Home Equity Calculator

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Total Principal Paid $0
Total Interest Paid $0
COMPARE LOAN RATES Show amortization schedule
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Calculate the impact of extra payments using any combination of the inputs below. To see your new estimated payoff date, click ‘Show amortization schedule’ link above.

to your monthly payment
as an extra yearly payment occurring every:
as a one-time payment in:

How to Use a Home Equity Loan Calculator?

Calculating your home equity loan is fairly simple with the help of free online calculators. A loan calculator will help you determine how much money you will be able to borrow. Most home equity calculators will ask you for your home address to estimate the property value and mortgage balance by using market data for the specific location. In case some of the automatic estimates are not correct, you can easily edit them to insert correct information. Your estimated home value and mortgage balance are needed to calculate your LTV ratio.

LTV stands for loan-to-value ratio and you get it by dividing the amount you owe on your mortgage by the market value of your home. Finally, you’ll need to insert your exact credit score to find out what kind of rates you can qualify for. Once you’ve got all the info in the calculator, click on the green button to get results and see what interest rates apply to your situation.

Here’s an example: if your home is worth $400,000 and you still owe $200,000 as your mortgage, your loan to value ratio is 50%. We get this ratio by dividing $200,000 by $400,000, which gives us 0.50. Thus, your loan to value ratio is 50% and your home equity is also 50% because you’ve paid off half of your mortgage debt. How much money you’ll be able to borrow with these numbers depends on the lender you choose. However, some lenders allow an LTV of 80%, meaning they would allow you to borrow an additional 30%, bringing the amount you owe to $320,000, which is 80% of the original home value of $400,000.

Applying for a Home Equity Loan

As you can see, using a home equity loan calculator is quite easy. However, the results will depend on your credit score and LTV ratio. It’s best to try out multiple different calculators provided by different lenders. That way, you might find that you qualify for better rates at a different lender, which will allow you to save some money in the long run.

You may also look into HELOC calculators as a good alternative, depending on what kind of loan you need. A HELOC is much different than a home equity loan – it allows you to borrow money against your home equity through a system similar to a credit card. With a HELOC, you can draw different amounts of money as you come to need them during a 10 year withdrawal period.

Home equity loans, on the other hand, provide a one time lump sum payment which can come in handy if you need to cover big expenses such as emergencies or home renovations. Make sure to look into both options before settling for one. There are HELOC calculators you can use as well, which are more suitable for determining how much money you can borrow over an extended period of time. The requirements for this calculator will be similar, if not identical to the home equity loan calculators. Don’t hesitate to consult with financial advisors of the lenders themselves when choosing the best option for your needs.

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