Home Equity Loan Calculator 2026
Find out how much equity you can access, your monthly payment, and total interest for a fixed-rate home equity loan.
How Home Equity Loans Work
A home equity loan lets you borrow against the equity in your home — the difference between what it's worth and what you still owe. You receive a lump sum at closing, repay it at a fixed interest rate over a set term (typically 5–30 years), and your home serves as collateral.
Maximum Loan Amount Formula
Most lenders cap your combined loan-to-value (CLTV) at 85%:
Max equity loan = (Home value × 0.85) − Mortgage balance
Example: $400,000 home × 0.85 = $340,000 − $220,000 balance = $120,000 maximum.
Current Home Equity Loan Rates (2026)
Home equity loan rates typically range from 7.5% to 10% for borrowers with good credit. Rates are fixed, unlike a HELOC which varies with prime rate. Shop at least 3 lenders — rate differences of 0.5% on a $80,000 loan save ~$2,500 over 10 years.
Home Equity Loan vs HELOC
Use a home equity loan when you need a lump sum for a one-time expense (renovation, debt consolidation, tuition). Use a HELOC when you need ongoing access to funds over several years and prefer to only borrow what you need.