Home Equity Loan Calculator

Year	Interest	Principal	Ending Balance
1	$11,804.97	$5,396.77	$144,603.23
2	$11,357.04	$5,844.70	$138,758.53
3	$10,871.93	$6,329.81	$132,428.72
4	$10,346.56	$6,855.18	$125,573.54
5	$9,777.58	$7,424.15	$118,149.39
6	$9,161.38	$8,040.36	$110,109.03
7	$8,494.04	$8,707.70	$101,401.33
8	$7,771.30	$9,430.44	$91,970.90
9	$6,988.58	$10,213.16	$81,757.74
10	$6,140.89	$11,060.84	$70,696.90
11	$5,222.85	$11,978.89	$58,718.01
12	$4,228.61	$12,973.13	$45,744.88
13	$3,151.84	$14,049.89	$31,694.98
14	$1,985.71	$15,216.03	$16,478.95
15	$722.79	$16,478.95	$0.00

Year

Interest

Principal

Ending Balance

$11,804.97

$5,396.77

$144,603.23

$11,357.04

$5,844.70

$138,758.53

$10,871.93

$6,329.81

$132,428.72

$10,346.56

$6,855.18

$125,573.54

$9,777.58

$7,424.15

$118,149.39

$9,161.38

$8,040.36

$110,109.03

$8,494.04

$8,707.70

$101,401.33

$7,771.30

$9,430.44

$91,970.90

$6,988.58

$10,213.16

$81,757.74

$6,140.89

$11,060.84

$70,696.90

$5,222.85

$11,978.89

$58,718.01

$4,228.61

$12,973.13

$45,744.88

$3,151.84

$14,049.89

$31,694.98

$1,985.71

$15,216.03

$16,478.95

$722.79

$16,478.95

$0.00

Month	Interest	Principal	Ending Balance
1	$1,000.00	$433.48	$149,566.52
2	$997.11	$436.37	$149,130.15
3	$994.20	$439.28	$148,690.88
4	$991.27	$442.21	$148,248.67
5	$988.32	$445.15	$147,803.52
6	$985.36	$448.12	$147,355.40
7	$982.37	$451.11	$146,904.29
8	$979.36	$454.12	$146,450.17
9	$976.33	$457.14	$145,993.03
10	$973.29	$460.19	$145,532.84
11	$970.22	$463.26	$145,069.58
12	$967.13	$466.35	$144,603.23
End of year 1
13	$964.02	$469.46	$144,133.77
14	$960.89	$472.59	$143,661.19
15	$957.74	$475.74	$143,185.45
16	$954.57	$478.91	$142,706.54
17	$951.38	$482.10	$142,224.44
18	$948.16	$485.32	$141,739.12
19	$944.93	$488.55	$141,250.57
20	$941.67	$491.81	$140,758.77
21	$938.39	$495.09	$140,263.68
22	$935.09	$498.39	$139,765.29
23	$931.77	$501.71	$139,263.58
24	$928.42	$505.05	$138,758.53
End of year 2
25	$925.06	$508.42	$138,250.11
26	$921.67	$511.81	$137,738.30
27	$918.26	$515.22	$137,223.07
28	$914.82	$518.66	$136,704.42
29	$911.36	$522.12	$136,182.30
30	$907.88	$525.60	$135,656.71
31	$904.38	$529.10	$135,127.61
32	$900.85	$532.63	$134,594.98
33	$897.30	$536.18	$134,058.80
34	$893.73	$539.75	$133,519.05
35	$890.13	$543.35	$132,975.70
36	$886.50	$546.97	$132,428.72
End of year 3
37	$882.86	$550.62	$131,878.10
38	$879.19	$554.29	$131,323.81
39	$875.49	$557.99	$130,765.83
40	$871.77	$561.71	$130,204.12
41	$868.03	$565.45	$129,638.67
42	$864.26	$569.22	$129,069.45
43	$860.46	$573.02	$128,496.43
44	$856.64	$576.84	$127,919.60
45	$852.80	$580.68	$127,338.92
46	$848.93	$584.55	$126,754.37
47	$845.03	$588.45	$126,165.92
48	$841.11	$592.37	$125,573.54
End of year 4
49	$837.16	$596.32	$124,977.22
50	$833.18	$600.30	$124,376.93
51	$829.18	$604.30	$123,772.63
52	$825.15	$608.33	$123,164.30
53	$821.10	$612.38	$122,551.92
54	$817.01	$616.47	$121,935.45
55	$812.90	$620.58	$121,314.88
56	$808.77	$624.71	$120,690.17
57	$804.60	$628.88	$120,061.29
58	$800.41	$633.07	$119,428.22
59	$796.19	$637.29	$118,790.93
60	$791.94	$641.54	$118,149.39
End of year 5
61	$787.66	$645.82	$117,503.57
62	$783.36	$650.12	$116,853.45
63	$779.02	$654.46	$116,199.00
64	$774.66	$658.82	$115,540.18
65	$770.27	$663.21	$114,876.97
66	$765.85	$667.63	$114,209.34
67	$761.40	$672.08	$113,537.26
68	$756.92	$676.56	$112,860.69
69	$752.40	$681.07	$112,179.62
70	$747.86	$685.61	$111,494.01
71	$743.29	$690.18	$110,803.82
72	$738.69	$694.79	$110,109.03
End of year 6
73	$734.06	$699.42	$109,409.62
74	$729.40	$704.08	$108,705.54
75	$724.70	$708.77	$107,996.76
76	$719.98	$713.50	$107,283.26
77	$715.22	$718.26	$106,565.01
78	$710.43	$723.04	$105,841.96
79	$705.61	$727.87	$105,114.10
80	$700.76	$732.72	$104,381.38
81	$695.88	$737.60	$103,643.78
82	$690.96	$742.52	$102,901.26
83	$686.01	$747.47	$102,153.79
84	$681.03	$752.45	$101,401.33
End of year 7
85	$676.01	$757.47	$100,643.86
86	$670.96	$762.52	$99,881.35
87	$665.88	$767.60	$99,113.74
88	$660.76	$772.72	$98,341.02
89	$655.61	$777.87	$97,563.15
90	$650.42	$783.06	$96,780.09
91	$645.20	$788.28	$95,991.82
92	$639.95	$793.53	$95,198.28
93	$634.66	$798.82	$94,399.46
94	$629.33	$804.15	$93,595.31
95	$623.97	$809.51	$92,785.80
96	$618.57	$814.91	$91,970.90
End of year 8
97	$613.14	$820.34	$91,150.56
98	$607.67	$825.81	$90,324.75
99	$602.17	$831.31	$89,493.44
100	$596.62	$836.86	$88,656.58
101	$591.04	$842.43	$87,814.15
102	$585.43	$848.05	$86,966.10
103	$579.77	$853.70	$86,112.39
104	$574.08	$859.40	$85,253.00
105	$568.35	$865.12	$84,387.87
106	$562.59	$870.89	$83,516.98
107	$556.78	$876.70	$82,640.28
108	$550.94	$882.54	$81,757.74
End of year 9
109	$545.05	$888.43	$80,869.31
110	$539.13	$894.35	$79,974.96
111	$533.17	$900.31	$79,074.65
112	$527.16	$906.31	$78,168.34
113	$521.12	$912.36	$77,255.98
114	$515.04	$918.44	$76,337.54
115	$508.92	$924.56	$75,412.98
116	$502.75	$930.72	$74,482.26
117	$496.55	$936.93	$73,545.33
118	$490.30	$943.18	$72,602.15
119	$484.01	$949.46	$71,652.69
120	$477.68	$955.79	$70,696.90
End of year 10
121	$471.31	$962.17	$69,734.73
122	$464.90	$968.58	$68,766.15
123	$458.44	$975.04	$67,791.11
124	$451.94	$981.54	$66,809.58
125	$445.40	$988.08	$65,821.49
126	$438.81	$994.67	$64,826.83
127	$432.18	$1,001.30	$63,825.53
128	$425.50	$1,007.97	$62,817.55
129	$418.78	$1,014.69	$61,802.86
130	$412.02	$1,021.46	$60,781.40
131	$405.21	$1,028.27	$59,753.13
132	$398.35	$1,035.12	$58,718.01
End of year 11
133	$391.45	$1,042.02	$57,675.98
134	$384.51	$1,048.97	$56,627.01
135	$377.51	$1,055.96	$55,571.05
136	$370.47	$1,063.00	$54,508.04
137	$363.39	$1,070.09	$53,437.95
138	$356.25	$1,077.23	$52,360.72
139	$349.07	$1,084.41	$51,276.32
140	$341.84	$1,091.64	$50,184.68
141	$334.56	$1,098.91	$49,085.77
142	$327.24	$1,106.24	$47,979.53
143	$319.86	$1,113.61	$46,865.91
144	$312.44	$1,121.04	$45,744.88
End of year 12
145	$304.97	$1,128.51	$44,616.36
146	$297.44	$1,136.04	$43,480.33
147	$289.87	$1,143.61	$42,336.72
148	$282.24	$1,151.23	$41,185.48
149	$274.57	$1,158.91	$40,026.58
150	$266.84	$1,166.63	$38,859.94
151	$259.07	$1,174.41	$37,685.53
152	$251.24	$1,182.24	$36,503.29
153	$243.36	$1,190.12	$35,313.17
154	$235.42	$1,198.06	$34,115.11
155	$227.43	$1,206.04	$32,909.06
156	$219.39	$1,214.08	$31,694.98
End of year 13
157	$211.30	$1,222.18	$30,472.80
158	$203.15	$1,230.33	$29,242.48
159	$194.95	$1,238.53	$28,003.95
160	$186.69	$1,246.79	$26,757.16
161	$178.38	$1,255.10	$25,502.07
162	$170.01	$1,263.46	$24,238.60
163	$161.59	$1,271.89	$22,966.71
164	$153.11	$1,280.37	$21,686.35
165	$144.58	$1,288.90	$20,397.44
166	$135.98	$1,297.50	$19,099.95
167	$127.33	$1,306.15	$17,793.80
168	$118.63	$1,314.85	$16,478.95
End of year 14
169	$109.86	$1,323.62	$15,155.33
170	$101.04	$1,332.44	$13,822.89
171	$92.15	$1,341.33	$12,481.57
172	$83.21	$1,350.27	$11,131.30
173	$74.21	$1,359.27	$9,772.03
174	$65.15	$1,368.33	$8,403.70
175	$56.02	$1,377.45	$7,026.24
176	$46.84	$1,386.64	$5,639.61
177	$37.60	$1,395.88	$4,243.73
178	$28.29	$1,405.19	$2,838.54
179	$18.92	$1,414.55	$1,423.98
180	$9.49	$1,423.98	$0.00
End of year 15

Month

Interest

Principal

Ending Balance

$1,000.00

$433.48

$149,566.52

$997.11

$436.37

$149,130.15

$994.20

$439.28

$148,690.88

$991.27

$442.21

$148,248.67

$988.32

$445.15

$147,803.52

$985.36

$448.12

$147,355.40

$982.37

$451.11

$146,904.29

$979.36

$454.12

$146,450.17

$976.33

$457.14

$145,993.03

$973.29

$460.19

$145,532.84

$970.22

$463.26

$145,069.58

$967.13

$466.35

$144,603.23

End of year 1

$964.02

$469.46

$144,133.77

$960.89

$472.59

$143,661.19

$957.74

$475.74

$143,185.45

$954.57

$478.91

$142,706.54

$951.38

$482.10

$142,224.44

$948.16

$485.32

$141,739.12

$944.93

$488.55

$141,250.57

$941.67

$491.81

$140,758.77

$938.39

$495.09

$140,263.68

$935.09

$498.39

$139,765.29

$931.77

$501.71

$139,263.58

$928.42

$505.05

$138,758.53

End of year 2

$925.06

$508.42

$138,250.11

$921.67

$511.81

$137,738.30

$918.26

$515.22

$137,223.07

$914.82

$518.66

$136,704.42

$911.36

$522.12

$136,182.30

$907.88

$525.60

$135,656.71

$904.38

$529.10

$135,127.61

$900.85

$532.63

$134,594.98

$897.30

$536.18

$134,058.80

$893.73

$539.75

$133,519.05

$890.13

$543.35

$132,975.70

$886.50

$546.97

$132,428.72

End of year 3

$882.86

$550.62

$131,878.10

$879.19

$554.29

$131,323.81

$875.49

$557.99

$130,765.83

$871.77

$561.71

$130,204.12

$868.03

$565.45

$129,638.67

$864.26

$569.22

$129,069.45

$860.46

$573.02

$128,496.43

$856.64

$576.84

$127,919.60

$852.80

$580.68

$127,338.92

$848.93

$584.55

$126,754.37

$845.03

$588.45

$126,165.92

$841.11

$592.37

$125,573.54

End of year 4

$837.16

$596.32

$124,977.22

$833.18

$600.30

$124,376.93

$829.18

$604.30

$123,772.63

$825.15

$608.33

$123,164.30

$821.10

$612.38

$122,551.92

$817.01

$616.47

$121,935.45

$812.90

$620.58

$121,314.88

$808.77

$624.71

$120,690.17

$804.60

$628.88

$120,061.29

$800.41

$633.07

$119,428.22

$796.19

$637.29

$118,790.93

$791.94

$641.54

$118,149.39

End of year 5

$787.66

$645.82

$117,503.57

$783.36

$650.12

$116,853.45

$779.02

$654.46

$116,199.00

$774.66

$658.82

$115,540.18

$770.27

$663.21

$114,876.97

$765.85

$667.63

$114,209.34

$761.40

$672.08

$113,537.26

$756.92

$676.56

$112,860.69

$752.40

$681.07

$112,179.62

$747.86

$685.61

$111,494.01

$743.29

$690.18

$110,803.82

$738.69

$694.79

$110,109.03

End of year 6

$734.06

$699.42

$109,409.62

$729.40

$704.08

$108,705.54

$724.70

$708.77

$107,996.76

$719.98

$713.50

$107,283.26

$715.22

$718.26

$106,565.01

$710.43

$723.04

$105,841.96

$705.61

$727.87

$105,114.10

$700.76

$732.72

$104,381.38

$695.88

$737.60

$103,643.78

$690.96

$742.52

$102,901.26

$686.01

$747.47

$102,153.79

$681.03

$752.45

$101,401.33

End of year 7

$676.01

$757.47

$100,643.86

$670.96

$762.52

$99,881.35

$665.88

$767.60

$99,113.74

$660.76

$772.72

$98,341.02

$655.61

$777.87

$97,563.15

$650.42

$783.06

$96,780.09

$645.20

$788.28

$95,991.82

$639.95

$793.53

$95,198.28

$634.66

$798.82

$94,399.46

$629.33

$804.15

$93,595.31

$623.97

$809.51

$92,785.80

$618.57

$814.91

$91,970.90

End of year 8

$613.14

$820.34

$91,150.56

$607.67

$825.81

$90,324.75

$602.17

$831.31

$89,493.44

100

$596.62

$836.86

$88,656.58

101

$591.04

$842.43

$87,814.15

102

$585.43

$848.05

$86,966.10

103

$579.77

$853.70

$86,112.39

104

$574.08

$859.40

$85,253.00

105

$568.35

$865.12

$84,387.87

106

$562.59

$870.89

$83,516.98

107

$556.78

$876.70

$82,640.28

108

$550.94

$882.54

$81,757.74

End of year 9

109

$545.05

$888.43

$80,869.31

110

$539.13

$894.35

$79,974.96

111

$533.17

$900.31

$79,074.65

112

$527.16

$906.31

$78,168.34

113

$521.12

$912.36

$77,255.98

114

$515.04

$918.44

$76,337.54

115

$508.92

$924.56

$75,412.98

116

$502.75

$930.72

$74,482.26

117

$496.55

$936.93

$73,545.33

118

$490.30

$943.18

$72,602.15

119

$484.01

$949.46

$71,652.69

120

$477.68

$955.79

$70,696.90

End of year 10

121

$471.31

$962.17

$69,734.73

122

$464.90

$968.58

$68,766.15

123

$458.44

$975.04

$67,791.11

124

$451.94

$981.54

$66,809.58

125

$445.40

$988.08

$65,821.49

126

$438.81

$994.67

$64,826.83

127

$432.18

$1,001.30

$63,825.53

128

$425.50

$1,007.97

$62,817.55

129

$418.78

$1,014.69

$61,802.86

130

$412.02

$1,021.46

$60,781.40

131

$405.21

$1,028.27

$59,753.13

132

$398.35

$1,035.12

$58,718.01

End of year 11

133

$391.45

$1,042.02

$57,675.98

134

$384.51

$1,048.97

$56,627.01

135

$377.51

$1,055.96

$55,571.05

136

$370.47

$1,063.00

$54,508.04

137

$363.39

$1,070.09

$53,437.95

138

$356.25

$1,077.23

$52,360.72

139

$349.07

$1,084.41

$51,276.32

140

$341.84

$1,091.64

$50,184.68

141

$334.56

$1,098.91

$49,085.77

142

$327.24

$1,106.24

$47,979.53

143

$319.86

$1,113.61

$46,865.91

144

$312.44

$1,121.04

$45,744.88

End of year 12

145

$304.97

$1,128.51

$44,616.36

146

$297.44

$1,136.04

$43,480.33

147

$289.87

$1,143.61

$42,336.72

148

$282.24

$1,151.23

$41,185.48

149

$274.57

$1,158.91

$40,026.58

150

$266.84

$1,166.63

$38,859.94

151

$259.07

$1,174.41

$37,685.53

152

$251.24

$1,182.24

$36,503.29

153

$243.36

$1,190.12

$35,313.17

154

$235.42

$1,198.06

$34,115.11

155

$227.43

$1,206.04

$32,909.06

156

$219.39

$1,214.08

$31,694.98

End of year 13

157

$211.30

$1,222.18

$30,472.80

158

$203.15

$1,230.33

$29,242.48

159

$194.95

$1,238.53

$28,003.95

160

$186.69

$1,246.79

$26,757.16

161

$178.38

$1,255.10

$25,502.07

162

$170.01

$1,263.46

$24,238.60

163

$161.59

$1,271.89

$22,966.71

164

$153.11

$1,280.37

$21,686.35

165

$144.58

$1,288.90

$20,397.44

166

$135.98

$1,297.50

$19,099.95

167

$127.33

$1,306.15

$17,793.80

168

$118.63

$1,314.85

$16,478.95

End of year 14

169

$109.86

$1,323.62

$15,155.33

170

$101.04

$1,332.44

$13,822.89

171

$92.15

$1,341.33

$12,481.57

172

$83.21

$1,350.27

$11,131.30

173

$74.21

$1,359.27

$9,772.03

174

$65.15

$1,368.33

$8,403.70

175

$56.02

$1,377.45

$7,026.24

176

$46.84

$1,386.64

$5,639.61

177

$37.60

$1,395.88

$4,243.73

178

$28.29

$1,405.19

$2,838.54

179

$18.92

$1,414.55

$1,423.98

180

$9.49

$1,423.98

$0.00

End of year 15

What is a Home Equity Loan?

A home equity loan (commonly called a second mortgage) is a fixed-rate installment loan secured by the equity you have built in your primary residence or eligible property. When your loan closes, the lender delivers a single lump-sum cash disbursement, which you repay over a fixed schedule (typically between 5 and 30 years) with stable, predictable monthly payments.

Because your home serves as collateral, home equity loans carry much lower interest rates than unsecured borrowing vehicles such as credit cards, personal signature loans, or lines of credit.

How Is Your Borrowing Limit Calculated?

Lenders establish borrowing caps primarily through your Combined Loan-to-Value (CLTV) ratio. This represents the total balance of all loans secured by the property divided by the current appraised market value:

Maximum Borrowable = (Appraised Property Value × Lender Max LTV %) − Current Mortgage Balance

Example Scenario

Home Market Value: $600,000
Existing Mortgage Balance: $250,000
Current LTV: $250,000 ÷ $600,000 = 41.7%
Lender Maximum Allowed LTV: 80% ($480,000 cap)

Resulting Capacity

Maximum total allowed debt: $600,000 × 80% = $480,000.
Deducting your first mortgage ($250,000) leaves $230,000 as your maximum available home equity loan.

Home Equity Loan vs. HELOC vs. Cash-Out Refinance

Comparison Factor	Home Equity Loan	HELOC	Cash-Out Refinance
Payout Mechanism	Upfront one-time lump sum	Revolving credit line (draw period)	Lump sum (replaces primary loan)
Interest Rate Type	Fixed rate throughout term	Variable (tracks Prime rate)	Fixed or Adjustable
Monthly Payment Stability	100% predictable payments	Fluctuates based on draws & index	Single consolidated payment
Primary Mortgage Protection	Preserves low first mortgage rate	Preserves low first mortgage rate	Resets entire balance at current rates
Best Application	Defined large expenses (roof, wedding)	Phased projects (tuition, remodeling)	When market rates drop below existing loan

Understanding Closing Costs and APR

Closing expenses on home equity loans typically total between 2% and 5% of the borrowed amount. These costs cover administrative, legal, and third-party fees required to underwrite and register the second mortgage:

Appraisal Fee

Professional independent assessment confirming your home’s current fair market valuation.

Origination Fee

Lender processing and administrative charges for underwriting the loan application.

Title Search & Insurance

Verifies that no conflicting liens or judgments cloud ownership of the real estate.

Document & Recording

Municipal recording fees ensuring the second lien is officially filed in county public records.

Why APR matters: The Annual Percentage Rate (APR) incorporates upfront closing costs alongside the nominal note rate. Because closing costs reduce the net funding you actually receive, the APR is slightly higher than the nominal rate and represents your true annualized cost of capital.

Frequently Asked Questions

What credit score is needed to qualify for a home equity loan?

Most institutional lenders require a minimum FICO credit score of 620, while premium pricing and maximum borrowing capacity generally require a score of 680 or higher. Borrowers with scores in the mid-700s qualify for the lowest fixed interest rates.

Is home equity loan interest tax-deductible?

Under the IRS Tax Cuts and Jobs Act (TCJA), interest paid on home equity loans is only tax-deductible if the borrowed funds are utilized exclusively to "buy, build, or substantially improve" the qualified home that secures the debt. Using funds for general debt consolidation or personal vacations is not tax-deductible. Always consult a licensed CPA or tax advisor.

What happens if property values decline after taking the loan?

Your fixed monthly payment and repayment obligations remain unchanged regardless of subsequent market fluctuations. However, a steep market drop could result in "negative equity" (owing more than your house is currently worth), which could complicate selling or refinancing the home until your balances are paid down.

Are there penalties for paying off a home equity loan early?

Most standard home equity loans do not carry prepayment penalties. However, some "no-closing-cost" loans may charge an early closure fee if the account is satisfied or refinanced within the initial 24 to 36 months, allowing the lender to recoup upfront fees they absorbed on your behalf.

1 Payment & Cost Calculator

Loan Summary

Breakdown of Loan Payments

Amortization Schedule

2 The Loan Amount You Can Borrow

Borrowing Estimate

What is a Home Equity Loan?

How Is Your Borrowing Limit Calculated?

Example Scenario

Resulting Capacity

Home Equity Loan vs. HELOC vs. Cash-Out Refinance

Understanding Closing Costs and APR

Appraisal Fee

Origination Fee

Title Search & Insurance

Document & Recording

Frequently Asked Questions

What credit score is needed to qualify for a home equity loan?

Is home equity loan interest tax-deductible?

What happens if property values decline after taking the loan?

Are there penalties for paying off a home equity loan early?

Method, example and limitations

How the calculation works

Example to check

Before using the result