Fixed second mortgage planner

Home Equity Loan Calculator

Estimate how much equity may be available, how a new home equity loan affects CLTV, and what the monthly payment, cash received, closing costs, and total interest could look like.

Borrowing rule of thumb Check CLTV first

Many lenders evaluate all home-secured debt against the home's value before approving a second mortgage.

Inputs

Home Value, Existing Mortgage, and New Loan

Use realistic home value and mortgage balance numbers. A higher requested loan may still be unaffordable or outside lender CLTV limits.

Equity and loan request

Payment and cost assumptions

Home equity estimate $0

Monthly payment will appear here.

Available equity at target CLTV$0
Projected CLTV0%
Cash received$0
Total interest$0

CLTV risk note will appear here.

Home equity before new loan$0
Total secured debt after loan$0
Total of payments$0
Closing costs effect$0

Formula used

Payment = P x r(1+r)^n / ((1+r)^n - 1). CLTV = (mortgage balance + new loan) / home value.

Method

How This Home Equity Loan Calculator Works

The calculator separates two decisions: how much equity may be available and what the requested loan would cost. Equity is estimated from home value minus existing mortgage debt. Borrowing capacity is estimated with a target combined loan-to-value ratio, or CLTV.

The payment estimate assumes a fixed-rate, fully amortizing home equity loan. Closing costs can be deducted from proceeds, paid upfront, or financed into the loan balance, because each choice changes the cash received or the repayment cost.

Data and source notes: No lender quotes, appraisals, title reports, or tax data are used. The calculator relies on the home value, mortgage balance, requested loan, CLTV target, rate, term, and closing cost assumptions entered by the user.

Risk note

Home Equity Is Collateral, Not Free Cash

A home equity loan is secured by the property. The U.S. Office of the Comptroller of the Currency warns that using a home as security can put the home at risk if payments cannot be made.

Read the OCC consumer warning.

Examples

When a Home Equity Loan Estimate Is Useful

Home improvement budget

Compare the project cost with available equity and monthly payment before using the home as collateral.

Debt consolidation

Check whether the lower rate is worth the closing costs and the risk of converting unsecured debt into home-secured debt.

Large one-time expense

A fixed lump-sum loan can be easier to plan than a variable credit line when the amount and timeline are clear.

CLTV limit check

See whether the requested loan pushes total home-secured debt above the CLTV target you want to stay under.

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 Fee impactAPR Calculator

Compare interest rate and fees as a broader borrowing cost.

 Qualification pressureDTI Ratio Calculator

Estimate debt pressure before adding another secured loan.

FAQ

Home Equity Loan Calculator FAQ

How much can I borrow with a home equity loan?

This depends on home value, existing mortgage balance, lender CLTV limit, credit, income, debts, property type, and underwriting rules. The calculator estimates capacity from home value, existing debt, and target CLTV.

What is the difference between equity and available borrowing?

Equity is home value minus existing mortgage debt. Available borrowing is the amount that may remain after applying a CLTV limit and subtracting existing secured debt.

Should closing costs be deducted or paid upfront?

If costs are deducted, cash received is lower. If paid upfront, cash received is higher but you need more money at closing. If financed, the payment and interest cost can rise.

Why does CLTV matter?

CLTV measures total debt secured by the home. A high CLTV leaves less equity cushion if home value falls or if you need to sell.

Is this calculator a loan approval estimate?

No. It is a planning calculator. Approval depends on lender underwriting, credit, income, debts, appraisal, title, property requirements, and state rules.

Is a home equity loan the same as a HELOC?

No. A home equity loan is usually a fixed lump-sum installment loan, while a HELOC is usually a revolving credit line with draw and repayment periods.

Does this estimate tax deductibility?

No. Tax treatment depends on how loan proceeds are used and current tax rules. Ask a qualified tax professional before assuming interest is deductible.

Can a home equity loan put my home at risk?

Yes. Because the loan is secured by the home, missed payments can create serious consequences including possible foreclosure.

Disclaimer

This calculator is for general informational purposes and simple arithmetic checks. It is not a loan offer, approval decision, legal advice, tax advice, or financial advice. Verify loan terms, fees, CLTV limits, lien position, tax treatment, and risks with a qualified professional or lender.