Home Equity Loan Calculator
A home equity loan is a fixed-rate second mortgage: one lump sum, a fixed payment, and a set payoff date. Enter the amount, rate, and term to see what it costs.
How this calculator works
The loan amortizes over the term at a fixed rate: each payment is identical, with the interest portion declining as the balance falls. Because the loan is secured by your home, rates are lower than credit cards but your house is the collateral — defaulting can put the home at risk.
Frequently asked questions
Home equity loan or HELOC?
A home equity loan gives you a fixed lump sum and a fixed payment — right for a one-time cost like a remodel. A HELOC is a revolving credit line with a variable rate and interest-only payments during the draw period — right for ongoing costs. If you cannot handle payment shocks, the fixed loan wins.
How much equity can I borrow against?
Lenders typically cap your combined loan-to-value at 80–85% of the home's value — meaning your first mortgage plus the new loan cannot exceed that. On a $400,000 home with a $250,000 mortgage, you could usually borrow about $70,000–90,000, depending on the lender's cap.
Is the interest tax deductible?
Only if the loan is used to buy, build, or substantially improve the home (and within the $750,000 acquisition-debt cap). Interest on equity used for other purposes — a car, credit card payoff, vacation — is no longer deductible. Track the use of the money.
Disclaimer: Results are estimates for general information only and do not constitute financial, tax, or legal advice. Figures reflect 2026 rules and may change. Always confirm current limits and consult a qualified professional before making decisions. Official figures: IRS.gov · 2026 limits per IRS tax inflation adjustments.