Home Equity Loan Calculator
Home Equity Loan Calculator
By SoFi Editors | Updated October 16, 2025
Key Points
• A home equity loan calculator estimates the amount a homeowner might be able to borrow based on available home equity and shows what the monthly payments would be.
• Users will need to input estimated home value, current mortgage balance, preferred loan amount, preferred repayment term for the home equity loan, and potential interest rate.
• Home equity loans typically offer fixed interest rates and predictable monthly payments over five to 30 years.
• Before obtaining a home equity loan, it’s important to think about how payment will fit into your budget, how the loan might impact a home sale, and possible tax benefits.
Home Equity Loan Calculator
Calculator Definitions
• Home Value: Find the estimated market value of your home by searching your address on a real estate website such as Redfin or Zillow. For best results, use the current estimated value, not what you paid for your home originally.
• Current Mortgage Balance: This is the amount you still owe on your home loan. It’s also known as the principal.
• Repayment Term: This is the number of years you’ll require to repay your home equity loan. The longer the term, the lower the monthly payments will be, but the more interest you’ll pay over the life of the loan.
• Interest Rate: Interest is what you’ll pay the lender for the privilege of borrowing. The rate is usually expressed as a percentage of the amount you borrow. This calculator serves as a home equity loan rates calculator, because it bases your payment information on your interest rate. Your credit score will play a big role in the rates you’re offered.
• Equity: Your equity is your ownership stake in your home. Lenders typically like home equity loan borrowers to have at least 20% equity in their home. To see your equity percentage, subtract your mortgage balance from your estimated home value, then divide by your estimated home value.
How to Use the Home Equity Loan Calculator
Putting this free home equity loan calculator to work for you is easy, and results are ready in seconds.
Step 1: Enter Your Home Value
Research the estimated value on a real estate site, and type in the middle range of the amount.
Step 2: Enter Your Desired Loan Amount
Home equity loans pay you a lump sum, so add up all the things you might need to borrow for over the next few years and enter that amount. This calculator has a loan limit of $350,000.
Step 3: Enter Your Current Mortgage Balance
Find your current balance on your latest mortgage statement or on your loan servicer’s site.
Step 4: Enter Your Home Equity Loan Repayment Term
Choose the number of years you want to have to repay the home equity loan, from five to 30. The shorter the term, the higher your monthly payment will be.
Step 5: Enter Your Interest Rate
If you’re unsure, find current rates on home equity loans here.
Step 6: Review Your Results
The calculator will show you the maximum home equity loan you might qualify for, based on your home equity level, and what the monthly payment would be. You’ll also see your desired loan amount and its monthly payment. Apply for a loan amount that suits your needs and that has a monthly payment you can handle. The calculator will also show your equity percentage in the home. If your equity is less than 20% you likely won’t qualify for a home equity loan, but knowing the equity percentage will show you how close you are to the 20% mark.
Benefits of Using a Home Equity Loan Calculator
This home equity loan payment calculator will quickly show you how much you might be able to borrow based on the amount of equity you have in your home, as well as what the monthly payments on your desired home equity loan might look like. You can also use the calculator to experiment with different loan amounts and interest rates to find the monthly payment that best fits your budget.
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How to Use the Home Equity Loan Calculator Data to Your Advantage
The home equity loan calculator will show you your available equity amount. It’s helpful to have this number, because this is the amount of the home’s value that you have actually paid off, based on your mortgage principal balance.
It will also show you the estimated monthly payment on a home equity loan. You can use this information to have a close look at your monthly budget and decide whether you’ll be able to afford this payment while still paying off your mortgage and covering your other bills.
With a home equity loan, you’ll start making payments soon after you receive the lump-sum loan. If you determine the monthly payment is affordable, you can apply for a home equity loan. Completing the application will be similar to the mortgage preapproval process you might have gone through when you bought your house.
You’ll provide detailed financial information and information about your property, and the lender evaluating the mortgage preapproval or home equity loan application decides whether or not you qualify for the loan.
What Is a Home Equity Loan?
Before you decide to apply for a home equity loan, it’s important to make sure you understand what it is, and how it differs from other borrowing methods. With the cost of living being what it is these days, you might find you need a loan to accomplish your goals. Maybe you have a kitchen renovation planned, or perhaps you would like to use a lower-interest home equity loan to pay off higher-interest credit-card debt.
A home equity loan uses your home as collateral, providing you with a lump sum of money to use for pretty much any purpose you can think of. If you are still paying off your mortgage, the home equity loan is technically a second mortgage. The funds are disbursed all at once and you immediately begin repaying what you borrowed, plus interest, in equal monthly installments over a period of five to 30 years.
As with the mortgage rate on your home loan, your home equity loan interest rate is driven by market forces and by your personal creditworthiness. Because you’re using your home as collateral, interest rates are typically lower than those of unsecured personal loans. And the home equity loan’s fixed interest rate lets you enjoy the predictability of consistent monthly payments. To qualify, you’ll need at least 20% equity in your primary residence.
Current home equity loan rates by state.
Compare current home interest rates by state and find a home equity loan rate that suits your financial goals.
Select a state to view current rates:
Types of Home Equity Loans
You might hear that there are different kinds of home equity loans, just as there are different types of mortgage loans. It’s really more accurate to say that there are different ways to borrow against your equity. If you pursue a home equity loan, you get a lump sum and repayment starts immediately. Or you can consider one of these alternatives:
Home Equity Line of Credit (HELOC)
A home equity line of credit is like having a credit card but with a lower interest rate. You can borrow money as you need it, up to a certain limit, and pay interest only on the amount of the credit line you actually use.
Unlike a home equity loan, a HELOC has a “draw” period of up to 10 years, during which you can draw against the credit line but only pay interest. After the draw period, you’ll be in the repayment period where you pay back principal plus interest.
One big difference between a home equity loan and a HELOC is that HELOCs usually have a variable interest rate, so the amount you pay in interest will depend on your current balance and your changing rate. Another difference is that your credit line on a HELOC might be slightly larger than the amount you could borrow with a home equity loan. A HELOC could allow you to borrow up to 90% of your equity, while a home equity loan usually tops out at 85%.
Cash-Out Refinance
In a cash-out mortgage refinance, you replace your mortgage with a new, larger one and pocket the difference to use as you wish. The amount you can cash out is determined by your home equity, with most lenders allowing you to borrow up to 80%. The beauty of a cash-out refi is that you can choose between fixed or variable rates, and you’ll wind up with one monthly payment instead of paying for both a mortgage and a home equity loan or HELOC. Here’s a quick guide to a home equity loan vs. a cash-out refinance vs. a home equity line of credit:
| Home Equity Loan | HELOC | Cash-Out Refinance | |
|---|---|---|---|
| Borrowing Limit | Up to 85% of borrower’s equity | Up to 90% of borrower’s equity | 80% of borrower’s equity for most loans |
| Interest Rate | Fixed | Generally variable | May be fixed or variable |
| Type of Credit | Installment loan: Borrowers get a specific amount of money all at once that they then immediately begin repaying, with interest, in regular installments. | Revolving credit: Borrowers receive a line of credit. They have a draw period (5-10 years) during which they borrow and can only pay interest, followed by a repayment period (10-20 years) to repay the principal plus interest. | Installment loan: Borrowers receive a lump sum payment from the excess funds of their new mortgage, which has a new rate and repayment terms. |
| Repayment Term | Generally 5-30 years | A draw period of 5-10 years, followed by a repayment period of 10-20 years | Generally 15-30 years |
| Fees | Closing costs (typically 2%-5% of the loan amount) | Closing costs (typically 2%-5% of the loan amount), plus other possible costs, depending on the lender (annual fees, transaction fees, inactivity fees, early termination fees) | Closing costs (typically 2%-5% of the loan amount) |
Home Equity Loan Scenarios
As you are thinking about how to get equity out of your home, consider these examples of how things play out when you run the numbers with a free home equity loan calculator.
Scenario One: Homeowner Harris
Harriet Harris purchased a home in 2014 and has made steady mortgage loan payments over the last decade. She still owes about $120,000 on her original mortgage. Her home, located in one of the best affordable places in the U.S., has appreciated nicely, and real estate sites estimate it’s worth about $470,000.
She puts the price estimate and mortgage balance into the home equity loan payment calculator and it shows her that her home equity is $350,000. If her credit score is solid, she could borrow as much as 85% of her equity, or $297,500.
Homeowner Harris only wants to borrow $50,000, and the interest rate right now is 6.90%. She’d like to repay the loan in 10 years, before she retires. The home equity loan monthly payment calculator shows that her monthly payment would be about $600.
Scenario Two: John and Jane Newlywed
The Newlyweds were able to qualify as a first-time homebuyer and purchased their home just last year for $350,000, making a 10% down payment on the property and obtaining a 30-year loan at 7.00% interest. They have been making their mortgage payments steadily.
The home hasn’t appreciated much in value in such a short time, so the home value for the mortgage calculator is $350,000. Their current mortgage balance is $310,500. Using the home equity loan calculator, they learn that they have $39,500 in equity, which equates to about 11% equity in their home. Right now the Newlyweds would probably find it difficult to obtain a home equity loan, as they haven’t yet reached 20% ownership of their home.
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Home Equity Loan Tips
Before you move forward and apply for a home equity loan, take our advice on how to get the most out of the experience:
• Build a strong credit score Check in on your credit score before applying for a home equity loan. You’ll want to have a score of 680 or 700 to qualify and get a great rate. Keep up with your payments and don’t max out your credit cards, and you can ensure your score is sterling.
• Know how much you need to borrow With a home equity loan, you’ll ask to borrow a certain amount and, if you qualify, you’ll receive the funds all at once. If you are unsure about how much you need to borrow, a HELOC might be a better choice for you, because you can borrow as you need money.
• Have a payment plan Payments on your home equity loan will begin immediately, so make sure you’ll be able to pay the necessary amount each month. If you can’t make your payments, you risk losing your home to foreclosure.
• Make sure your home is well insured Lenders like to see that a home is well protected before they make a loan against it. If you have any uncertainty about your coverage, you can ask a prospective lender to share its requirements.
• Think about the future If you might be moving before the repayment term on your home equity loan is finished, you’ll need to pay off the home equity loan when closing on the sale of your home, which can affect your profits from the sale. Owing money on both a mortgage and a home equity loan might also affect your ability to qualify for a mortgage if you are buying a new home while selling your old one.
• Understand the potential tax benefits If you use a home equity loan to make significant improvements to your residence, the interest you pay on the loan may be deductible on your 2025 federal taxes. Work with your tax preparer to make sure you document everything properly. Your tax preparer can also keep tabs on how this rule might change in future tax years. Keep receipts and good records of any home-related expenses you pay with funds from the loan.
The Takeaway
A home equity loan can be a huge help if you need to cover the cost of a renovation or education expenses, and the interest rate you can get by using your home as collateral makes this a very appealing way to borrow. But it’s important to understand that your home is at risk if you fail to make your payments. Use a free home equity loan calculator to help ensure your monthly home equity loan payments fit into your budget. Then reach out to lenders to find the best available rate on a home equity loan to keep your expenses to a minimum.
FAQ
What is a home equity loan calculator and how does it work?
A home equity loan calculator tells you how large a home equity loan you might qualify for, based on your home’s value and your mortgage balance, and estimates your monthly payments for the loan. You’ll type in a few numbers and almost instantly learn your maximum loan amount, equity amount, and monthly payment amounts for both your max loan amount and your desired loan amount. Choose the loan size that works for you and that has a monthly payment you can handle.
What information do I need to input to get an accurate estimate?
To get an accurate estimate from a home equity loan calculator, you’ll need to put in your home’s approximate value (from a real estate site), your mortgage principal balance (from your lender’s site or your mortgage bill), your ideal repayment term (5 to 30 years), and the interest rate you think you might be able to obtain. You’ll also input your desired loan amount.
How does the calculator determine my home equity?
A home equity calculator determines the amount of equity you have in your home by dividing your mortgage principal balance by your home’s estimated value. If your home value changes, your equity level could change too.
Does the calculator consider my credit score or debt-to-income ratio?
This calculator does not evaluate your credit score or examine your debts. If you have a low credit score or high debts, it might be difficult to obtain a home equity loan. A prospective lender will look at your equity level, credit score, and debts when determining whether or not you qualify for a home equity loan and, if so, how much you might borrow.
Is the estimated monthly payment from the calculator the exact amount I will be required to pay?
The free home equity loan calculator provides an estimate of what you’ll be able to pay, but for the exact amount you would owe, you’ll need to check with a lender.
Does the calculator account for closing costs or other fees associated with the loan?
The calculator does not take into consideration the upfront costs or fees associated with a home equity loan. Some lenders offer to waive origination fees on home equity loans.
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