Home Equity Loan Calculator

Calculate home equity loan payment from equity, amount, rate, and term.
$
$
%
yrs

Monthly Payment

$463.51

Total Interest

$33,431.11

Loan Summary

Monthly Payment$463.51
Total Paid$83,431.11
Total Interest$33,431.11

Use the Home Equity Loan Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

How It Works

Our Home Equity Loan Calculator helps you estimate your monthly payments for a home equity loan, allowing you to budget effectively for renovations, debt consolidation, or other financial goals. Understanding these payments is crucial in 2026, as interest rates and home values continue to fluctuate. This tool provides clarity on your financial commitment.

This calculator uses the standard amortization formula to determine your monthly payment (M): M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1], where P is the principal loan amount, i is the monthly interest rate (annual rate divided by 12), and n is the total number of payments (loan term in years multiplied by 12). It assumes fixed interest rates for the duration of the loan.

A common mistake is underestimating the impact of interest rates on long-term payments; even small rate differences can significantly alter your total cost. Another error is borrowing more than you truly need, which can lead to unnecessary financial strain. Always consider your ability to repay comfortably.

Example: Home Renovation Project

  1. 1 Imagine you want to take out a $50,000 home equity loan for a kitchen renovation. Your bank offers you a 7.25% annual interest rate over a 15-year term. You have sufficient home equity to secure this amount.
  2. 2 Inputting these values into the calculator: Loan Amount = $50,000, Annual Interest Rate = 7.25%, Loan Term = 15 years (180 months). The calculator will then apply the amortization formula.
  3. 3 The calculated monthly payment for this home equity loan would be approximately $456.12. This payment covers both the principal and interest over the 15-year period.
  4. 4 Knowing this monthly payment allows you to assess if it fits within your budget. You can compare this to other financing options, such as a cash-out refinance or a personal loan, to ensure you're making the most financially sound decision for your home renovation in 2026.

Source: CFPB — Owning a Home · Last updated: April 2026

Frequently Asked Questions

How much can I borrow with a home equity loan?
Most lenders allow you to borrow up to 80-85% of your home's value minus your remaining mortgage balance. If your home is worth $400,000 and you owe $250,000, you could borrow up to $70,000-$90,000 (at 80-85% LTV).
What is the interest rate on a home equity loan?
Home equity loan rates are typically 1-2% higher than first mortgage rates. As of 2026, rates range from 7-10% depending on your credit score, LTV ratio, and loan amount. Rates are fixed for the life of the loan, providing predictable monthly payments.
Is home equity loan interest tax deductible?
Yes, if the funds are used to buy, build, or substantially improve the home that secures the loan. The interest is deductible on combined mortgage debt up to $750,000. Interest on home equity loans used for other purposes (like paying off credit cards) is not deductible.

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