Home Equity Loan Calculator

Home equity loans use the standard fully amortizing installment formula: Payment = P × r × (1+r)^n ÷ ((1+r)^n − 1), where P is the amount borrowed, r is the monthly rate (annual rate ÷ 12), and n is the term in months. On $50,000 at 8.5% over 15 years, that works out to about $492.37 per month — every payment is identical, and the loan is fully paid off at month 180.

A home equity loan pays you one lump sum at a fixed rate with one fixed payment — best when you know exactly how much you need. A HELOC is a revolving variable-rate line: during a draw period (commonly 10 years) you borrow and repay flexibly, often interest-only, then the balance amortizes in a repayment phase. The loan gives certainty; the HELOC gives flexibility — usually at the cost of rate risk.

At 8.5% over 15 years, about $38,627 in total interest ($492.37 × 180 = $88,627 repaid). Term length matters more than small rate differences: 10 years costs about $24,391 in interest at $619.93/month, while 20 years drops the payment to $433.91 but raises interest to about $54,139. Use the calculator to test your exact quote.

Typically yes, slightly. Home equity loans sit in second lien position, so lenders charge a modest premium over comparable first-mortgage rates. The trade-off is the fixed rate: HELOC rates float monthly with the prime rate plus a margin, so a HELOC that looks cheaper today can get more expensive quickly. Compare real quotes for both using the rate table above.

Most lenders cap combined loan-to-value — your first mortgage balance plus the equity loan — at 80-90% of the home appraised value. On a $400,000 home with a $250,000 mortgage, an 85% cap leaves about $90,000 of available equity ($400,000 × 0.85 − $250,000). Lenders also weigh credit score and debt-to-income, so the actual limit can be lower.