Home equity calculator
Estimate how much you could borrow against your home and the payment on the amount you need.
Your numbers
Rates shown are editable examples, not current offers.
Estimated borrowing limit
$132,500With a combined loan-to-value limit of 85%, before the lender reviews your credit, income, and an appraisal.
- Current equity
- $200,000
- Combined loan-to-value now
- 55.6%
- After borrowing $40,000
- 64.4%
- Home equity loan payment
- $388
- Total interest on the home equity loan
- $29,850
- HELOC interest-only payment at 8.5%
- $283
Understand this estimate
Your borrowing limit is the lender’s combined loan-to-value limit times the home value, minus everything already secured by the home. Lenders set their own limits and also review credit, income, debt-to-income, and an appraisal, so the amount you can borrow may be lower. The home equity loan payment uses a fixed rate and equal monthly payments. The HELOC figure is an interest-only payment on the full amount at the rate you enter; HELOC rates are usually variable, and repayment of principal comes later. Excludes closing costs and other fees.
How the calculation works
Lenders usually cap everything secured by your home at a share of its value, called the combined loan-to-value (CLTV) limit. The calculator multiplies your home value by the limit you enter, then subtracts your mortgage balance and any other loans or lines secured by the home. What is left is the most you could borrow under that limit.
It then prices the amount you want two ways: as a fixed-rate home equity loan repaid in equal monthly payments over the term you choose, and as the interest-only payment a HELOC often requires while you can still draw on the line. The combined loan-to-value after borrowing shows how much of your home’s value would be pledged.
Worked example: a $450,000 home with $250,000 owed
At an 85% combined loan-to-value limit, total borrowing against a $450,000 home can reach $382,500. Subtracting the $250,000 mortgage leaves an estimated limit of $132,500; at an 80% limit it would be $110,000. Borrowing $40,000 raises the combined loan-to-value from 55.6% to 64.4%. As a 15-year home equity loan at 8.25%, the $40,000 costs $388.06 a month and $29,850 of interest over the full term. As a HELOC at 8.50%, the interest-only payment would be $283.33, but none of the $40,000 would be repaid until principal payments begin.
Common questions
What combined loan-to-value limit should I use?
Each lender sets its own, and it can depend on the product, your credit, and the property. Try a few limits to see how the answer changes, and ask lenders which limit they would apply to your home.
Why might I be able to borrow less than this?
The limit is only one test. Lenders also review your credit, income, and debt-to-income ratio with the new payment, and an appraisal may value the home lower than you expect. A lower value shrinks the limit.
Should I borrow the full amount available?
Not necessarily. Borrowing less leaves a cushion if home values fall or you need to sell sooner than planned, and it keeps the payment smaller. Start from what the project or expense actually costs.
Is a HELOC cheaper than a home equity loan?
Its early payments are often lower because they can be interest-only, but the rate is usually variable and the payment rises when repayment begins. The HELOC payment calculator shows that jump.
Related guides
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