Home Equity Loan Calculator

Q: How much home equity can I borrow?

Most lenders cap total borrowing (first mortgage + equity loan) at 80%-85% of home value, some up to 90%. On a $400,000 home with a $250,000 mortgage balance, 85% CLTV allows 400,000 × 0.85 − 250,000 = $90,000 of borrowing.

Q: What is the difference between a home equity loan and a HELOC?

A home equity loan is a lump sum at a fixed rate with fixed payments — predictable and good for one-time expenses. A HELOC is a revolving credit line with a variable rate — flexible and good for ongoing or uncertain costs. Both are secured by your home.

Q: Is a home equity loan risky?

The key risk is that your home is collateral: missed payments can lead to foreclosure. Using equity for appreciating purposes (renovations, debt consolidation at lower rates) is generally sounder than funding consumption.

See how much you could borrow against your home at typical lender limits — and what the monthly payment would look like.

You could borrow up to about

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Total home equity

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Current LTV

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Payment if fully borrowed

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CLTV after borrowing

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The available-equity formula

Available to borrow = (Home value × CLTV limit) − Current mortgage balance

Worked example

Home value $400,000 · mortgage balance $250,000 · lender limit 85% CLTV

Available = 400,000 × 0.85 − 250,000 = $90,000

Borrowing all $90,000 at 8.5% over 10 years costs about $1,116/mo.

Home equity loan vs. HELOC vs. cash-out refinance

Option	Structure	Best for
Home equity loan	Lump sum, fixed rate, fixed payments	One-time known expenses
HELOC	Credit line, variable rate, draw as needed	Ongoing or uncertain costs
Cash-out refinance	New bigger first mortgage, cash at closing	When new rates beat your current rate

Remember that all three are secured by your house — the borrowing is cheap because your home is on the line. Compare against unsecured options with the personal loan calculator, and if the goal is erasing card debt, sanity-check the plan with the debt consolidation calculator first.

Frequently asked questions

How much home equity can I borrow?

Lenders typically cap combined borrowing at 80%–85% of home value (some 90%). $400,000 home − $250,000 owed at 85% = $90,000 available.

What's the difference between a home equity loan and a HELOC?

Loan = lump sum, fixed rate. HELOC = revolving line, variable rate. Both use your home as collateral.

Is a home equity loan risky?

Your home is collateral, so missed payments risk foreclosure. Best used for value-building purposes rather than consumption.

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Note: Actual borrowing limits depend on credit, income, and lender programs; rates shown are illustrative. Not financial advice. Last reviewed: July 2026.