Home Equity Loan Payment Calculator
Estimate your monthly payment, total interest, repayment time, and potential savings from extra payments. Adjust the inputs to compare different loan scenarios.
Loan details
Home equity details (optional)
Equity and combined loan-to-value figures are estimates, not loan approval or borrowing limits.
Your estimated results
Illustrative estimates only. Actual rates, fees, payment schedules, and loan terms may differ.
Yearly amortization schedule
View the estimated principal and interest paid each year and the remaining balance. Extra monthly payments are included if entered.
| Year | Principal paid | Interest paid | Total paid | Remaining balance |
|---|---|---|---|---|
| Enter valid loan details to view the schedule. | ||||
Home Equity Loan Monthly Payment Calculator
A home equity loan allows homeowners to borrow against the equity they have built in their property. It is commonly structured as a lump-sum loan that is repaid through regular installments over an agreed period. Before applying, it is useful to understand how much the loan could cost each month and how much interest may accumulate over the repayment term.
Our Home Equity Loan Monthly Payment Calculator helps you estimate your monthly payment, compare interest rates, explore different loan terms, and understand the potential cost of borrowing. You can also include extra monthly payments to see how paying down the principal faster may affect your repayment timeline.
How to Use the Calculator
Using the calculator is straightforward. Enter your loan information to see an estimate of your monthly payment and overall borrowing costs.
- Enter the loan amount: Add the amount you intend to borrow against your home equity.
- Choose your interest rate: Enter the annual interest rate offered by a lender or a rate you want to explore.
- Select the loan term: Enter the number of years over which you plan to repay the loan.
- Add loan fees: Include any estimated origination or closing fees, if known, and choose whether to pay them upfront or finance them.
- Enter extra payments: If you plan to pay additional principal each month, enter that amount to estimate potential interest savings.
- Compare another interest rate: Optionally enter a second rate to compare the estimated monthly payment.
- Add home details: You can enter your home’s estimated value and existing mortgage balance to see an estimated equity position and combined loan-to-value ratio.
The calculator updates the estimated results as you change the inputs. These estimates are for planning purposes and do not represent a loan offer or approval.
How Is a Home Equity Loan Monthly Payment Calculated?
A typical fixed-rate home equity loan has a set interest rate and repayment term. Each regular payment includes an interest portion and a principal portion. At the beginning of the loan, a larger share of the payment generally goes toward interest. Over time, more of the payment goes toward reducing the principal.
The standard monthly payment formula is:
M = P × [r(1 + r)^n] ÷ [(1 + r)^n − 1]
Here, M is the monthly payment, P is the loan principal, r is the monthly interest rate, and n is the total number of monthly payments.
For example, if you borrow $50,000 at a 7.5% annual interest rate and repay it over 15 years, your estimated monthly principal and interest payment is about $463.56. Your actual payment may differ depending on the final loan amount, lender terms, fees, and payment schedule.
What Affects Your Monthly Payment?
Several factors determine how much you may need to repay each month.
Loan Amount
The amount you borrow has a direct effect on your monthly payment. A larger loan generally results in a higher payment and more total interest if the interest rate and repayment term stay the same.
Borrowing only what you need may help you keep your repayment costs manageable.
Interest Rate
The interest rate affects both your monthly payment and the total interest paid over the life of the loan. Even a relatively small change in the rate can make a difference over a long repayment period.
You can use the comparison-rate field in the calculator to explore how a different rate could affect your estimated payment.
Repayment Term
The loan term is the amount of time you have to repay the loan. A longer term usually reduces the required monthly payment but may increase the total interest paid. A shorter term typically means higher monthly payments but less interest over the full term.
Consider both the monthly payment and total borrowing cost when comparing terms.
Additional Principal Payments
Some borrowers choose to pay more than the required monthly amount. When additional payments are applied directly to principal, they can reduce the outstanding balance faster, potentially lowering total interest and shortening the repayment period.
Check your lender’s terms for any prepayment restrictions or fees and confirm how extra payments are applied.
Loan Fees
Home equity loans may include origination, appraisal, title, or other closing costs. Some fees may be paid upfront, while others may be included in the loan balance if the lender allows it.
Financing fees increases the amount borrowed and can result in additional interest. The calculator lets you explore both fee-handling approaches.
Home Equity and Combined Loan-to-Value Ratio
Home equity is the difference between your property’s estimated market value and the outstanding debt secured by it.
Estimated equity = Home value − Existing mortgage balance − New loan amount
For example, if your home is worth $300,000, your existing mortgage balance is $150,000, and you take out a $50,000 home equity loan, your estimated remaining equity is $100,000.
The combined loan-to-value ratio, or CLTV, compares the total secured borrowing against the home’s value.
CLTV = (Existing mortgage balance + New home equity loan) ÷ Home value × 100
In this example, the CLTV is approximately 66.7%. Lenders may have their own CLTV limits and underwriting requirements, so a calculator estimate does not establish eligibility.
Home Equity Loan vs. HELOC
A home equity loan and a home equity line of credit (HELOC) both allow eligible homeowners to borrow against property equity, but they work differently.
A home equity loan generally provides a lump sum and often has a fixed interest rate with regular scheduled payments. A HELOC provides access to a revolving credit limit, allowing borrowers to draw funds as needed within the lender’s terms. HELOCs commonly have variable interest rates and may have separate draw and repayment periods.
A fixed-payment loan may be useful when you know the amount you need to borrow and prefer predictable principal and interest payments. A HELOC may offer flexibility when borrowing needs are ongoing or uncertain. The features and costs of either product depend on the lender and agreement.
Frequently Asked Questions
How much would a $50,000 home equity loan cost per month?
The payment depends on the interest rate and repayment term. For example, a $50,000 loan at 7.5% annual interest over 15 years has an estimated monthly principal and interest payment of about $463.56. Fees, optional extra payments, and lender-specific terms may change the total cost.
Can I pay off a home equity loan early?
Some lenders allow borrowers to make additional principal payments or pay off the loan early. However, prepayment terms vary. Review your loan agreement to see whether any limits or prepayment penalties apply.
Does a home equity loan have a fixed monthly payment?
Many home equity loans have fixed interest rates and scheduled principal and interest payments. However, loan structures and terms vary by lender. Check the agreement to understand whether your payment can change and whether other charges apply.
Does the calculator include property taxes and homeowners insurance?
No. The calculator estimates the principal and interest payment on the home equity loan, along with optional fees and extra principal payments. Property taxes, homeowners insurance, mortgage payments, and other household costs are not included in the monthly payment estimate.
Does a lower interest rate always mean a lower total cost?
A lower interest rate generally reduces interest costs when the loan amount and repayment term are otherwise identical. However, fees, term length, prepayment conditions, and other loan features can also affect the total cost of borrowing.
Can I use this calculator for a HELOC?
This calculator is designed for a fixed-rate, fully amortizing home equity loan. A HELOC may have a variable rate, interest-only draw period, or a different repayment structure, so its payment may not be accurately represented here.
Important Considerations Before Borrowing
A home equity loan is secured by your home. If you cannot meet the repayment obligations, you could risk losing the property through foreclosure, subject to applicable law and the loan agreement.
Before borrowing, compare lender offers, review fees and repayment terms, and consider how the additional payment will fit into your budget. The calculator provides estimates to support your planning, but it is not a substitute for a lender’s official disclosures or financial advice.
Disclaimer: This calculator provides educational estimates only. Actual loan payments, rates, fees, eligibility, and terms are determined by the lender and may differ from the results shown.