Loan versus credit line
A fixed home equity loan uses a lump sum and repayment schedule. A HELOC supports draws during a draw period and may have a variable rate; compare it with the separate HELOC calculator.
Loans
Home Equity Loan Calculator
Estimate a fixed home equity loan or second mortgage payment. Calculate home equity, a borrowing limit from your entered CLTV and an amortization schedule.
Home equity loan monthly payment
$606.64
Estimated home equity
$200,000.00
Borrowing limit at entered CLTV
$120,000.00
Combined LTV after new loan
62.5%
Amount above modeled borrowing limit
$0.00
Total interest
$22,796.56
Result comparison
Home equity loan monthly payment: $606.64Home equity loan monthly payment · $606.64
Estimated home equity: $200,000.00Estimated home equity · $200,000.00
Borrowing limit at entered CLTV: $120,000.00Borrowing limit at entered CLTV · $120,000.00
Amount above modeled borrowing limit: $0.00Amount above modeled borrowing limit · $0.00
Total interest: $22,796.56Total interest · $22,796.56
Home equity loan monthly paymentTotal interest
Hover, tap or focus a column to see its exact value.
Home equity loan repayment
Detailed values use the same assumptions as the summary above.
| Month | Payment | Interest | Principal | Balance |
|---|---|---|---|---|
| 1 | $606.64 | $333.33 | $273.30 | $49,726.70 |
| 2 | $606.64 | $331.51 | $275.13 | $49,451.57 |
| 3 | $606.64 | $329.68 | $276.96 | $49,174.61 |
| 4 | $606.64 | $327.83 | $278.81 | $48,895.80 |
| 5 | $606.64 | $325.97 | $280.67 | $48,615.13 |
| 6 | $606.64 | $324.10 | $282.54 | $48,332.60 |
| 7 | $606.64 | $322.22 | $284.42 | $48,048.18 |
| 8 | $606.64 | $320.32 | $286.32 | $47,761.86 |
| 9 | $606.64 | $318.41 | $288.23 | $47,473.63 |
| 10 | $606.64 | $316.49 | $290.15 | $47,183.49 |
| 11 | $606.64 | $314.56 | $292.08 | $46,891.41 |
| 12 | $606.64 | $312.61 | $294.03 | $46,597.38 |
Equity and a borrowing-limit estimate do not establish eligibility. Fees, appraisal changes, variable rates and approval requirements are outside the model.
Calculation method
Formula and method
The new payment is P × r / (1−(1+r)^−n), where r is the monthly rate and n is the number of months. At zero rate, payment equals P/n.
Detailed guide
Estimate a second mortgage payment and equity
Home equity is estimated property value minus the balances of loans secured by that property. A home equity loan adds a separate loan with its own repayment schedule. Enter the amount and fixed rate you want to compare.
The borrowing estimate uses an entered combined loan-to-value limit. A 400,000 home with 200,000 of secured debt and an 80% limit has a modeled additional borrowing limit of 120,000. That is a scenario calculation rather than an approval.
Formula and method
Equity = home value − secured debt; borrowing limit = max(0, home value × CLTV − secured debt)
The new payment is P × r / (1−(1+r)^−n), where r is the monthly rate and n is the number of months. At zero rate, payment equals P/n.
Combined LTV equals existing secured debt plus the requested new loan divided by home value. The result also shows the amount by which a request exceeds the entered borrowing limit.
Using the results
Negative equity
If secured debt exceeds home value, equity is negative and the borrowing estimate is zero. The requested loan payment can still be modeled as a hypothetical scenario.
Frequently asked questions
Is a home equity loan a second mortgage?
It commonly creates another loan secured by the home. Enter all existing secured balances to estimate combined LTV.
Does this include closing costs?
No. Enter the total principal you plan to finance; fees paid separately must be considered when comparing offers.
Why is my request above the estimated limit?
The requested amount plus existing secured debt exceeds the CLTV assumption you entered. Different lender assumptions may produce a different estimate.
Data sources
These sources explain the concepts used in the calculation. Check the applicable contract or issuer documents for your actual parameters.
Updated: October 1, 2026
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