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Home Equity Loan Calculator

If you’re pondering taking out a second mortgage such as a home equity loan for cash needs, my home equity loan calculator below can be useful.

Typically, home equity loan rates are quite a higher than first mortgage rates, but unlike HELOCs, they are usually fixed.

This means the interest rate won’t increase (nor will it decrease), providing some peace of mind long term.

Another key factor is the loan term associated with the home equity loan.

Simply put, the shorter the loan term, the higher the monthly payment. But also the less interest you pay.

If the loan term is longer, you’ll pay less each month but more in interest over the life of the loan.

Home Equity Loan Calculator (and Cash-Out Refinance Comparison!)

A home equity loan gives you a lump sum, typically with a fixed interest rate, repaid in equal monthly installments. Enter your loan details below to instantly see your payment and total cost.

Results update automatically as you type — no submit button needed.

Loan details

$
%
$
Used only to calculate your loan-to-value ratio.
$
Enter 0 if your home is paid off.
%
Used to calculate your blended rate.

Cash-out refinance comparison — optional

Enter a proposed cash-out refinance scenario to compare total cost and monthly payment against the home equity loan above.

$
$
Should match the home equity loan amount above for an apples-to-apples comparison.
%

Results

Monthly payment
—
Principal + interest
Total interest paid
—
Over full loan term
Total loan cost
—
Principal + interest
Combined LTV ratio
—
Enter home value to calculate
Blended rate
—
Enter existing mortgage details

Loan breakdown

Payment summary
Loan amount—
Interest rate—
Loan term—
Total payments—
Monthly payment—
Cost summary
Principal—
Total interest—
Total cost—
Combined LTV—
Blended rate—
Combined loan-to-value (CLTV)
0% — 100%
Home equity loan vs. HELOC: A home equity loan gives you a lump sum upfront at a fixed interest rate, with predictable equal monthly payments for the entire loan term. Unlike a HELOC, there is no draw period. Repayment begins immediately. Most lenders limit a combined loan-to-value (CLTV) ratio to 90% or less, meaning your total mortgage debt should not exceed 90% of your property’s appraised value.
Why a home equity loan may beat a cash-out refinance: If your existing mortgage carries a low interest rate, a cash-out refinance replaces that loan entirely with a new one at today’s much higher rates. This means your entire mortgage balance gets repriced higher. A home equity loan leaves your first mortgage and low rate intact. By borrowing only what you need as a second loan, your blended rate across both loans may be significantly lower than refinancing at current rates. Use the optional fields above to enter your existing mortgage balance and rate to see your blended rate instantly.

Cash-out refinance vs. home equity loan

Home equity loan ✓ Lower cost
Loan amount—
Interest rate—
Term—
Monthly payment (HEL only)—
Combined monthly payment—
Blended rate—
Total interest (HEL only)—
Total interest (both loans)—
Cash-out refinance ✓ Lower cost
New loan amount—
Interest rate—
Term—
Monthly payment—
Combined monthly payment—
Effective rate on cash-out—
Total interest—
Total interest (both loans)—
Disclaimer: This calculator is for informational and educational purposes only and does not constitute financial, legal, or tax advice. Results are estimates based on a fixed interest rate and standard amortization and may not reflect actual loan terms, fees, or lender requirements. Please consult a licensed mortgage or financial professional before making any financial decisions.

Be sure to compare a home equity loan to a HELOC and also a cash-out refinance, where you tap equity and end up with just a single loan.

The cash-out refinance can make sense if mortgage rates have fallen since you originally took out your home loan.

As noted, first mortgage rates are generally cheaper than second mortgages, so if rates have gone down, this might be the cheapest option.

[Searching for a home loan? See your options with dozens of lenders fast.]

Conversely, if rates are high, keeping an existing low-rate loan can make a lot of sense (and save you money).

Home Equity Loan Frequently Asked Questions

What is a home equity loan?

A loan that allows you to borrow from your home, using your available home equity as collateral, typically acting as a second mortgage behind an existing first mortgage.

How are home equity loan rates?

They’re generally 2-3% or more above 30-year fixed mortgage rates. So if a 30-year fixed is priced at 6% today, a home equity loan might be offered at 8-9% or higher. This is just a ballpark. 

Individual loan characteristics will factor in and lender rates may vary.

How much can I borrow?

Typically 80-90% of the appraised value to ensure there is a buffer. This means if you already have an outstanding first mortgage for 75% of your home’s value, you’ll only be able to borrow another 5-15%.

What’s the difference between a home equity loan and HELOC?

Several differences. A home equity loan gives you one lump sum of cash at closing, typically comes with a fixed interest rate, and has an immediate repayment period.

A HELOC is tied to prime (variable rate), offers a draw period and repayment period, and acts more like a credit card in that you can borrow only what you need. You can also make interest-only payments.

Read more: Three key differences between HELOCs and home equity loans.

Why take out a home equity loan instead of a cash-out refinance?

Many homeowners have ultra-low first mortgage rates thanks to the record low rates available in 2020-2021. To avoid giving up this rate, they can take out a second mortgage in the form of a home equity loan and keep their existing loan while borrowing for less.

Colin Robertson
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