Home Equity Loan Calculator

How it works

Separating available equity from the loan payment

Available home equity and an affordable home-equity loan are different questions. The equity worksheet uses the property value, existing debt, and entered lending limit to estimate capacity. The payment mode then models repayment on a chosen amount. A change in the property-value estimate can change available equity without changing your income or the cash available for monthly payments.

Loan & schedule: formula and assumptions

Payment = P × r / [1−(1+r)^−n], where r is the monthly rate.

Equal monthly payments amortize a fixed-rate loan. Extra payments reduce principal after the regular payment.

Available home equity: formula and assumptions

Additional borrowing=max(0,home value×maximum combined LTV−existing debt).

Borrowing capacity does not guarantee lender approval. Net cash deducts the entered closing fees.

Worked example

Reference example currency: USD. These fixed examples do not change with your calculator preferences.

Using the Loan & schedule example:

Loan amount ($)

250000

Annual interest rate (%)

6.5

Term (years)

30

Extra monthly payment ($)

0

First payment month

2026-11-01

Payment = P × r / [1−(1+r)^−n], where r is the monthly rate.

Example result

These are illustrative inputs. Change the values to explore a different scenario.

What to keep in mind

Fees, variable rates, collateral requirements, and lender-specific payment conventions are not automatically included.

Formula references

• CFPB: understanding mortgages (opens in a new tab)
• Investor.gov: financial tools and calculators (opens in a new tab)

References explain the underlying methods; they do not imply endorsement or individual professional review of Finflo.

Common questions