Home Equity Loan Calculator
A home equity loan is a fixed-rate loan secured by your home, paid back in equal payments. Because your home is collateral, missing payments can put it at risk. Sample rate and fee are placeholders — use your lender’s numbers.
Home Equity Loan calculator
Move the sliders or type your own numbers. Sample amounts and rates are placeholders — enter the figures from your lender’s Loan Estimate or offer.
📊 Principal and interest by year
Early payments are mostly interest; the principal share grows every year. Hover or tap a bar for details.
📅 Amortization schedule
Year-by-year summary — tap “+” to see every month. Download the full monthly schedule as a spreadsheet.
⚡ Extra payments — how much can you save?
Test a one-time extra payment, a fixed extra amount each month, or a yearly lump sum. Extra principal payments cut the balance that interest is charged on, so earlier ones save the most.
🔄 Refinance break-even
Enter a new rate, term and closing costs to see the new payment and how many months it takes to recover the costs.
⚖️ Compare loan offers side by side
Enter up to three offers. The best deal has the lowest total cost (interest plus fees), not necessarily the lowest rate or payment.
🏡 Affordability — how much can you borrow?
Lenders compare your monthly debt payments to your gross monthly income (debt-to-income, or DTI). This shows the payment your income supports at the DTI you choose.
ℹ️ About home equity loan payments
A home equity loan is a fixed-rate loan secured by your home, paid back in equal payments. Because your home is collateral, missing payments can put it at risk. Sample rate and fee are placeholders — use your lender’s numbers.
| Topic | Details |
|---|---|
| Security | Your home is collateral |
| Payments | Fixed amount each month for a set term (a HELOC, by contrast, is a variable credit line) |
| Combined loan-to-value (CLTV) | Lenders limit total borrowing against the home as a share of its value |
| Tax | Interest may be deductible only if the funds are used to buy, build or substantially improve the home securing the loan; ask a tax professional |
Tips to lower your home equity loan cost
- Compare closing costs and APR across lenders.
- Borrow only for purposes that justify putting your home at risk.
- Compare with a cash-out refinance, which changes your first mortgage rate.
📝 Documents you need and how to apply for a home equity loan
- Ownership of a home with enough equity
- Combined loan-to-value within the lender’s limit
- Verifiable income and acceptable credit
- Willingness to use your home as collateral
- Government-issued photo ID and Social Security number
- Proof of income (pay stubs, tax returns)
- Most recent mortgage statement
- Proof of homeowners insurance
- Property tax bill
- An appraisal, which the lender usually orders
How to apply, step by step
- Estimate your equity: home value minus what you owe.
- Compare home equity loan offers on APR, closing costs and term (and compare with a cash-out refinance).
- Submit your application and documents.
- The lender orders an appraisal and reviews your file.
- Review the closing documents and sign; there may be a waiting period after signing for certain home loans.
Timelines vary; ask the lender. Every lender sets its own requirements, so confirm the list with the lender before you apply.
🧮 How a loan payment is calculated
Worked example
| Step | Value |
|---|---|
| Loan amount (P) | $50,000 |
| Monthly rate (r) | 8.5% ÷ 12 = 0.007083 |
| Payments (n) | 15 × 12 = 180 |
| (1 + r)n | 3.5627 |
| Monthly payment (principal & interest) | $492.37 |
| Total interest | $38,627 |
| Total of payments | $88,627 |
How the term changes the payment ($50,000 at 8.5%)
| Term | Payment | Total interest | Interest vs loan |
|---|---|---|---|
| 7 years | $791.82 | $16,513 | 33% |
| 10 years | $619.93 | $24,391 | 49% |
| 15 years | $492.37 | $38,627 | 77% |
| 20 years | $433.91 | $54,139 | 108% |
| 25 years | $402.61 | $70,784 | 142% |
| 30 years | $384.46 | $88,404 | 177% |
How the rate changes the payment ($50,000 for 15 years)
| Rate | Payment | Total interest |
|---|---|---|
| 7.5% | $463.51 | $33,431 |
| 8% | $477.83 | $36,009 |
| 8.5% | $492.37 | $38,627 |
| 9% | $507.13 | $41,284 |
| 9.5% | $522.11 | $43,980 |
Loan calculator FAQs
Home equity loan vs HELOC?
A home equity loan is a lump sum with fixed payments; a HELOC is a revolving line of credit, usually with a variable rate.
What is amortization?
Amortization is paying off a loan with fixed payments over time. Each payment covers that month’s interest and reduces the principal; over time a larger share goes to principal.
Is the result exactly what my lender will charge?
It is a close estimate. Lenders may calculate interest daily, use a different first-payment date or round differently. Your loan documents and repayment schedule are final.
What is APR?
The annual percentage rate expresses the yearly cost of a loan, including interest and certain fees. Lenders must show it in their Truth in Lending disclosures.
Should I make extra payments?
Extra payments toward principal reduce total interest and can shorten the loan. Check that there is no prepayment penalty and that extra money is applied to principal.
What happens if I miss a payment?
You may owe a late fee, and lenders can report late payments to the credit bureaus, which can lower your credit score. Contact your lender early if you expect trouble paying.
Results are illustrations based on the numbers you enter, not a loan offer, pre-approval or financial advice. Loan terms, rates and fees vary by lender and borrower.