How much home equity loan can I get?
Multiply your home's value by a combined loan-to-value (CLTV) limit, then subtract what you owe. On a $500,000 home with $250,000 owed and a limit of 85%, the most you could tap is $175,000. The Consumer Financial Protection Bureau (CFPB) describes the amount as generally a percentage of the appraised value, minus what you owe on your mortgage.
Amount available = (home value × CLTV limit) − mortgage balanceLimits vary by lender, and approval is up to the lender, so the calculator treats the limit as your assumption. Ask each lender for its own figure.
| Mortgage balance | 75% limit | 80% limit | 85% limit | 90% limit |
|---|---|---|---|---|
| $100,000 | $275,000 | $300,000 | $325,000 | $350,000 |
| $200,000 | $175,000 | $200,000 | $225,000 | $250,000 |
| $300,000 | $75,000 | $100,000 | $125,000 | $150,000 |
| $400,000 | $0 | $0 | $25,000 | $50,000 |
What is the monthly payment on a home equity loan?
A fixed-rate home equity loan has one level payment. $100,000 at 8% costs $1,213 a month over 10 years and $836 over 20. The formula is the standard one, where P is the amount, r the monthly rate, and n the number of payments.
M = P × r(1 + r)^n ÷ ((1 + r)^n − 1)For $75,000 at 8.25%, r is 0.006875 and n is 180, so the payment is $728. Note that the CFPB says home equity loans can carry a fixed or an adjustable rate, so confirm which one you're offered. This calculator assumes fixed.
| Amount | 10 years | 15 years | 20 years | 30 years |
|---|---|---|---|---|
| $25,000 | $307 | $243 | $213 | $188 |
| $50,000 | $613 | $485 | $426 | $376 |
| $75,000 | $920 | $728 | $639 | $563 |
| $100,000 | $1,227 | $970 | $852 | $751 |
| $150,000 | $1,840 | $1,455 | $1,278 | $1,127 |
| $200,000 | $2,453 | $1,940 | $1,704 | $1,503 |
A longer term lowers the payment and raises the cost. Stretching $75,000 from 10 years to 20 drops the payment from $920 to $639 and adds $42,984 of interest.
Home equity loan, HELOC, or cash-out refinance: which costs less?
It depends on the rate on your first mortgage. A cash-out refinance replaces your whole mortgage, so you give up its rate on every dollar you already owe. Here, keeping a 4.5% mortgage and adding the loan costs $223,343 in interest and costs to payoff. A 6.75% cash-out over 30 years costs $441,863, even though its rate is lower than the loan's.
| All home debt | Home equity loan | HELOC | Cash-out refinance |
|---|---|---|---|
| Payment now | $2,117 | $1,921 | $2,108 |
| Highest payment | $2,117 | $2,040 | $2,108 |
| Interest in 10 years | $146,382 | $162,146 | $205,182 |
| Still owed after 10 years | $217,319 | $256,646 | $277,229 |
| Interest and costs to payoff | $223,343 | $311,832 | $441,863 |
| Debt-free in | 25 yrs | 30 yrs | 30 yrs |
A useful test is your blended rate: the average rate on all your home debt, weighted by balance. Here it's 5.37%. A cash-out above that charges more interest in the first month, no matter how good its rate looks alone. To model a cash-out in detail, use the refinance calculator. For more on a line of credit, use the HELOC calculator.
The CFPB's comparison notes the trade-offs. A home equity loan has equal payments, and you'd apply again for more. A HELOC lets you borrow and repay for years, with a payment that varies. A cash-out means one mortgage payment, generally higher closing costs, and possibly a longer payoff.
How much do extra payments save on a home equity loan?
Extra payments cut your balance sooner, so less interest builds. Adding $250 a month to the example loan saves $24,013 and finishes 5 yrs 10 mos early. Check for a prepayment penalty first. The calculator's amortization schedule shows every payment, and you can download it.
| Extra a month | Paid off in | Total interest | Interest saved |
|---|---|---|---|
| $0 | 15 yrs | $55,968 | $0 |
| $100 | 11 yrs 11 mos | $42,845 | $13,123 |
| $250 | 9 yrs 2 mos | $31,955 | $24,013 |
| $500 | 6 yrs 8 mos | $22,610 | $33,359 |
Is home equity loan interest tax deductible?
Only in limited cases. IRS Publication 936 (2025) says that no matter when the debt was incurred, you can't deduct interest on a loan secured by your home to the extent the proceeds weren't used to buy, build, or substantially improve the home. So money spent on a car or card debt doesn't qualify.
Even when the money does go to the home, you have to itemize on Schedule A, and overall mortgage debt limits apply: for debt taken on after December 15, 2017, interest on the first $750,000 ($375,000 if married filing separately). Because this depends on your full return, the calculator leaves tax out. A tax professional or the free IRS guidance can check your case.
What a low monthly payment can hide
- You add a second bill. In the example, your total payment on home debt is $2,117 a month, not $728. Check that total against your budget with the home affordability calculator, which shows common income rules.
- Your home backs the debt. The CFPB lists your home as at risk for this kind of loan. Moving card balances here can lower the rate, but it turns unsecured debt into debt that could cost you the house.
- Prices can fall. At 65% combined loan-to-value, a 35% drop in value leaves you owing what the home is worth. The CFPB notes repayment is often required when you sell, so a price drop can limit your options.
- Rates here are examples. The result only holds at the rate and costs you enter. Your Loan Estimate is the document to rely on.
If you're using home equity to get through a rough patch, a HUD-approved housing counselor can review your options, often at little or no cost.
Common questions
What is combined loan-to-value (CLTV)?
It's everything you owe against the home divided by its value. With $325,000 owed on a $500,000 home, your CLTV is 65%. Lenders use it to set how much you can borrow, and each sets its own limit.
What are the current home equity loan rates?
This site doesn't publish rates, because they change and depend on your credit, your CLTV, and the lender. Enter a quote you've received to see its real cost.
Do I pay closing costs on a home equity loan?
You may. Enter your costs in the calculator, and it shows your APR with them included. On this example, $500 in costs is small next to $55,968 in interest, but compare the Loan Estimates line by line.
Does this calculator need my personal information?
No. It runs in your browser with the numbers you type. It's not an application, and it doesn't check your credit.
What happens to my first mortgage?
Nothing changes on it. A home equity loan is a second loan, and you keep the first mortgage's rate and payment. That's the main difference from a cash-out refinance.
Sources
- What you should know about home equity lines of credit · Consumer Financial Protection Bureau
- What is the difference between a home equity loan and a HELOC? · Consumer Financial Protection Bureau
- Publication 936: Home Mortgage Interest Deduction · Internal Revenue Service
- Find a housing counselor · Consumer Financial Protection Bureau