Home Equity Loan Calculator: Monthly Payment & Total Interest
Work out the monthly payment and total interest on a fixed-rate home equity loan — a lump sum borrowed against the equity you have built in your home.
Adjust the inputs and select Calculate for a full breakdown.
Year-by-year amortization schedule
Compare Common Scenarios
How the numbers shift across typical situations for this calculator:
| Scenario | Monthly payment | Total interest | Total of payments |
|---|---|---|---|
| $40k · 8.5% · 15-year | $393.90 | $30,901.25 | $70,901.25 |
| $25k · 9.0% · 10-year | $316.69 | $13,002.73 | $38,002.73 |
| $75k · 8.0% · 20-year | $627.33 | $75,559.21 | $150,559.21 |
| $60k · 7.5% · 15-year | $556.21 | $40,117.33 | $100,117.33 |
How This Calculator Works
Enter the amount you want to borrow against your home equity, the fixed APR, and the repayment term. A home equity loan is a second mortgage: you receive the full amount up front and repay it in equal monthly installments. The calculator turns the APR into a monthly rate and applies the amortization formula to find one constant payment, then shows how the balance falls year by year.
The Formula
Fixed-Rate Amortization
P = loan amount, r = monthly rate (APR ÷ 12), n = number of monthly payments
Worked Example
Borrowing $40,000 of home equity at 8.5% APR over 15 years gives a monthly payment of about $394. Across the full term you repay roughly $70,900, so interest adds close to $30,900 to the amount you originally drew.
Key Insight
A home equity loan is secured by your house, so the rate is far lower than unsecured borrowing — but missed payments put the home itself at risk. Borrow only what a renovation or consolidation genuinely requires, not the full equity available.
Frequently Asked Questions
What is a home equity loan?
It is a loan secured by the equity in your home — the difference between the home's value and your remaining mortgage. You receive a lump sum and repay it at a fixed rate over a set term.
How is it different from a HELOC?
A home equity loan pays out a fixed lump sum repaid on a set schedule. A HELOC is a revolving credit line you draw on as needed, usually at a variable rate. This calculator models the fixed-loan version.
How much equity can I borrow?
Lenders typically allow your mortgage plus the home equity loan to reach around 80 to 85 percent of the home's value. The exact limit depends on the lender, your credit, and your income.
Is the interest tax deductible?
Interest may be deductible when the loan is used to buy, build, or substantially improve the home that secures it. The rules change, so confirm your situation with a tax professional.
What happens if I cannot repay?
Because the loan is secured by your home, sustained non-payment can lead to foreclosure. Contact the lender early if you expect difficulty, as many offer hardship arrangements.
Related Calculators
Data Sources & Benchmarks
This calculator draws on 3 independent, dated sources. The starting values for interest rate are taken from the benchmarks below and refresh whenever the snapshots are updated.
Methodology & Review
Payments use the standard fixed-rate amortization formula. The calculator assumes a fixed APR with no closing costs financed into the balance; results are checked against lender disclosures.
Written by Ugo Candido · Last updated May 17, 2026.