Home Equity Loan Calculator
Estimate a fixed-rate second mortgage, check a borrowing-capacity assumption, and see how fees and extra payments affect your loan.
Your estimate
Repayment schedule
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How a home equity loan works
A home equity loan provides a lump sum secured by your home and usually carries a fixed interest rate. It is different from a revolving HELOC. Your home is collateral, so failure to repay can put it at risk. Read the CFPB explanation.
Equity and borrowing capacity
Estimated equity equals home value minus existing secured debt. This calculator estimates additional debt capacity as home value × your assumed combined-LTV limit − existing debt, floored at zero. That is a scenario, not approval. Credit, income, appraisal and lender rules still matter.
For a home valued at 400,000 with 250,000 owed and an assumed 80% limit, modeled additional debt capacity is 70,000. A new 50,000 balance brings combined LTV to 75%. Financed fees increase that balance and use part of the capacity.
Three ways to handle closing fees
Deducting fees reduces the cash received but leaves the entered loan balance unchanged. Paying fees separately keeps the full proceeds and requires cash at closing. Financing adds fees to the balance and increases the payment. Percentage fees are always based on the entered loan amount before fees.
What does borrowing cost mean?
The displayed borrowing cost is interest plus the closing fees entered. It excludes principal repayment. Financed fees are counted once as fees; interest charged on them is included in interest. Taxes, insurance, penalties and other charges are excluded.
How are payments calculated?
The fixed nominal annual interest rate is divided by 12. The loan is amortized with equal scheduled monthly payments. Extra principal reduces the balance after each month’s interest and can shorten repayment. The final payment is capped at the amount owed. At zero interest, payment equals loan balance divided by months.
Is the capacity figure cash I can receive?
It is additional starting debt capacity under the selected assumption, including financed fees. Deducted fees reduce proceeds. It is not a commitment to lend, and existing credit lines may be evaluated differently by lenders.
What if the new balance exceeds my assumed limit?
The calculator still shows the payment for that scenario, but flags the amount above the modeled capacity. It does not silently reduce the loan or suggest approval.
What does this calculator leave out?
Variable rates, balloon payments, tax deductions, lender approval, existing mortgage payments and property expenses are not modeled. Currency selection only formats amounts. Displayed values are rounded; internal calculations keep full precision.