Finance

Home Equity Loan Calculator

Built by Kevin Glover · @gloverbuilds · Verified formula

Calculate home equity loan payments and available equity. HELOC vs lump sum comparison. Free calculator.

📅 Updated April 2026 ✅ Formula verified 📖 4 min read 🆓 Free · No sign-up

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Home Equity Loans vs HELOCs

Home equity loan: Fixed rate, lump sum, predictable payments. Best for one-time expenses (renovation, debt consolidation). HELOC: Variable rate, revolving credit line, draw as needed. Best for ongoing expenses or uncertain costs. Both use your home as collateral — defaulting means foreclosure.

How Much Can You Borrow

Most lenders allow borrowing up to 80-85% of home value minus mortgage balance. With a $450K home and $280K mortgage: available equity is $450K x 0.85 - $280K = $102,500 maximum. Current rates: 8-11% for home equity loans, slightly lower for HELOCs initially.

⚡ CalcWolf Insight

Since 2018, home equity loan interest is tax-deductible only when funds are used for home improvements. Using equity for debt consolidation is no longer deductible — a change that affects the true cost by 22-37%.

Frequently asked questions

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

Home equity loan: fixed rate, lump sum, fixed payments (like a second mortgage). HELOC: variable rate, credit line you draw from as needed, interest-only payments during draw period. Choose based on whether you need all the money at once (loan) or over time (HELOC).

How much equity can I borrow against?▾

Most lenders cap at 80-85% combined loan-to-value. Subtract your mortgage balance from 85% of your home value to find your maximum. A $400K home with $250K mortgage: up to $90,000 available.

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Kevin Glover · @gloverbuilds

Founder, CalcWolf · GLVTS · Blickr

All formulas sourced from primary references — IRS publications, peer-reviewed research, and official standards. Results are tested against independent reference calculators before publishing. Rates and brackets updated when official sources change. Editorial policy →