Home Equity Loan Calculator
Calculate your monthly home equity loan payment at a fixed rate. Compare lump-sum loan costs vs. your HELOC option. Free home equity loan calculator.
Reviewed for accuracy by Marcus Webb and the Blueprint Dynamics editorial team (last updated July 2026). Our calculators use primary-source formulas and are cross-checked against IRS publications, Fannie Mae guidelines, and Federal Reserve data. Learn more about our methodology.
Source: Federal Reserve, Freddie Mac, Bankrate national averages. Rates are approximate ranges for borrowers with good credit (700+). Actual rates depend on your credit score, loan-to-value ratio, and lender.
Home Equity Loan Calculator
A fixed-rate lump sum borrowed against your equity, with predictable monthly payments.
Monthly Payment
$472
Borrowing $50,000 · Available equity: $145,000
Total Interest
$34,973
Total Cost
$84,973
What is a home equity loan?
A home equity loan lets you borrow a fixed lump sum against the equity you've built in your home, repaid in equal monthly installments over a fixed term at a fixed interest rate. It functions like a second mortgage — it sits behind your primary mortgage in lien priority — and the lender places a lien on your property as collateral. If you default, the lender can initiate foreclosure. Because of this security, home equity loans typically offer lower rates than unsecured personal loans for similar credit profiles.
How much can you borrow?
Lenders generally allow you to borrow up to 80–90% of your home's current market value minus what you owe on your mortgage. This combined loan-to-value (CLTV) limit determines your maximum. Example: Home value $450,000 × 85% CLTV = $382,500. Minus primary mortgage balance of $290,000 = maximum home equity loan of $92,500. Lenders also require a credit score typically above 620–680, verifiable income, and a debt-to-income ratio below 43–50%.
Home equity loan vs. HELOC
The fundamental difference is structure: a home equity loan delivers one lump sum at a fixed rate with predictable equal payments throughout the term — ideal for a known, one-time cost. A HELOC is a revolving line of credit at a variable rate — better for ongoing or uncertain costs. Choose a home equity loan when you know exactly what you need (a kitchen remodel bid, a medical procedure, a debt consolidation payoff), want payment predictability, and prefer protection from rising rates. Choose a HELOC when costs will unfold over time or you're not sure how much you'll need.
Best uses for a home equity loan
Home improvements that add value: kitchen and bathroom remodels, additions, or energy-efficiency upgrades often return 60–80% of cost in appraised value, while the interest may be tax-deductible (consult a tax advisor — the deduction applies when funds are used to "buy, build, or substantially improve" the home that secures the loan). Debt consolidation: replacing high-interest credit card debt (20–25% APR) with a home equity loan at 7–9% can save hundreds per month and thousands per year — but only works if you don't run the cards back up. Major one-time purchases: medical costs, college tuition, or business investment where you need a specific known amount.
Costs and what to compare
Home equity loans typically charge closing costs of 2–5% of the loan amount — a $50,000 loan might cost $1,000–$2,500 in fees. Some lenders offer no-closing-cost options but offset them with a slightly higher rate. Compare the APR (which includes fees) rather than just the interest rate. Also compare prepayment penalties if you might pay early, and whether the lender requires title insurance (most do). The total interest cost over the full term is the most important number for long-term planning — use this calculator to compare scenarios at different loan amounts and terms.