Enter Loan Details
Example Data Table
| Scenario | Home Value | Mortgage Balance | Requested Loan | APR | Term | Max CLTV |
|---|---|---|---|---|---|---|
| Primary Estimate | $450,000 | $220,000 | $60,000 | 8.25% | 15 years | 85% |
| Higher Borrowing Case | $600,000 | $280,000 | $100,000 | 8.90% | 20 years | 90% |
| Conservative Case | $375,000 | $210,000 | $30,000 | 7.75% | 10 years | 80% |
Formula Used
This calculator combines equity, combined leverage, amortization, and closing cost estimates in one place.
- Available Equity = Home Value − Current Mortgage Balance
- Maximum Borrowable Amount = (Home Value × Max CLTV) − Current Mortgage Balance
- Approved Loan = Lesser of Requested Loan and Maximum Borrowable Amount
- Monthly Rate = APR ÷ 12
- Monthly Payment = P × r ÷ [1 − (1 + r)−n]
- Combined LTV = (Current Mortgage + New Loan) ÷ Home Value
- Total Interest = Total of All Payments − Approved Loan Amount
- Total Upfront Fees = Origination Fee + Appraisal Fee + Other Closing Costs
- Estimated Total Monthly Housing Cost = First Mortgage + Home Equity Payment + Monthly Tax + Monthly Insurance + HOA
How to Use This Calculator
- Enter your current property value and the balance remaining on your primary mortgage.
- Add the loan amount you want to borrow, or leave a realistic figure for scenario testing.
- Set the CLTV limit, annual rate, and repayment term.
- Include fees, taxes, insurance, HOA dues, and your current first mortgage payment.
- Click the calculate button to see borrowing capacity, payment size, leverage, and total costs.
- Review the amortization schedule and chart, then export the results as CSV or PDF.
Frequently Asked Questions
1. What does a home equity loan calculator estimate?
It estimates how much you may borrow, your monthly payment, combined loan-to-value ratio, upfront fees, and total interest over the chosen term.
2. What is CLTV in this calculator?
CLTV means combined loan-to-value. It measures your first mortgage plus the new home equity loan against the property value.
3. Why can the approved amount be lower than requested?
The approved amount is capped by the CLTV limit. If your requested loan pushes combined debt above that threshold, the result is reduced.
4. Does this tool include closing costs?
Yes. It includes origination charges, appraisal cost, and other closing costs so you can compare gross borrowing with net usable funds.
5. Is the payment fixed for the full term?
This version assumes a fixed-rate home equity loan. The payment remains stable unless the rate, term, or loan amount changes.
6. Does the calculator replace lender approval?
No. It is a planning tool. Lenders may apply credit score rules, income tests, appraisal results, reserve requirements, and product-specific limits.
7. Should I include taxes and insurance?
Yes, if you want a fuller monthly housing estimate. These costs help you evaluate total affordability rather than only the new loan payment.
8. What does net funds after closing mean?
It shows the approved loan amount minus estimated upfront charges. That figure helps you understand the cash you may actually keep.