Home Equity Loan Calculator
Estimate your home equity, loan-to-value (LTV) and combined LTV, plus the fixed monthly payment on a home equity loan.
How to Use
- Enter your home's current value and your existing first mortgage balance — leave the mortgage balance at $0 if your home is paid off.
- Enter the home equity loan amount you're considering, the interest rate, and the loan term.
- The result shows your current equity, the loan-to-value (LTV) for this loan alone, the combined loan-to-value (CLTV) including your existing mortgage, and the estimated fixed monthly payment.
Formula
- Equity
- equity = home_value − mortgage_balance
- LTV
- ltv = loan_amount ÷ home_value × 100
- CLTV
- cltv = (mortgage_balance + loan_amount) ÷ home_value × 100
- Monthly payment
- payment = loan_amount × monthly_rate ÷ (1 − (1 + monthly_rate)^−months)
Worked Example
A $400,000 home with a $250,000 existing mortgage, requesting a $50,000 home equity loan at 8% over 10 years.
- Equity: $400,000 − $250,000 = $150,000
- LTV for this loan alone: $50,000 ÷ $400,000 × 100 = 12.5%
- CLTV after this loan: ($250,000 + $50,000) ÷ $400,000 × 100 = 75%
- Monthly rate: 8 ÷ 100 ÷ 12 ≈ 0.006667
- Monthly payment: $50,000 × 0.006667 ÷ (1 − 1.006667⁻¹²⁰) ≈ $606.64
Result: Current equity in your home: $150,000.00 / Loan-to-value (LTV) for this loan alone: 12.5% / Combined loan-to-value (CLTV) after this loan: 75% / Estimated fixed monthly payment: $606.64
About This Tool
What this tool does
This calculator estimates your home equity, the loan-to-value ratio for a requested home equity loan on its own, the combined loan-to-value including any existing first mortgage, and the fixed monthly payment that loan amount, rate and term would produce.
When to use it
Use it to see roughly where you stand before talking to a lender about a home equity loan, or to compare how different loan amounts change your LTV/CLTV and monthly payment.
What the result means
LTV and CLTV are figures lenders commonly use to judge how much of a home's value is financed — a lower CLTV generally means more of the home is unencumbered equity. Both are shown here purely for information; this tool does not apply any maximum CLTV cutoff of its own.
Assumptions & limitations
This is an estimate, not a lending decision, pre-qualification, or pre-approval of any kind, and does not imply any lender would actually approve this loan amount. Real lenders each set their own maximum LTV/CLTV, which varies by lender, loan program, your credit profile, and market conditions, and is not fixed by any rule this calculator applies — a CLTV that looks high here is not itself a rejection, and a CLTV that looks low is not itself an approval. Whether a CLTV is even at or below 100% is not checked or required by this tool, since a homeowner can be genuinely underwater and still want to see these figures.