Home Equity Loan Calculator

Use this free home equity loan calculator to estimate your monthly payment in seconds. Enter your loan amount, interest rate, and loan term. The calculator returns your fixed monthly payment, total interest, and total cost over the life of the loan.

A home equity loan lets you borrow a lump sum secured by your home. Because it carries a fixed interest rate, your payment stays the same every month. This calculator helps you plan before you talk to a lender.

Home Equity Loan Payment Calculator

The calculator on this page needs three inputs:

1. Loan amount you want to borrow
2. Interest rate (annual percentage)
3. Loan term in years

Hit calculate, and you get an estimated payment instantly. You can adjust any input to compare scenarios side by side.

How are home equity loan payments calculated? The tool uses a standard amortization formula. It divides principal and interest into equal payments across the full loan term.

How the Home Equity Loan Calculator Works

Loan amount

Loan amount is the total lump sum you plan to borrow against your home's equity. Start with the dollar figure you actually need, not the maximum a lender might approve.

For example, if you need $50,000 for home improvements, enter $50,000. If you're consolidating debt, add up every balance you plan to pay off. That total is your loan amount.

Interest rate

Enter the annual interest rate your lender has quoted or that you expect based on current home equity loan rates. Even a small rate difference changes your payment.

A borrower offered 8.0% instead of 8.5% on a $50,000 loan saves roughly $1,400 in total interest over 15 years. Use this calculator to estimate the exact difference for your numbers.

Loan payment and loan term

Loan term is the number of years you have to repay the loan. Common terms are 5, 10, 15, and 20 years.

A shorter loan term means a higher monthly payment but less total interest. A longer term lowers the monthly payment but increases total cost. Try several terms in the calculator to find the balance that fits your budget.

How much would a $100,000 home equity loan be monthly? At 8.5% for 15 years, expect roughly $985 per month. At 20 years, the payment drops to about $868, but you pay significantly more interest over time.

Your estimated payment

After you click calculate, the tool shows your estimated payment along with:

• Monthly payment amount (principal plus interest)
• Total interest paid over the full term
• Total of all payments combined

These numbers are estimates. Your actual payment may differ based on lender fees, your credit score, and the final rate you lock in. Use the results as a planning starting point, not a binding quote.

How much would my payment be on a $30,000 home equity loan? At 8.0% for 10 years, roughly $364 per month. Plug your own rate and term into the calculator for a personalized figure.

Home equity loan rates and your monthly payment

Home equity loan rates depend on several factors you control and a few you don't:

• Credit score. Higher scores typically unlock a lower interest rate.
• Loan-to-value ratio. Borrowing a smaller share of your home value reduces lender risk.
• Loan term. Shorter terms sometimes carry lower rates.
• Market conditions. Rates move with broader economic trends.

What is the interest rate on a $50,000 home equity loan? It varies widely by lender and borrower profile. As a rough guide, rates in 2024 and 2025 have ranged from about 7% to 10% or more. Check current home equity rates from at least two or three lenders before you commit.

Because a home equity loan has a fixed interest rate, the payment you see in the calculator stays flat for the entire term. That predictability makes budgeting straightforward.

Fixed-rate home equity loan vs. home equity line of credit

Fixed-rate home equity loan payment

A home equity loan is a one-time installment loan. You receive the full loan amount at closing, then repay it in fixed monthly payments over a set term.

This structure works well when you know exactly how much you need upfront. Home improvements, large medical bills, and debt consolidation are common uses.

Your payment never changes, which makes it easy to plan around. The tradeoff is that you pay interest on the entire balance from day one.

HELOC draw period and repayment

A home equity line of credit (HELOC) works differently. It gives you a credit line you can draw from as needed during a draw period, usually 5 to 10 years.

During the draw period, many HELOCs require interest-only payments. Once the draw period ends, you enter a repayment phase and start paying principal plus interest. That shift can cause a noticeable payment increase.

How does a HELOC work in practice? Think of it like a credit card secured by your home. You borrow only what you need, when you need it. Interest accrues only on the amount you've drawn.

Key differences at a glance:

Should I choose a HELOC or a fixed home equity loan? If you want payment certainty and have a defined expense, a fixed-rate home equity loan is usually simpler. If you need flexibility, a HELOC may cost less in interest because you only borrow what you use.

Can you fix the interest rate on a HELOC? Some lenders offer a fixed-rate option on all or part of your HELOC balance. Ask your lender whether that feature is available.

Home equity calculator: how much can you borrow

Before you estimate a payment, it helps to calculate your home equity. Your equity is the market value of your home minus your current mortgage balance.

Example:

• Home value: $400,000
• Mortgage balance: $250,000
• Equity: $150,000

That $150,000 is your total equity. Lenders won't let you borrow all of it. Most cap your combined borrowing at 80% to 85% of your home value.

Loan-to-value ratio and mortgage balance

The loan-to-value ratio (LTV) measures how much of your home's value is tied up in debt. To find it, add your current mortgage balance to the new loan amount and divide by your home value.

Formula:

(Mortgage balance + New loan amount) ÷ Home value = Combined LTV

Using the example above with an 80% cap:

• Maximum combined debt: $400,000 × 0.80 = $320,000
• Available equity to borrow: $320,000 − $250,000 = $70,000

If your mortgage balance is lower, your available equity grows. If your home value has increased since you bought it, that also boosts what you can borrow.

Credit score, closing costs, and lender requirements

Lenders consider more than just your equity:

• Credit score. Most lenders want a score of 620 or higher. A higher score can mean better rates and higher borrowing limits.
• Debt-to-income ratio. Lenders check that your total monthly debt payments stay within a safe percentage of your income.
• Closing costs. Home equity loans carry closing costs, typically 2% to 5% of the loan amount. Some lenders roll these into the loan balance; others require payment upfront.
• Credit history. A clean payment history strengthens your application.

How do I qualify for a home equity loan? Meet the lender's minimums for credit score, LTV, and income verification. Gathering recent pay stubs, tax returns, and a current mortgage statement speeds up the process.

Loan options: home equity loan vs. cash-out refinance vs. HELOC

Three common ways to tap your home's equity:

1. Home equity loan. Separate second lien with a fixed rate. You keep your existing mortgage untouched.
2. Cash-out refinance. Replaces your current mortgage with a larger one. You receive the difference as cash. This resets your mortgage rate and term.
3. HELOC. Revolving credit line with a variable rate, also secured by your home.

When each option may fit best:

• Home equity loan: You want a predictable fixed monthly payment and a specific amount.
• Cash-out refinance: Your current mortgage rate is high and you can refinance to a lower interest rate while pulling cash out.
• HELOC: You need ongoing access to funds and prefer to borrow only as needed.

Cash-out refinance or HELOC? If current mortgage rates are higher than your existing rate, a cash-out refinance would raise your overall borrowing cost. In that scenario, a home equity loan or HELOC as a second lien usually makes more sense.

Is a home equity loan a separate payment? Yes. Because it's a second lien, you make your regular mortgage payment plus the home equity loan payment each month.

Home equity loan payment calculator for debt consolidation

Debt consolidation is one of the most common reasons borrowers use a home equity loan. The idea is straightforward: replace higher-rate debts (credit cards, personal loans) with a single, lower interest rate loan secured by your home.

Steps to evaluate consolidation:

1. List every debt you'd pay off: balance, rate, and minimum payment.
2. Add the balances. That total is your potential loan amount.
3. Enter that amount into the payment calculator with the home equity rate you expect.
4. Compare the new single payment to the combined minimums you pay today.

Should you use a home equity loan for debt consolidation? It can lower your total monthly outflow and save on interest. However, you're converting unsecured debt (like credit cards) into debt secured by your home. If you can't make the payments, your home is at risk.

A few cautions:

• Close or freeze the credit accounts you pay off. Otherwise, new balances may accumulate on top of the home equity loan.
• Factor in closing costs. If the savings don't outweigh the fees within a reasonable timeframe, consolidation may not help.
• This calculator provides estimates. Speak with a lender or financial advisor before using your home as collateral to pay off other debts.

What this payment calculator does not cover

This home equity loan calculator gives you a useful estimate, but it has limits. Keep these in mind:

• Closing costs and fees. The calculator does not include origination fees, appraisal costs, or title insurance. These add to your total cost.
• Property taxes and homeowners insurance. Your lender may require an escrow account, but those amounts are separate from the loan payment shown here.
• Variable-rate scenarios. This tool models a fixed-rate home equity loan. For a HELOC with a variable rate, payment amounts change as rates move.
• Loan approval. Getting an estimate here does not mean you qualify. Lender requirements around credit score, income, and LTV still apply.
• Tax implications. Interest on a home equity loan may be tax-deductible if the funds are used for home improvements, but tax rules vary. Consult a tax professional.
• Professional financial advice. The results are for planning purposes only. They are not an offer, a guarantee, or a substitute for guidance from a qualified lender or advisor.

Use this calculator to estimate your monthly payment and narrow your options. Then talk to a lender to get a real quote based on your full financial picture.