Home Equity Loan Payment Calculator | TheUSCalculator.com
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Home Equity Loan Payment Calculator

Calculate monthly home equity loan payments. Enter your loan amount, fixed interest rate, and term to see your exact payment and full amortization schedule.

✓ Free ✓ No Sign-up ✓ Instant Results ✓ Amortization Schedule

🏠 Home Equity Loan Payment Calculator

Free · Instant · No registration required

Loan Amount $50,000
$
Annual Interest Rate (APR) 8.5%
%
Loan Term 10 years
Term Unit
Monthly Payment
$0.00
per month
Principal
—
Total Interest
—
Total Cost
—
Payoff Date
—

⚠️ This calculator provides estimates for educational purposes only. Actual loan payments may vary based on your lender's specific terms, fees, and your credit profile. Consult a licensed financial advisor before making major financial decisions.

About This Home Equity Loan Payment Calculator

A home equity loan — also called a second mortgage — lets you borrow a lump sum against the equity you've built in your home at a fixed interest rate. Our calculator helps you find your exact monthly payment and total loan cost before you apply.

Because your home secures the loan, rates are typically much lower than personal loans or credit cards. In 2025, home equity loan rates average 8–10% for well-qualified borrowers. Most lenders allow you to borrow up to 80–85% of your home's value minus your existing mortgage balance.

Average Rate (2025)8.0%–10.0% APR
Max Borrowing (LTV)80–85% of home value
Common Loan Terms5, 10, 15, or 20 years
Minimum Equity Required15–20% of home value
Interest TypeFixed rate
Time to Close2–6 weeks typically

How to Use This Calculator

1

Calculate your available equity: home value × 80% − mortgage balance = max loan.

2

Enter the amount you want to borrow as the loan amount.

3

Enter the fixed interest rate quoted by your lender (shop at least 3 banks or credit unions).

4

Choose your repayment term — shorter terms save money but have higher payments.

5

Click Calculate to see your monthly payment and total cost.

How the Payment Formula Works

Our calculator uses the standard loan amortization formula used by all US banks, mortgage lenders, and credit unions:

// Standard Amortization Formula M = P × [ r(1+r)ⁿ ] / [ (1+r)ⁿ − 1 ]

// Variables: M = Monthly payment amount P = Principal (loan amount) r = Monthly interest rate (APR ÷ 12 ÷ 100) n = Total number of monthly payments (term in months)

Each payment covers two components: interest (charged on your remaining balance) and principal (which reduces your balance). In the early months, more of your payment goes toward interest. As your balance decreases, more goes toward principal — this is called front-loaded interest amortization.

Is a Home Equity Loan Right for You?

A home equity loan lets you borrow against the value built up in your property. Because the loan is secured by your home, interest rates are typically far lower than unsecured options — often 3 to 5 percent lower than personal loans and far below credit card rates. This makes home equity loans a popular choice for major renovations, debt consolidation, or large one-time expenses.

Most lenders allow you to borrow up to 80 to 85 percent of your home value minus what you still owe on your mortgage. For a home worth $400,000 with $250,000 remaining on the mortgage, you could borrow up to $90,000. Use this calculator to model different amounts and see exactly what your monthly payment would be at current rates.

The key difference between a home equity loan and a HELOC is how the funds are structured. A home equity loan delivers a lump sum at a fixed rate with fixed monthly payments — ideal for a single large expense. A HELOC works more like a revolving credit line with a variable rate. Our HELOC Payment Calculator lets you compare both options side by side.

Remember that your home is collateral. Only borrow what you can comfortably repay. If you prefer not to use your home as security, our Personal Loan Calculator can help you explore unsecured borrowing alternatives at competitive rates.

Frequently Asked Questions

A home equity loan gives you a lump sum at a fixed interest rate with predictable monthly payments — ideal for one-time expenses like a kitchen remodel. A HELOC (Home Equity Line of Credit) is a revolving credit line with a variable rate, similar to a credit card. HELOCs offer flexibility during the draw period but have less payment certainty due to variable rates.
Most lenders allow you to borrow up to 80–85% of your home's appraised value minus your outstanding mortgage balance. For example: if your home is worth $400,000 and you owe $220,000, you might borrow up to $100,000–$120,000 ([$400,000 × 85%] − $220,000 = $120,000).
Under the Tax Cuts and Jobs Act, home equity loan interest is only deductible if the loan is used to 'buy, build, or substantially improve' your home. Interest used for other purposes (debt consolidation, medical bills, vacations) is generally not deductible. Always consult a CPA or tax advisor for your specific situation.
The main risk is foreclosure — your home is collateral. If you default, the lender can foreclose on your property. Other risks include overleveraging your home, being underwater if property values drop, and increased monthly obligations straining your budget. Only borrow amounts you're confident you can repay.
The process typically takes 2–6 weeks including application, home appraisal, title search, and closing. Online lenders may offer faster timelines. Some banks offer home equity loans to existing customers with faster approval. Shop rates at your current bank, credit unions, and online lenders like Figure or Spring EQ.