r)^n - 1]; Total Interest = (Monthly Payment × Total Months) − Max LoanThe first step finds your borrowing pool by applying the LTV limit to your home value and subtracting what you owe. The second formula (EMI) converts that max loan into a fixed monthly payment: r is the monthly interest rate (annual ÷ 100 ÷ 12) and n is the total number of months (term × 12). Total interest is the difference between all payments made and the principal borrowed.
| Input | Result | Notes |
|---|---|---|
| Home Value: $500,000 | Mortgage: $300,000 | Combined LTV: 85% | Rate: 8% | Term: 15 years | Available Equity: $125,000 | Max Loan: $125,000 | Monthly Payment: $955 | Total Interest: $42,000 | A strong home with substantial equity. At 85% combined LTV, you can borrow the full $125,000 available; at 8%, your payment is reasonable for a 15-year term. |
| Home Value: $300,000 | Mortgage: $220,000 | Combined LTV: 80% | Rate: 6.5% | Term: 10 years | Available Equity: $20,000 | Max Loan: $20,000 | Monthly Payment: $211 | Total Interest: $5,320 | Limited available equity. Even though 80% LTV allows up to $240,000 in total debt, your mortgage is already high, so you can only borrow $20,000. This might fund a home renovation or debt consolidation. |
| Home Value: $600,000 | Mortgage: $250,000 | Combined LTV: 90% | Rate: 7% | Term: 20 years | Available Equity: $290,000 | Max Loan: $290,000 | Monthly Payment: $2,010 | Total Interest: $192,400 | High equity position. A 90% LTV allows substantial borrowing. Over 20 years, you pay significant total interest, but your monthly burden is spread across a longer term. |
Combined LTV (loan-to-value) is the total debt (mortgage + home equity loan) divided by your home's value. If your home is worth $500,000 and you owe $300,000 + $100,000 (home equity loan) = $400,000, your combined LTV is 80%. Lenders cap this to 80–90% to protect themselves and you from over-leveraging.
Lenders consider not only LTV but also credit score, income, debt-to-income ratio, and employment history. The calculator shows your equity and borrowing capacity based on LTV alone; your lender may approve less based on other factors or may require a lower LTV due to local regulations.
A home equity loan is secured by your home. If you default, the lender can foreclose and sell your property to recover the debt. This security is why rates are lower than personal loans, but it also means your home is at risk if you cannot repay.
Yes, most home equity loans allow early repayment without penalty. Paying extra toward principal reduces your balance faster and saves interest. Use the calculator to estimate how much extra you'd need to pay to clear the loan in 10 years instead of 15, for example.
A home equity loan is a fixed lump-sum borrowing at a fixed rate and fixed payment (like a traditional loan). A HELOC (home equity line of credit) is a revolving credit line like a credit card: you draw what you need, pay interest only on what you use, and rates may adjust. This calculator assumes a traditional fixed home equity loan.
Recalculate when your home value changes significantly (after a renovation, market shift, or new appraisal), when you pay down your mortgage substantially, or when rates drop and you're considering refinancing. Annual reviews are prudent for long-term planning.