$450k value, $250k mortgage, 85% LTV, request $75k, 7% APR, 15 years
- Max loan ≈ $132,500
- Approved = $75,000
- Payment ≈ $674
- Total interest ≈ $46,320
- Combined LTV ≈ 72.2%
finance calculator
Home Equity Loan Calculator
Check max loan based on LTV, estimate monthly payment, total interest, and combined LTV after borrowing.
Results
- Max loan (by LTV)
- $132,500
- Approved loan amount
- $75,000
- Estimated monthly payment
- $674
- Total interest
- $46,342
- Total paid over loan
- $121,342
- Combined LTV
- 72.22%
How to use this calculator
- Enter home value and current mortgage balance.
- Enter lender LTV limit, requested loan, APR, and term.
- Review max eligible loan, approved amount, payment, interest, and combined LTV.
Inputs explained
- Home value
- Estimated market value of the property.
- Mortgage balance
- Current payoff balance on your first mortgage.
- LTV limit
- Lender’s max combined LTV (often 80–90%).
- Requested loan
- Amount you want to borrow; capped at max allowed.
- APR
- Annual percentage rate for the home equity loan.
- Term
- Repayment term in years for the loan.
How it works
Max loan = (Home value × LTV limit) − mortgage balance.
Approved loan = min(requested, max). Payment uses standard amortization with APR and term.
Combined LTV = (mortgage balance + approved loan) ÷ home value.
Formula
Max loan = (Home value × LTV limit) − Mortgage balance Approved loan = min(Requested, Max) Monthly rate = APR ÷ 12 Payments = Term × 12 Payment = P × r(1+r)^n / [(1+r)^n − 1] Combined LTV = (Mortgage balance + Approved loan) ÷ Home value
When to use it
- Checking how much equity you can access before applying.
- Seeing how payment and interest change with different loan amounts or terms.
- Ensuring combined LTV stays within lender limits before moving forward.
Tips & cautions
- Use conservative home value estimates to avoid overestimating eligibility.
- Shorter terms raise the payment but lower total interest; longer terms do the opposite.
- If you’re near the LTV cap, be mindful of appraisal variability and lender overlays.
- Does not include lender fees, points, or PMI/HE loan fees—add separately if applicable.
- Assumes fixed-rate, fully amortizing loan; no draws like a HELOC.
- Eligibility depends on credit, income, and appraisal—this is a math estimate only.
Worked examples
$320k value, $210k mortgage, 80% LTV, request $70k, 8% APR, 20 years
- Max loan ≈ $46,000 (cap applies)
- Approved = $46,000
- Payment ≈ $386
- Total interest ≈ $46,640
- Combined LTV ≈ 80%
Deep dive
This home equity loan calculator shows your max eligible loan from your home value and LTV limit, then estimates payment, total interest, and combined LTV with your APR and term.
Use it to check eligibility and compare scenarios before talking to lenders or ordering an appraisal.
FAQs
- Does this include HELOC draw periods?
- No. This models a fixed-rate installment home equity loan. Use a HELOC-specific tool for draw/repay phases.
- Will I qualify if I’m below the max loan?
- Not guaranteed—lenders also check credit, income, DTI, and appraisal. This only shows math eligibility by LTV.
- What about fees or points?
- Not included. Add lender fees or points separately to see all-in costs.
- Does this add PMI?
- PMI typically applies to first mortgages over 80% LTV; home equity loans may have their own fee structure. This calculator doesn’t add PMI/fees.
- Appraisal risk?
- Yes. If appraisal comes in lower, max loan and combined LTV change. Use conservative values.
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Estimates only. Eligibility depends on lender underwriting, appraisal, income, and credit. Confirm details with your lender before proceeding.