# What home equity loan can I get?

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.

- Page: https://www.acalculator.org/finance/home-equity-loan-calculator
- JSON spec: https://www.acalculator.org/finance/home-equity-loan-calculator.json
- Version: 0da205243fb2

## Default answer

Example with the default inputs (Home value $450,000.00, Mortgage balance $250,000.00, Lender’s limit (CLTV) 80%, Amount you want to borrow $50,000.00, Interest rate (APR) 8.5%, Loan term (years) 15, Loan start date September 29, 2026) on the example date Tuesday, September 29, 2026: 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.

## Inputs

| Key | Label | Description |
| --- | --- | --- |
| value | Home value | What your home is worth today, for example from an appraisal. |
| owed | Mortgage balance | What you still owe on your mortgage and any other loans secured by the home. |
| cltv | Lender’s limit (CLTV) | The highest combined loan-to-value the lender allows: all loans on the home, the new one included, as a percent of its value. |
| amount | Amount you want to borrow | The loan you want. Leave it empty to use the most the limit allows. |
| rate | Interest rate (APR) | The fixed yearly rate of the loan. The monthly rate is this divided by 12. |
| years | Loan term (years) | The number of years to repay the loan, for example 10, 15, or 20. |
| start | Loan start date | The day the loan starts. The first payment is one month later. |

## Outputs

| Key | Label | Description |
| --- | --- | --- |
| payment | Monthly payment | The level monthly payment on the home equity loan. |
| max | Most you can borrow | The home value times the lender’s limit, minus the mortgage balance. |
| loan | Loan amount | The amount borrowed: your amount, or the most you can borrow. |
| over | Over the limit by | How much the amount you want is above the most the limit allows. |
| combined | Combined loan-to-value | The mortgage balance plus the new loan, as a percent of the home value. |
| equity | Equity today | The home value minus the mortgage balance. |
| left | Equity left after the loan | The equity today minus the new loan. |
| interest | Total interest | All the interest paid over the term. |
| paid | Total of payments | The loan plus all the interest. |
| payoff | Paid off in | The month of the last payment, when a start date is given. |

## 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.

## Worked examples

1. value = $450,000.00, owed = $250,000.00, cltv = 80%, amount = $50,000.00, rate = 8.5%, years = 15 gives max = $110,000.00, payment = $492.37, combined = 66.666667%, interest = $38,626.56. Source: hand calculation in content.mdx; Python 3 in docs/progress/WP-31/python/home_equity.py.
2. value = $400,000.00, owed = $200,000.00, cltv = 85%, rate = 7.75%, years = 20 gives max = $140,000.00, loan = $140,000.00, payment = $1,149.33, combined = 85%, interest = $135,838.72. Source: hand calculation in content.mdx: 400,000 × 0.85 − 200,000.
3. value = $300,000.00, owed = $240,000.00, cltv = 80%, amount = $20,000.00, rate = 9%, years = 10 gives max = $0.00, over = $20,000.00, combined = 86.666667%, payment = $253.35. Source: hand calculation in content.mdx: 300,000 × 0.8 − 240,000 = 0.

## FAQ

### How much can I borrow with a home equity loan?

Lenders cap the total of all loans on your home at a share of its value, called the combined loan-to-value (CLTV) limit. The most you can borrow is the home value × that limit, minus what you owe. A $450,000 home with $250,000 owed and an 80% limit leaves 450,000 × 0.8 − 250,000 = $110,000.

### What is combined loan-to-value (CLTV)?

It is everything you owe on the home, the new loan included, divided by the home's value. Owing $250,000 on a $450,000 home and borrowing $50,000 more gives a CLTV of 300,000 ÷ 450,000 = 66.7%. Lenders set their own limits; ask yours for its number and enter it.

### How is a home equity loan different from a HELOC?

A home equity loan pays you a lump sum and usually has a fixed rate and equal monthly payments, which is what this page works out. A home equity line of credit (HELOC) is a revolving line, like a credit card, with a rate that usually changes, and you pay only on what you draw.

### What is my equity?

Your equity is the home's value minus what you owe on it. With a $450,000 home and a $250,000 mortgage it is $200,000. A lender will not usually let you borrow all of it, because the limit keeps a cushion of equity in the home.

### What are the risks?

The loan is secured by your home, so if you cannot repay it you could lose the home. It also adds a second monthly payment. Borrow only what you need, and compare the APR and closing costs of several lenders.

### Why does the page say I am over the limit?

When the amount you want is more than the most the limit allows, the page still works out the payment but shows how far over the limit it is. A lender with that limit would offer less, or nothing.

## 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.