Calculate home equity loan payments and borrowing power. Compare fixed-rate home equity loans and HELOCs to find the best option for your needs.
Fixed interest rate and payment amount
A home equity loan provides a lump sum with fixed payments, while a HELOC is a revolving credit line with variable rates. Home equity loans are better for one-time expenses, while HELOCs offer flexibility for ongoing needs. Both use your home as collateral and typically have lower rates than personal loans.
Most lenders allow you to borrow up to 80-85% of your home's value minus your current mortgage balance. For example, if your home is worth $500,000 and you owe $300,000, you might be able to borrow up to $100,000-$125,000. Some lenders offer higher limits but with stricter requirements.
The main risk is that your home serves as collateral, so defaulting could result in foreclosure. HELOCs have variable rates that can increase over time. Also, taking on more debt reduces your home equity and increases your monthly obligations. Consider your ability to make payments before borrowing.
Consider a home equity loan when you need funds for home improvements, debt consolidation, or major expenses and can secure a lower rate than other financing options. It's particularly beneficial when you have significant equity and can use the funds to increase your home's value or reduce high-interest debt.
This free equity loan calculator runs entirely in your browser using standard mathematical formulas. Enter your figures, tap Calculate, and results update instantly — no signup required.
Figures are estimates for general information. Always verify important decisions with a qualified professional where relevant.