Home Equity Loan Calculator

Calculate home equity loan payments and how much equity you can borrow against your home.

Loan Details

5%36%
1 yr10 yrs

Monthly EMI

₹11,122

Total Amount Payable

₹6,67,333

Principal

₹5,00,000

Total Interest

₹1,67,333

Home Equity Loan Calculator Formula & How It Works

Available Equity = Home Value × 0.85 − Existing Mortgage Balance
  • Most lenders allow combined LTV of up to 85% (some up to 90%)
  • Home equity loan is a fixed-rate second mortgage
  • Monthly payment uses the standard amortization formula
  • Interest may be tax-deductible if used for home improvement

Home equity loans allow you to borrow against your home's equity in a lump sum at a fixed rate. Lenders typically allow combined loan-to-value (CLTV) up to 80–85%. The payment uses the same amortization formula as a mortgage: M = P[r(1+r)ⁿ]/[(1+r)ⁿ−1].

Home Equity Loan Calculator FAQs

How much can I borrow with a home equity loan?

Typically up to 80–85% of your home's appraised value minus your existing mortgage balance. On a $400,000 home with a $200,000 mortgage: 85% × $400,000 = $340,000 − $200,000 = $140,000 available.

Home equity loan vs HELOC — which is better?

A home equity loan gives you a lump sum at a fixed rate — predictable payments, ideal for one-time expenses. A HELOC is a revolving line of credit at a variable rate — flexible, good for ongoing projects. Use the HELOC Calculator to compare both.

Is home equity loan interest tax-deductible?

Interest is deductible only if the loan is used to buy, build, or substantially improve the home securing the loan. Personal expenses (debt consolidation, vacations) are not deductible. Consult a tax professional.

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