Home Equity Loan Calculator
$0.00 / month
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How a Home Equity Loan Payment Is Calculated
A home equity loan is a second loan secured by your home, paid out as a lump sum and repaid on a fixed schedule — unlike a HELOC, which works more like a revolving credit line. This calculator uses the standard fixed-rate amortization formula to spread the loan amount, interest rate, and term into equal monthly payments, the same math used for a typical mortgage or auto loan. If you want to compare this to a line-of-credit structure instead, try the HELOC calculator.
Why Combined Loan-to-Value (CLTV) Matters
Lenders look at your combined loan-to-value ratio — your existing mortgage balance plus the new home equity loan, divided by your home's current value — to decide how much they'll let you borrow. Most lenders cap CLTV somewhere between 80% and 90%. This calculator estimates your current equity and resulting CLTV so you can see roughly where you stand before applying; get an appraisal for an exact figure, since home values fluctuate.
Fixed Payment, But Don't Ignore Closing Costs
Home equity loans typically carry lower closing costs than a first mortgage (often flat fees rather than a percentage of the loan), but they still add to your real cost of borrowing. The total cost figure above adds those fees to your lifetime interest so you can compare offers on an apples-to-apples basis. If you're weighing this against paying down debt with a personal loan instead, the personal loan calculator can help you compare monthly payments side by side.
Frequently Asked Questions
How is my home equity loan payment calculated?
The calculator uses the standard fixed-rate amortization formula, which spreads your loan amount, interest rate, and term into equal monthly payments so that the loan is fully paid off (principal and interest) by the end of the term.
What is combined loan-to-value (CLTV) and why does it matter?
CLTV is your existing mortgage balance plus the new home equity loan divided by your home's current value. Most lenders cap CLTV between 80% and 90%, so a lower CLTV generally means an easier approval and potentially a better rate.