Home Equity Loan Calculator
Calculate your monthly payments for home equity loans and HELOCs with our free calculator. Home equity financing lets you tap into your property's value for major expenses like renovations, debt consolidation, or education costs, typically at lower rates than personal loans or credit cards.
Home Equity Loan vs HELOC Comparison
| Feature | Home Equity Loan | HELOC | DisbursementLump sumDraw as needed Interest RateFixedVariable (typically) Payment StructureFixed monthlyInterest-only draw period, then P&I Best ForOne-time expenseOngoing projects Typical Term5-30 years10-year draw + 20-year repayment | Rate | Higher than HELOC initial | Lower initial, can increase |
Calculating Your Available Equity
``javascript
function calculateHomeEquity(homeValue, mortgageBalance, maxLTV = 0.85) {
const totalEquity = homeValue - mortgageBalance;
const maxBorrowable = (homeValue * maxLTV) - mortgageBalance;
const equityPercentage = ((totalEquity / homeValue) * 100).toFixed(1);
return {
totalEquity: totalEquity.toFixed(2),
equityPercent: equityPercentage + '%',
maxBorrowable: Math.max(0, maxBorrowable).toFixed(2),
currentLTV: (((mortgageBalance / homeValue) * 100)).toFixed(1) + '%'
};
}
function calculateHELOCPayment(creditLine, amountDrawn, rate, yearsRemaining) {
const monthlyRate = rate / 100 / 12;
const numPayments = yearsRemaining * 12;
// Interest-only payment during draw period
const interestOnly = amountDrawn * monthlyRate;
// Full P&I payment during repayment period
const fullPayment = amountDrawn * (monthlyRate * Math.pow(1 + monthlyRate, numPayments))
/ (Math.pow(1 + monthlyRate, numPayments) - 1);
return {
interestOnlyPayment: interestOnly.toFixed(2),
principalInterestPayment: fullPayment.toFixed(2),
unusedCredit: (creditLine - amountDrawn).toFixed(2)
};
}
``
Home Equity Loan Considerations
Most lenders allow you to borrow up to 80-85% of your combined loan-to-value (CLTV), meaning your mortgage balance plus home equity loan cannot exceed that percentage of your home's value. Interest on home equity debt may be tax-deductible if used for home improvements, but consult a tax professional for your specific situation.