Home Equity Loans Calculator
Estimate your available equity, borrowing capacity, monthly payments and interest.
Property and existing debt
Loan details
Your estimated results
This tool provides illustrative estimates, not a lender quote, appraisal, financial recommendation or eligibility assessment. Actual rates, fees, borrowing limits, payment schedules and approval criteria vary by lender and location. A home equity loan or HELOC is secured against your home, which may be at risk if you do not repay as agreed.
How to Use This Calculator
Start by entering your home’s estimated current market value and your remaining mortgage balance. If you have any other loans secured against the property, include those as well.
Next, choose a maximum combined loan-to-value (CLTV) percentage. This is the limit you want to use for your estimate. Enter the amount you are considering borrowing, your estimated annual interest rate, and the repayment term.
You can select a fixed home equity loan or a home equity line of credit (HELOC). For a HELOC, enter the draw period and repayment period. You can also add extra monthly repayments or test a different interest rate to compare potential payment changes.
The calculator will show your estimated equity, borrowing capacity, monthly payments, total interest, and remaining equity after the modeled borrowing.
What Is Home Equity?
Home equity is the difference between your property’s current value and the total debt secured against it. It represents the portion of the property’s value that is not covered by those debts. <Cite refs={[“turn775174search0”]}/>
For example, if your property is worth ₹80,00,000 and your outstanding mortgage is ₹35,00,000, with no other secured debt, your estimated home equity is ₹45,00,000.
However, having equity does not mean you can borrow the full amount. Lenders may consider the property’s value, your income, credit history, existing debt, and their own lending criteria.
How Much Can You Borrow Against Your Home?
The calculator estimates borrowing capacity using a selected combined loan-to-value ratio. This compares the total secured debt against the property’s estimated value.
Estimated borrowing capacity = (Home value × Maximum CLTV) − Existing secured debt
For example:
- Current home value: ₹80,00,000
- Existing mortgage: ₹35,00,000
- Other secured debt: ₹0
- Assumed maximum CLTV: 80%
The estimated borrowing capacity would be ₹29,00,000. This is a mathematical estimate based on the selected CLTV, not a lender’s approval or a recommended amount to borrow.
Home Equity Loan vs. HELOC
A home equity loan usually provides a lump sum that is repaid over a set period, often through regular principal-and-interest payments. A HELOC is a revolving credit line that allows borrowers to draw funds up to an approved limit. HELOCs may have a draw period followed by a repayment period, and their interest rates are often variable.
A fixed home equity loan can be modeled with a regular payment at the entered interest rate and term. A HELOC can have different payment requirements during its draw and repayment periods, depending on the lender’s terms.
How Are Monthly Payments Calculated?
For a fully amortizing loan, the monthly payment depends on the amount borrowed, the monthly interest rate, and the total number of monthly payments.
The calculator uses the standard amortizing-loan formula:
Monthly payment = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1)
Where:
- P is the loan principal.
- r is the monthly interest rate expressed as a decimal.
- n is the total number of monthly payments.
At a 0% interest rate, the principal is divided evenly across the payment term. The calculation excludes fees, insurance, taxes, and other costs that may apply to an actual loan.
For the HELOC estimate, the draw-period payment is modeled as interest-only on the full assumed initial draw. The repayment-period estimate then models that balance as a fully amortizing loan.
Can Extra Payments Reduce Interest?
Additional repayments can reduce the outstanding principal faster, which may reduce the total interest paid and shorten the repayment period. The actual effect depends on the lender’s rules, payment timing, and any applicable early-repayment charges.
Use the extra monthly repayment field to compare a regular repayment estimate with a scenario that includes additional monthly payments.
Important Things to Consider
A home equity loan or HELOC is secured against your property. If you cannot meet the repayment terms, you may risk losing your home. Interest rates, fees, valuation methods, and borrowing limits also vary across lenders and jurisdictions.
Use the results as an initial planning estimate, and confirm the actual costs and terms with a qualified lender or financial professional before making a borrowing decision.
Frequently Asked Questions
How much equity do I have in my home?
Subtract your outstanding mortgage and other secured property debts from the estimated current value of your home. The result is your estimated equity.
Does home equity equal the amount I can borrow?
No. The amount available to borrow may be lower than your equity. Lenders may apply a maximum CLTV limit and review your income, credit profile, property details, and other requirements.
What is a good CLTV limit to enter?
Use the limit provided by your lender if you have one. Otherwise, try different illustrative percentages to see how the estimated borrowing capacity changes. There is no single limit that applies to every borrower or location.
Does this calculator guarantee loan approval?
No. It provides estimates based on the figures you enter. A lender makes its own assessment of eligibility, affordability, property value, and loan terms.
Can I use this calculator for a HELOC?
Yes. Select HELOC and enter the assumed amount drawn, interest rate, draw period, and repayment period. The estimate assumes the entire entered amount is drawn at the start and that the interest rate stays unchanged throughout the modeled periods.
Does choosing another currency convert the loan?
No. The currency selector changes how amounts are displayed. It does not convert values using exchange rates. Enter all financial amounts in the currency selected.
Are closing costs included?
No. This version estimates principal and interest and does not include lender fees, closing costs, insurance, taxes, or other charges. Your actual borrowing costs may therefore be higher.
Can I repay a home equity loan early?
That depends on your loan agreement and local rules. Some lenders allow extra repayments without a charge, while others may impose restrictions or fees. Check the terms of your specific loan before making additional payments.