Thinking about tapping into your home's equity? Our Home Equity Loan Calculator estimates the maximum amount you can borrow based on your home's value, existing mortgage balance, and typical loan-to-value (LTV) ratios set by lenders.
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Our Home Equity Loan Calculator estimates how much you could borrow against your home's value, and what your monthly payment would be based on loan terms. Typically, lenders allow borrowing up to 80%–90% of your home's appraised value minus your existing mortgage balance.
First, we calculate your total available equity:
Max Borrowable Amount = (Home Value × Max LTV%) - Current Mortgage Balance.
Then, we estimate the monthly loan payment using standard amortization:
Monthly Payment = [r(1+r)^n] / [(1+r)^n -1] × Loan Amount,
where r is monthly interest rate and n is number of months.
As with any mortgage, early payments are mostly interest, but over time you pay off more principal. We clearly separate principal and interest in your total monthly cost estimates.
Tips: Borrowing less than the maximum allowed can improve your chances of approval. Choosing a shorter term loan may raise monthly payments but save thousands in total interest.