🏡 Home Equity Loan Calculator 2026
Estimate how much you can borrow with a home equity loan, calculate your monthly payments, and see the full amortization schedule. Updated with 2026 rates and LTV limits.
What Is a Home Equity Loan Calculator?
A home equity loan calculator helps you determine how much you can borrow against the equity in your home, estimate your monthly payments, and understand the total cost of borrowing. Home equity loans are a popular way to access cash for home improvements, debt consolidation, education, or major expenses.
This calculator uses the combined loan-to-value (CLTV) ratio to determine your maximum loan amount. Most lenders allow you to borrow up to 80-90% of your home's value, minus any existing mortgage balance.
How Does the Home Equity Loan Calculator Work?
The calculator performs the following steps:
- Calculates your total equity , current home value minus your mortgage balance.
- Determines the maximum loan amount , (home value × max LTV) − mortgage balance.
- Adjusts for your desired loan amount , if you enter one, it will use the lesser of your desired amount and the maximum.
- Calculates the monthly payment , using the loan amount, interest rate, and loan term.
- Generates a full amortization schedule , showing every payment over the life of the loan.
- Estimates closing costs , as a percentage of the loan amount.
2026 Home Equity Loan Rates & Limits
- Average Rates: 10-year home equity loan ~8.14%, 15-year ~8.67%
- 2026 Low: Home equity loan rates hit 7.36% in mid-March
- Current Average: ~7.35% for a fixed-rate home equity loan (as of August 2026)
- Max LTV: Most lenders cap at 80-85%, some allow up to 90%
- Credit Score: Typically need 680+ for 10% equity remaining, 740+ for 20% equity remaining
Why Use This Home Equity Loan Calculator?
- Updated for 2026: Uses current rates (7.35% average) and LTV limits (90% max).
- Full Amortization: See every payment over the life of the loan.
- Desired Loan Amount: Enter a specific amount to see if it's affordable.
- Visual Chart: See your equity, existing mortgage, and potential loan at a glance.
- Free & Private: No registration, no data storage , all calculations are done in your browser.
❓ Home Equity Loan Calculator FAQ
What is a home equity loan?
A home equity loan is a type of second mortgage that allows you to borrow against the equity you've built in your home. You receive a lump sum of cash and repay it with fixed monthly payments over a set term.
What is the difference between a home equity loan and a HELOC?
A home equity loan gives you a lump sum with a fixed rate and fixed payments. A HELOC (home equity line of credit) works like a credit card , you can draw funds as needed, usually with a variable rate.
What is the maximum LTV for a home equity loan in 2026?
Most lenders cap the combined loan-to-value (CLTV) at 80-85%, but some allow up to 90% for well-qualified borrowers.
What credit score do I need for a home equity loan?
Most lenders require a credit score of 680+ with at least 20% equity remaining. For 10% equity remaining, you typically need 740+.
What are the current home equity loan rates in 2026?
As of August 2026, the national average for a fixed-rate home equity loan is ~7.35%. Rates vary based on credit score, LTV, and lender.
How is home equity calculated?
Home Equity = Current Home Value − Mortgage Balance. For example, if your home is worth $400,000 and you owe $250,000, you have $150,000 in equity.
What can I use a home equity loan for?
Common uses include home improvements, debt consolidation, education expenses, medical bills, or major purchases.
Is a home equity loan tax deductible in 2026?
Interest on home equity loans is tax deductible if the funds are used to buy, build, or substantially improve your home. Consult a tax professional for your specific situation.
How accurate is this calculator?
This calculator provides accurate estimates based on current 2026 rates and standard formulas. However, actual loan terms depend on your lender, credit score, and other factors. Use this as a planning tool and consult a lender for a precise quote.
Is this calculator free to use?
Yes, this calculator is completely free to use. No registration or personal data storage is required. All calculations are performed in your browser.