Home Equity Loan Calculator

Lenders typically let you borrow up to a maximum combined loan-to-value (CLTV) ratio, commonly 80-85% of your home's value, including your existing mortgage. Available equity = (home value × max LTV%) − current mortgage balance. For example, an $400,000 home with an 85% max LTV and a $250,000 mortgage balance gives $90,000 in available equity.

A home equity loan gives you a lump sum upfront at a fixed rate, repaid in equal installments — this calculator models that structure. A HELOC (home equity line of credit) works more like a credit card with a variable rate and a draw period, letting you borrow and repay repeatedly up to your limit.

It protects the lender if home values decline — keeping some cushion of equity in the home reduces the lender's risk of losing money if they need to foreclose. The exact max LTV varies by lender, your credit score, and loan type; 80-85% is typical, though some lenders go up to 90% for well-qualified borrowers.

Interest may be deductible if the loan funds are used to buy, build, or substantially improve the home securing the loan, per current IRS rules — interest used for other purposes (debt consolidation, tuition, etc.) generally isn't deductible. Consult a tax professional for your specific situation.

Most lenders want your total monthly debt payments (including your mortgage, this new loan, and other debts like car loans or credit cards) to stay at or below 43-45% of your gross monthly income, though some lenders allow up to 50% for well-qualified borrowers. Enter your other monthly debts and income below to see your estimated DTI with this loan included.