How is a home equity loan different from a HELOC?

A home equity loan gives you a lump sum at a fixed rate — your payment stays the same every month. A HELOC is a revolving line of credit with a variable rate, like a credit card secured by your home.

What credit score do I need?

Most lenders require a credit score of at least 620–680 for a home equity loan. Better scores qualify for lower rates. Lenders also look at your debt-to-income ratio and loan-to-value ratio.

Can I borrow 100% of my equity?

Most lenders cap your combined loan-to-value (CLTV) at 80–85% of your home's value. So if your home is worth $400,000, total debt (mortgage + equity loan) shouldn't exceed $340,000.

Is home equity loan interest tax deductible?

Interest is deductible only if the loan is used to buy, build, or substantially improve your home. Interest used for debt consolidation or other purposes is not deductible under current tax law.

What are typical home equity loan rates?

Rates typically run 1–3% higher than first mortgage rates. In 2024–2025, rates ranged from 7–10% depending on credit score, LTV, and lender.

Finance

↵ to calculate

Home Equity Loan Calculator — HELOC Monthly Payment

Calculate your home equity loan monthly payment, available equity, and total interest.

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How to use this calculator

👉 Fill in the boxes below and your answer appears instantly — no maths needed, we do it all for you! 🎉

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In plain English — what does this do?

🏠 You want to buy something big (like a house or car) but you don’t have all the money right now. A bank gives you the money today, and you pay it back little by little every month. This tool tells you ‘how much do I pay each month?’

📌 Direct Answer & Summary

A home equity loan calculator helps homeowners estimate the monthly payment on a fixed-rate lump-sum loan secured by their home equity. Lenders typically allow you to borrow up to 85% of your home's value minus your outstanding mortgage balance.

Home Value ($)

Mortgage Balance ($)

Loan Amount ($)

Annual Interest Rate (%)

Loan Term (years)

What is Home Equity Loan Calculator — HELOC Monthly Payment?

How to use it

1️⃣ Enter your home's current market value.
2️⃣ Enter your current mortgage balance.
3️⃣ Enter the loan amount you want to borrow.
4️⃣ Enter the annual interest rate and loan term.
5️⃣ See your monthly payment, available equity, and total interest cost.

Formula

Available equity = home value × 85% − mortgage balance. Monthly payment = P × r(1+r)ⁿ / [(1+r)ⁿ − 1], where P = loan amount, r = monthly rate, n = months.

💡 See it in action — a real example

Home value $400,000, mortgage balance $200,000. Available equity = $340,000 − $200,000 = $140,000. Borrow $50,000 at 8.5% for 10 years: monthly payment ≈ $620. Total interest ≈ $24,400.

❓ Common questions

How is a home equity loan different from a HELOC?: A home equity loan gives you a lump sum at a fixed rate — your payment stays the same every month. A HELOC is a revolving line of credit with a variable rate, like a credit card secured by your home.
What credit score do I need?: Most lenders require a credit score of at least 620–680 for a home equity loan. Better scores qualify for lower rates. Lenders also look at your debt-to-income ratio and loan-to-value ratio.
Can I borrow 100% of my equity?: Most lenders cap your combined loan-to-value (CLTV) at 80–85% of your home's value. So if your home is worth $400,000, total debt (mortgage + equity loan) shouldn't exceed $340,000.
Is home equity loan interest tax deductible?: Interest is deductible only if the loan is used to buy, build, or substantially improve your home. Interest used for debt consolidation or other purposes is not deductible under current tax law.
What are typical home equity loan rates?: Rates typically run 1–3% higher than first mortgage rates. In 2024–2025, rates ranged from 7–10% depending on credit score, LTV, and lender.

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