Calculate home equity loan payments and see how much equity you can borrow against. Uses the standard 85% LTV lender limit with fixed monthly payment breakdown.
Fixed rate — monthly payment & available equity
A home equity loan calculator helps you see exactly how much you can borrow against your home and what the fixed monthly payments will be. Most US lenders cap borrowing at 85% of your home's value minus what you still owe on your first mortgage. On a $400,000 home with a $250,000 mortgage balance, the math works out to ($400,000 × 0.85) − $250,000 = $90,000 in maximum borrowable equity. The loan comes with a fixed interest rate — typically 7%–10% in 2025 — and a fixed term, so the payment never changes and you know exactly when you'll be done.
The key difference between a home equity loan and a HELOC is predictability. Home equity loans give you a lump sum at a fixed rate and fixed payment — ideal for a single large expense like a kitchen renovation or debt consolidation. A HELOC works more like a credit card: a revolving line you draw from during the draw period (usually 10 years) at a variable rate. If you need a defined amount for a specific project, a home equity loan's fixed structure makes budgeting easier. Interest on home equity loans may be tax-deductible when funds are used for home improvements, per IRS rules — consult a tax professional to confirm your situation.
Home equity loans carry fixed rates; HELOCs are typically variable (prime rate + margin). If rates rise, HELOC payments rise. A fixed home equity loan shields you from rate increases and makes budgeting straightforward.
Most lenders won't let combined loan-to-value exceed 85%. Some credit unions and lenders go to 90%–95%, but rates are higher. Knowing your available equity before shopping lets you negotiate from a position of knowledge.
IRS rules allow interest deductions on home equity debt used to "buy, build, or substantially improve" your home. Using equity for a vacation or car purchase does not qualify. Deductions are capped at $750,000 of total mortgage debt.
Best uses: home improvements that add value, debt consolidation at a lower rate than credit cards, or large one-time expenses. Avoid using home equity for depreciating purchases — you're putting your home at risk as collateral.