Free tool
Home equity loan calculator
Estimate a lump-sum, fixed-rate home equity loan with fully amortizing monthly payments. See the payment, interest, upfront cash fees and remaining balance each year. Defaults are illustrative, not current rates. Your entries stay in your browser.
| Year | Principal | Interest | Balance |
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Illustrative estimate, not a loan offer or approval. Fixed-rate, fully amortizing monthly payments; no extra payments, balloon or interest-only period. Cash fees are not financed. Excludes taxes, insurance, HOA dues, tax effects and prepayment penalties. Existing mortgage amount is principal and interest only. Lender rounding may differ. Your home secures the loan and may be at risk if you cannot repay.
Home equity loan versus home equity line of credit
A home equity loan provides a lump sum. This calculator models a fixed-rate repayment schedule. Home equity loans can also have adjustable rates, which this model does not cover. A HELOC permits repeated draws and usually has a variable rate; use the separate HELOC calculator for that scenario.
What the totals mean
New monthly principal and interest is the new loan payment alone. If you enter your existing mortgage principal and interest, a separate line adds the two; it does not include escrow or other household expenses. Total borrowing cost is interest over the full term plus the cash-paid fees you enter. Total new-loan payments plus cash fees also includes repayment of the borrowed principal.
Fees are assumed paid separately at closing. If a fee is financed, add it to the loan amount and exclude it from the cash-fees box to avoid counting it twice. This tool does not calculate APR or compare affordability.
Equity is not approval
For current equity and room under a chosen combined loan-to-value cap, use the home equity calculator. Actual eligibility and borrowing limits depend on lender requirements and the property. Borrowing against your home can put it at risk if repayments are missed.
Sources checked October 8, 2026: CFPB: home equity loans and CFPB: loan versus line of credit. Compare actual lender quotes and fees.
Common questions
How is a home equity loan payment calculated?
For a fully amortizing fixed-rate loan, the monthly payment is principal times monthly rate divided by one minus (one plus monthly rate) to the negative number of payments. At zero interest, principal is divided by the number of payments. This calculator uses unrounded monthly values and caps the final payment at the remaining amount owed.
Is this the same as a HELOC?
No. This models a lump-sum home equity loan with a fixed interest rate and monthly principal-and-interest payments throughout the term. A HELOC allows repeated draws and usually has a variable rate. Interest-only, balloon and adjustable-rate loans are outside this model.
Should I enter the interest rate or APR?
Use the quoted annual interest rate, not APR. APR includes some loan costs and is not the rate used to calculate this monthly payment. Enter upfront cash fees separately; this tool does not calculate APR.
How are fees handled?
Fees entered here are paid separately upfront and do not increase the loan balance. Total interest plus these fees is the estimated borrowing cost. If fees will be financed, include them in the loan amount and do not also count them as cash-paid fees.
How much home equity can I borrow?
This payment calculator does not determine eligibility or a borrowing limit. Use the separate home equity calculator for equity and a user-selected loan-to-value cap, then confirm the appraisal, existing liens, lender limits, income and credit requirements with a lender.
Does this replace my first mortgage payment?
No. A new home equity loan generally adds another payment when an existing mortgage remains. The optional existing monthly principal-and-interest amount is added only for a payment comparison. Taxes, insurance, HOA dues and other debts are excluded.
Are the example rate and fees current lender quotes?
No. Defaults illustrate the arithmetic. Enter your own lender quote. This is an estimate, not approval or an offer. Your home secures the loan and may be at risk if you cannot repay.
Are my entries stored?
No. The calculation runs in your browser without sending or storing form entries. Optional consent-based analytics count print, PNG and copy actions by tool name without including your amounts.
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