How much can I borrow with a home equity loan?

Many lenders let you borrow until your combined loan-to-value ratio is around 80% to 85%. This calculator estimates that limit using your home value and balances.

What is a good CLTV for a home equity loan?

A CLTV at or under 80% is often seen as conservative. Higher CLTVs may still be possible but can come with tighter approval and higher rates.

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

A home equity loan is a fixed lump sum with a fixed term and payment. A HELOC is a revolving line of credit secured by your home with a variable balance over time.

Home equity

Home Equity Loan Calculator

See how much equity you may be able to borrow, estimate your monthly payment, and check your combined loan-to-value (CLTV) ratio. Enter your home value, current mortgage balance, and a target loan amount to get started.

Your details

Home value Estimated market value

Current mortgage balance Remaining principal

Desired home equity loan amount Lump sum you want to borrow

Interest rate (APR) Annual percentage rate

Loan term (years) Typical range 5–30 years

This calculator is for estimates only and does not approve you for credit. Actual limits and rates depend on your lender, credit profile, and local rules.

Your estimates

Estimated monthly payment

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Combined loan-to-value (CLTV)

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Current equity —

Equity remaining after new loan —

Total interest over the term —

Many lenders aim for a maximum CLTV around 80%–85%. This tool shows where your scenario sits so you can adjust your loan amount or term.

How to use the home equity loan calculator

Enter your home value. Use a recent appraisal, online estimate, or a comparable sale in your area.
Add your current mortgage balance. This should be the remaining principal on your first mortgage.
Choose a target home equity loan amount. Start with the amount you think you need for renovations, debt consolidation, or other goals.
Set the interest rate and term. Try a few rates and loan terms to see how they change your monthly payment and total interest.
Review the CLTV and equity remaining. If the CLTV is higher than you are comfortable with, reduce the loan amount or consider a longer term.

The calculator updates instantly as you type, so you can test different “what if” scenarios before talking with a lender.

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

Combined loan-to-value, or CLTV, compares the total of all loans secured by your home to the home’s value. It includes your main mortgage plus any home equity loans or lines of credit.

CLTV formula:

CLTV (%) = (Total secured loans ÷ Home value) × 100

Total secured loans: First mortgage balance + proposed home equity loan.
Home value: Estimated current market value of your property.

Many lenders set a maximum CLTV around 80% to 85%. A lower CLTV usually means more flexibility on approval and pricing, while a higher CLTV can limit options or lead to higher interest rates.

Home equity loan vs. HELOC

Both home equity loans and home equity lines of credit (HELOCs) let you borrow against the value of your home, but they work differently.

Home equity loan: You receive a one-time lump sum, usually at a fixed rate, with a fixed repayment schedule. This calculator is designed around that structure.
HELOC: Works more like a credit card secured by your home. You have a credit limit and can draw, repay, and redraw during the draw period. Payments and interest can vary over time.

If you have a specific project budget or want predictable payments, a home equity loan can be easier to plan around. If your needs are staggered over time, a HELOC may offer more flexibility.

When a home equity loan can make sense

Funding renovations or additions that may increase your home’s value.
Consolidating higher-interest debts into a single fixed payment.
Paying for large one-off expenses like tuition or medical bills.

Because your home secures the loan, it’s important not to stretch your budget too far. Use the CLTV estimate and monthly payment to check that you’re comfortable with the extra debt before moving ahead.

Frequently asked questions

Is this home equity loan calculator an approval tool?

No. The calculator is for planning only. It helps you understand how loan amount, term, and rate interact, but your lender will still run their own credit checks and underwriting.

What interest rate should I enter?

You can use a rate quote from a lender, a rate from an online comparison site, or a rough estimate based on current market conditions. Try a slightly higher rate as well to see how a rate change would affect your payment.

What if my CLTV is over 85%?

Some lenders may not approve loans at that level, or may require stronger credit and charge higher rates. Consider reducing the amount you plan to borrow, paying down your existing mortgage further, or waiting until your home value has increased.