Home Equity Loan Calculator
Use this tool to estimate the payment and total interest on a fixed-rate second mortgage. Enter the amount, rate and term to price borrowing against your home equity.
Enter your numbers and press Calculate. Nothing you type leaves your browser.
How this calculator works
A home equity loan is a fixed-rate installment loan secured by your house, with level payments across a set term.
M = P * r * (1 + r)^n / ((1 + r)^n - 1)
- P = amount borrowed against your equity
- r = monthly rate = annual rate / 12 / 100
- n = number of monthly payments
Total interest is M * n - P. The home secures the loan, which can mean a lower rate than an unsecured personal loan — but the house is the collateral.
The term and rate depend on the lender, your credit profile and the loan-to-value. Use your own working figure rather than a quoted one.
Common questions
How is this different from a HELOC?
A home equity loan hands you a lump sum at a fixed rate, repaid in level installments. A HELOC, by contrast, is a revolving line whose rate floats and whose draw period ends.
Which term applies to me?
Take the term from your offer, or the one you are weighing. Terms vary, so enter the one that fits your case.
Why do home equity rates run lower?
The home backs the loan, so the lender carries less risk than on an unsecured loan. The catch is that the home stands as collateral.
Is the interest deductible?
It depends on how you use the funds and on current tax rules. A tax professional can advise on your case; this tool does not touch taxes.