{
  "id": "home-equity-loan",
  "version": "0da205243fb2",
  "status": "published",
  "name": "Home Equity Loan Calculator",
  "question": "What home equity loan can I get?",
  "summary": "Computes the most a lender’s combined loan-to-value limit lets you borrow against your home, and the monthly payment and interest of a fixed-rate home equity loan.",
  "category": "finance",
  "subcategory": "loans",
  "url": "https://www.acalculator.org/finance/home-equity-loan-calculator",
  "markdown": "https://www.acalculator.org/finance/home-equity-loan-calculator.md",
  "kind": "schedule",
  "method": "most you can borrow = home value × CLTV limit − mortgage balance; payment = L × r ÷ (1 − (1 + r)^−n), with L the loan, r the APR ÷ 12, and n the months.",
  "assumptions": [
    "The lender’s limit applies to all loans on the home together (combined loan-to-value).",
    "The loan has a fixed rate and is repaid in equal monthly payments, the first one month after the start date.",
    "Closing costs and fees are not included.",
    "Values are not rounded to the cent between months; only the display is rounded."
  ],
  "inputs": {
    "$schema": "https://json-schema.org/draft/2020-12/schema",
    "type": "object",
    "properties": {
      "value": {
        "title": "Home value",
        "description": "What your home is worth today, for example from an appraisal.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 1000,
        "maximum": 1000000000
      },
      "owed": {
        "title": "Mortgage balance",
        "description": "What you still owe on your mortgage and any other loans secured by the home.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000000
      },
      "cltv": {
        "title": "Lender’s limit (CLTV)",
        "description": "The highest combined loan-to-value the lender allows: all loans on the home, the new one included, as a percent of its value.",
        "type": "number",
        "x-unit": "percent",
        "exclusiveMinimum": 0,
        "maximum": 100
      },
      "amount": {
        "title": "Amount you want to borrow",
        "description": "The loan you want. Leave it empty to use the most the limit allows.",
        "type": "number",
        "x-unit": "USD",
        "exclusiveMinimum": 0,
        "maximum": 1000000000
      },
      "rate": {
        "title": "Interest rate (APR)",
        "description": "The fixed yearly rate of the loan. The monthly rate is this divided by 12.",
        "type": "number",
        "x-unit": "percent",
        "minimum": 0,
        "maximum": 30
      },
      "years": {
        "title": "Loan term (years)",
        "description": "The number of years to repay the loan, for example 10, 15, or 20.",
        "type": "integer",
        "minimum": 1,
        "maximum": 30
      },
      "start": {
        "title": "Loan start date",
        "description": "The day the loan starts. The first payment is one month later.",
        "type": "string",
        "format": "date"
      }
    }
  },
  "outputs": {
    "payment": {
      "label": "Monthly payment",
      "description": "The level monthly payment on the home equity loan.",
      "format": "money"
    },
    "max": {
      "label": "Most you can borrow",
      "description": "The home value times the lender’s limit, minus the mortgage balance.",
      "format": "money"
    },
    "loan": {
      "label": "Loan amount",
      "description": "The amount borrowed: your amount, or the most you can borrow.",
      "format": "money"
    },
    "over": {
      "label": "Over the limit by",
      "description": "How much the amount you want is above the most the limit allows.",
      "format": "money"
    },
    "combined": {
      "label": "Combined loan-to-value",
      "description": "The mortgage balance plus the new loan, as a percent of the home value.",
      "format": "percent"
    },
    "equity": {
      "label": "Equity today",
      "description": "The home value minus the mortgage balance.",
      "format": "money"
    },
    "left": {
      "label": "Equity left after the loan",
      "description": "The equity today minus the new loan.",
      "format": "money"
    },
    "interest": {
      "label": "Total interest",
      "description": "All the interest paid over the term.",
      "format": "money"
    },
    "paid": {
      "label": "Total of payments",
      "description": "The loan plus all the interest.",
      "format": "money"
    },
    "payoff": {
      "label": "Paid off in",
      "description": "The month of the last payment, when a start date is given.",
      "format": "month-year"
    }
  },
  "defaultAnswer": {
    "inputs": {
      "value": 450000,
      "owed": 250000,
      "cltv": 80,
      "amount": 50000,
      "rate": 8.5,
      "years": 15,
      "start": "2026-09-29"
    },
    "outputs": {
      "payment": 492.3697789627966,
      "max": 110000,
      "loan": 50000,
      "combined": 66.66666666666666,
      "equity": 200000,
      "left": 150000,
      "interest": 38626.56021330342,
      "paid": 88626.56021330343,
      "payoff": "2041-09-29"
    },
    "text": "With $450,000.00 of home value and $250,000.00 owed, you can borrow up to $110,000.00; a $50,000.00 loan at 8.5% over 15 years costs $492.37 a month."
  },
  "examples": [
    {
      "given": {
        "value": 450000,
        "owed": 250000,
        "cltv": 80,
        "amount": 50000,
        "rate": 8.5,
        "years": 15
      },
      "expect": {
        "max": 110000,
        "payment": 492.36977896279666,
        "combined": 66.66666666666666,
        "interest": 38626.560213303404
      },
      "source": "hand calculation in content.mdx; Python 3 in docs/progress/WP-31/python/home_equity.py"
    },
    {
      "given": {
        "value": 400000,
        "owed": 200000,
        "cltv": 85,
        "rate": 7.75,
        "years": 20
      },
      "expect": {
        "max": 140000,
        "loan": 140000,
        "payment": 1149.3279898667838,
        "combined": 85,
        "interest": 135838.7175680242
      },
      "source": "hand calculation in content.mdx: 400,000 × 0.85 − 200,000"
    },
    {
      "given": {
        "value": 300000,
        "owed": 240000,
        "cltv": 80,
        "amount": 20000,
        "rate": 9,
        "years": 10
      },
      "expect": {
        "max": 0,
        "over": 20000,
        "combined": 86.66666666666667,
        "payment": 253.35154750049773
      },
      "source": "hand calculation in content.mdx: 300,000 × 0.8 − 240,000 = 0"
    }
  ],
  "sources": [
    "Consumer Financial Protection Bureau, What is a home equity loan? https://www.consumerfinance.gov/ask-cfpb/what-is-a-home-equity-loan-en-106/",
    "Federal Trade Commission, Home Equity Loans and Home Equity Lines of Credit. https://consumer.ftc.gov/articles/home-equity-loans-and-home-equity-lines-credit",
    "Consumer Financial Protection Bureau, What you should know about home equity lines of credit (brochure). https://files.consumerfinance.gov/f/documents/cfpb_heloc-brochure_print.pdf",
    "Amortized loan payment (annuity) formula: S. A. Broverman, Mathematics of Investment and Credit, chapter 3."
  ],
  "related": [
    "mortgage",
    "loan",
    "amortization",
    "mortgage-recast"
  ],
  "changelog": []
}