Home Equity Loan Calculator
See the monthly payment and total interest on a lump-sum loan against your home equity.
A home equity loan gives you a lump sum borrowed against the equity in your home, repaid at a fixed rate over a set term of usually 5 to 30 years, with the same payment every month. On a $50,000 loan at 8.5% over 15 years you would pay about $492 a month. Enter your amount, rate, and term to see the full schedule.
These results are estimates for informational purposes only and are not financial, tax, or legal advice. Your actual figures from a lender or the IRS may differ. Consult a qualified professional before making decisions.
Estimated monthly payment
$492.37
Principal vs. interest paid per year
Amortization schedule
| Year | Principal | Interest | Balance |
|---|---|---|---|
| 1 | $1,725 | $4,184 | $48,275 |
| 2 | $1,877 | $4,031 | $46,398 |
| 3 | $2,043 | $3,865 | $44,355 |
| 4 | $2,224 | $3,685 | $42,132 |
| 5 | $2,420 | $3,488 | $39,712 |
| 6 | $2,634 | $3,274 | $37,078 |
| 7 | $2,867 | $3,042 | $34,211 |
| 8 | $3,120 | $2,788 | $31,091 |
| 9 | $3,396 | $2,512 | $27,695 |
| 10 | $3,696 | $2,212 | $23,999 |
| 11 | $4,023 | $1,886 | $19,976 |
| 12 | $4,378 | $1,530 | $15,597 |
| 13 | $4,765 | $1,143 | $10,832 |
| 14 | $5,187 | $722 | $5,645 |
| 15 | $5,645 | $263 | $0 |
About the Home Equity Loan Calculator
A home equity loan lets you borrow against the value you have already built in your home. The lender pays out the full amount up front, and you repay it in equal monthly installments at a fixed rate, so the payment never moves. Because the loan is secured by your house, the rate sits below what an unsecured personal loan charges, though above a first mortgage. This calculator returns the monthly payment, the total interest over the life of the loan, and the point where each payment starts going more toward principal than interest. The rate you qualify for and the length of the term do most of the work. A 10-year term costs far less interest than a 20-year term at the same rate, but the monthly bill is higher. Keep in mind that a home equity loan is a second lien on your property, and lenders usually limit your combined mortgage debt to about 85% of the home's value. Closing costs of 2% to 5% are common and sit outside the numbers above.
Frequently asked questions
What is the difference between a home equity loan and a HELOC?+
A home equity loan pays a single lump sum at a fixed rate with a set monthly payment. A HELOC is a revolving line of credit you draw from as needed, usually at a variable rate, so the payment changes with your balance and the index.
How much can I borrow against my home equity?+
Most lenders cap your combined loan-to-value at 80% to 85%. Multiply your home's value by 0.85, subtract what you still owe on your first mortgage, and that figure is roughly the most you can borrow.
Is the interest rate on a home equity loan fixed?+
Yes. A home equity loan carries a fixed rate for the entire term, so your monthly payment stays the same from the first bill to the last. That predictability is the main reason borrowers pick it over a variable-rate HELOC.
Can I deduct home equity loan interest on my taxes?+
Only when the money is used to buy, build, or substantially improve the home that secures the loan, and only if you itemize. Interest on a home equity loan spent on other things is not deductible under current IRS rules.
What happens if I cannot repay a home equity loan?+
The loan is secured by your home as a second lien. If you default, the lender can foreclose, though the first mortgage holder is paid first from any sale. Missing payments also damages your credit.