Free Home Equity Loan Calculator

Calculate the monthly payment, total interest, and total cost of a fixed-rate home equity loan.

USD
%
years

Monthly Payment

$716.74

Total Amount Paid$129,013
Total Interest Paid$54,013
Interest-to-Principal Ratio72.0%

Monthly Payment vs Loan Term

Home Equity Loan Basics

A home equity loan provides a lump sum at a fixed interest rate, repaid in equal monthly installments over a set term. Your home serves as collateral.

Payment Formula

Monthly Payment = P x r x (1+r)^n / ((1+r)^n - 1)

Where P is the loan amount, r is the monthly interest rate, and n is the total number of payments.

Typical Terms

  • Fixed rates, usually 1-2% higher than first mortgage rates
  • Terms from 5 to 30 years
  • Can borrow up to 80-85% of your home equity
  • Interest may be tax deductible if used for home improvements
  • Example Calculation

    A $75,000 home equity loan at 8% fixed for 15 years.

    1. 01Monthly rate: 8% / 12 = 0.6667%
    2. 02Number of payments: 15 x 12 = 180
    3. 03Monthly payment: $75,000 x 0.006667 x (1.006667)^180 / ((1.006667)^180 - 1) = $716.74
    4. 04Total paid: $716.74 x 180 = $129,013
    5. 05Total interest: $129,013 - $75,000 = $54,013
    6. 06Interest-to-principal ratio: $54,013 / $75,000 = 72.0%

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