Home Equity Loan Calculator

Calculate home equity loan payment from equity, amount, rate, and term.

By Konstantin Iakovlev · Updated April 2026 · Source: CFPB — Owning a Home

$
$
%
yrs

Monthly Payment

$463.51

Total Interest

$33,431.11

Loan Summary

Monthly Payment$463.51
Total Paid$83,431.11
Total Interest$33,431.11

Use the Home Equity Loan Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

How It Works

Borrowing against home equity for renovations, debt consolidation, or another large expense means committing to a fixed monthly payment, and seeing that number up front tells you whether the loan fits your budget. With interest rates and home values both in flux through 2026, a clear payment estimate is the difference between a plan and a guess.

The monthly payment (M) comes from the standard amortization formula: M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1]. Here P is the principal you borrow, i is the monthly interest rate (the annual rate divided by 12), and n is the total number of payments (the term in years times 12). The math assumes the rate stays fixed for the life of the loan.

Rate sensitivity surprises a lot of borrowers: across a long term, even a fraction of a percentage point reshapes what you pay overall. Borrowing past what you actually need is the other trap, since the surplus does nothing but add to the monthly strain. The safest approach is to size the loan to a payment you can carry comfortably.

Example: Home Renovation Project

  1. 1 Imagine you want to take out a $50,000 home equity loan for a kitchen renovation. Your bank offers you a 7.25% annual interest rate over a 15-year term. You have sufficient home equity to secure this amount.
  2. 2 Inputting these values into the calculator: Loan Amount = $50,000, Annual Interest Rate = 7.25%, Loan Term = 15 years (180 months). The calculator will then apply the amortization formula.
  3. 3 The calculated monthly payment for this home equity loan would be approximately $456.12. This payment covers both the principal and interest over the 15-year period.
  4. 4 Knowing this monthly payment allows you to assess if it fits within your budget. You can compare this to other financing options, such as a cash-out refinance or a personal loan, to ensure you're making the most financially sound decision for your home renovation in 2026.

Source: CFPB — Owning a Home · Last updated: April 2026

Frequently Asked Questions

How much can I borrow with a home equity loan?
Most lenders allow you to borrow up to 80-85% of your home's value minus your remaining mortgage balance. If your home is worth $400,000 and you owe $250,000, you could borrow up to $70,000-$90,000 (at 80-85% LTV).
What is the interest rate on a home equity loan?
Home equity loan rates are typically 1-2% higher than first mortgage rates. As of 2026, rates range from 7-10% depending on your credit score, LTV ratio, and loan amount. Rates are fixed for the life of the loan, providing predictable monthly payments.
Is home equity loan interest tax deductible?
Yes, if the funds are used to buy, build, or substantially improve the home that secures the loan. The interest is deductible on combined mortgage debt up to $750,000. Interest on home equity loans used for other purposes (like paying off credit cards) is not deductible.

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