Home Equity Calculator: Equity, Borrowing Limit & Payment

Your estimate

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estimated maximum you could borrow

Current equity—
Equity share—
Current loan-to-value—

Loan you’re considering

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Total interest—
Combined LTV after the loan—

Estimates only. Figures are rounded and assume the inputs stay the same for the whole period.

Estimates only: Results are based on the numbers you enter and simplified assumptions. They are not a loan offer, rate quote or financial advice. Actual terms depend on the lender and your situation.

How home equity is calculated

Home equity is the part of your home you own outright: its current market value minus what you still owe on it. If your home is worth $450,000 and you owe $260,000, you have $190,000 in equity, or about 42%.

Lenders will not let you borrow all of it. They set a maximum combined loan-to-value ratio (CLTV). With an 85% limit on a $450,000 home, total mortgage debt can reach $382,500 — so after your $260,000 first mortgage, the most you could borrow is about $122,500.

Home equity loan vs. HELOC

Home equity loan compared with HELOC
Feature	Home equity loan	HELOC
How you get the money	Lump sum	Draw as needed
Rate	Usually fixed	Usually variable
Payment	Fixed	Varies; may be interest-only during draw period
Best for	One large, known cost	Ongoing or uncertain costs

The payment estimate in this calculator assumes a fixed-rate, fully amortizing home equity loan. A HELOC’s payment will change with its rate and whether you are in the draw or repayment period.

For a full comparison read HELOC vs. home equity loan, and visit the home equity hub.

Frequently asked questions

How much can I borrow against my home?

Lenders typically cap your combined loan-to-value ratio (CLTV) — all mortgages on the home divided by its appraised value — often around 80% to 85%, and sometimes higher. Your credit, income and debt-to-income ratio also affect the amount.

What is the difference between a home equity loan and a HELOC?

A home equity loan pays a lump sum with a fixed rate and fixed payments. A HELOC is a revolving line of credit, usually with a variable rate, that you draw on as needed during a draw period before a repayment period begins.

Is home equity loan interest tax-deductible?

Interest may be deductible if you itemize and use the funds to buy, build or substantially improve the home that secures the loan, subject to IRS limits. Interest on funds used for other purposes generally is not. Check IRS Publication 936 or a tax professional.

What are the risks of borrowing against home equity?

Your home is the collateral. If you cannot repay, you could lose it to foreclosure. Home values can also fall, leaving you owing more than the home is worth.

Learn more

HELOC vs. Home Equity Loan: Which Is Right for You? — HELOC vs. home equity loan compared: how each works, fixed vs. variable rates, draw and repayment periods, costs, tax rules and which fits your borrowing needs.