Enter home value and loan details to calculate payments and equity ratios…
Home Equity Loan Calculator figures monthly payments, loan-to-value, debt-to-income impact, and tax savings for home equity loans and HELOCs using 2025 U.S. rates.
The Consumer Financial Protection Bureau reported that nearly 38 % of U.S. homeowners tap their home equity without fully understanding the long‑term cost, and the average loan‑to‑value (LTV) ratio for those loans sits at 71 %. At the same time, the Federal Reserve’s FRED database shows the average 30‑year mortgage rate hovering around 6.2 %, while the typical home‑equity‑loan APR ranges from 4.9 % to 7.4 % depending on credit score and fixed‑versus‑adjustable structures.
A Home Equity Loan Calculator bridges this information gap. By ingesting the principal balance of the primary mortgage, the current appraised value, the desired draw amount, the loan term, and the APR, the tool instantly produces an amortization schedule, the monthly payment (interest‑only or fully amortizing), the total interest cost, and the resulting LTV after draw. The 2025 version also flags compliance with most lenders’ maximum LTV of 85 % and incorporates a “home‑equity‑line‑of‑credit (HELOC)” option that recalculates the balance as you make draws and repayments.
A Home Equity Loan Calculator is a financial tool that calculates the loan amount a homeowner can borrow against their property’s equity. Home equity is the portion of your home’s value that you fully own, computed as:
Equity=Home Market Value−Outstanding Mortgage Balance\text{Equity} = \text{Home Market Value} – \text{Outstanding Mortgage Balance}
The calculator also estimates monthly payments using the principal, interest rate, and loan term. It is widely used in financial planning, mortgage refinancing, and personal budgeting.
Quick Logic Summary:
The monthly payment (fixed-rate loan) is calculated using:
M=Pr(1+r)n(1+r)n−1M = P \frac{r(1+r)^n}{(1+r)^n – 1}
Where:
MM = Monthly payment
PP = Loan principal (home equity loan amount)
rr = Monthly interest rate (annual ÷ 12)
nn = Total number of payments (loan term × 12)
A professional calculator considers several factors step-by-step:
Home Equity=Market Value−Mortgage Balance\text{Home Equity} = \text{Market Value} – \text{Mortgage Balance}
Example:
Home value: $450,000
Outstanding mortgage: $200,000
Equity=450,000−200,000=250,000\text{Equity} = 450,000 – 200,000 = 250,000
Lenders typically allow 80–90% LTV for home equity loans:
Max Loan=Equity×LTV Ratio\text{Max Loan} = \text{Equity} \times \text{LTV Ratio}
Example (80% LTV):
Max Loan=250,000×0.8=200,000\text{Max Loan} = 250,000 \times 0.8 = 200,000
Using the loan amortization formula:
M=Pr(1+r)n(1+r)n−1M = P \frac{r(1+r)^n}{(1+r)^n – 1}
Example:
Loan amount P=200,000P = 200,000
Annual interest rate = 6% → monthly r=0.06/12=0.005r = 0.06 / 12 = 0.005
Term = 15 years → n=15×12=180n = 15 \times 12 = 180
M=200,0000.005(1.005)180(1.005)180−1≈1,687 USD/monthM = 200,000 \frac{0.005(1.005)^{180}}{(1.005)^{180}-1} \approx 1,687 \, \text{USD/month}
Some home equity loans may include:
Origination fees (0.5–1.5% of loan amount)
Appraisal fees ($300–$600)
Closing costs ($500–$2,000)
The calculator can provide an adjusted effective loan amount after these fees.
| Loan Amount ($) | Interest Rate (%) | Term (Years) | Monthly Payment ($) | Total Interest ($) |
|---|---|---|---|---|
| 100,000 | 5.5 | 10 | 1,073 | 28,760 |
| 150,000 | 6.0 | 15 | 1,266 | 77,880 |
| 200,000 | 6.0 | 20 | 1,432 | 143,680 |
Maximum Loan Amount:
Max Loan=(Home Value−Mortgage Balance)×LTV\text{Max Loan} = (\text{Home Value} – \text{Mortgage Balance}) \times \text{LTV}
Monthly Payment:
M=Pr(1+r)n(1+r)n−1M = P \frac{r(1+r)^n}{(1+r)^n – 1}
Where:
PP = Principal
rr = Monthly interest rate
nn = Number of months
Total Interest:
Total Interest=(M×n)−P\text{Total Interest} = (M \times n) – P
Home value: $350,000
Mortgage: $150,000
LTV: 85%
Term: 10 years, fixed 5.5%
Loan amount: $170,000
Monthly payment: $1,845
Home value: $500,000
Mortgage: $300,000
LTV: 80%
Term: 15 years, fixed 6%
Loan amount: $160,000
Monthly payment: $1,351
Home value: $650,000
Mortgage: $200,000
LTV: 80%
Term: 20 years, variable rate 5.75%
Loan amount: $360,000
Monthly payment: $2,556
A Home Equity Loan Calculator is essential for homeowners to make informed borrowing decisions in 2025. By calculating maximum loan eligibility, monthly payments, total interest, and LTV constraints, it empowers individuals to plan renovations, consolidate debt, or finance major purchases safely. For reliable, accurate, and professional-grade home equity loan calculations, Gcalculate.com provides trusted tools for all users.