A lump-sum home equity loan turns part of your home's equity into cash upfront, repaid on a fixed schedule — this tool prices the payment and checks the amount against an 85% combined loan-to-value ceiling.

How to Use the Home Equity Loan Calculator

Enter your home's current value and what you still owe on the primary mortgage, then the amount you want to borrow, the rate, and the term. The calculator checks that borrowing amount against a typical lender ceiling before running the payment math.

A home equity loan hands you a single lump sum, up front, repaid on a fixed schedule — the mirror image of a HELOC's draw-as-you-go line of credit. Lenders won't let that lump sum eat into all of a home's equity, though; most cap total borrowing (primary mortgage plus the new loan) at somewhere around 85% of the home's value.

Available Equity = max(0, Home Value × 0.85 − Mortgage Balance)

On a $400,000 home with $220,000 still owed, that's $120,000 of room before hitting the 85% combined loan-to-value ceiling — plenty for a $50,000 request, but the calculator flags it the moment your entered amount runs past what's actually available. That flag is advisory, not a hard stop: it's what a lender would likely tell you, not a rule this page enforces.

Once the amount clears that check, the payment itself is standard amortization math:

M = P × [r(1+r)ⁿ] ÷ [(1+r)ⁿ − 1]

P is the amount borrowed (not the home's value or the available equity), r the monthly rate, n the number of monthly payments. Because the rate is usually fixed and the disbursement is one lump sum, the payment behaves exactly like a second mortgage — because that's essentially what it is.

85% is a common ceiling, not a universal one. Some lenders go higher for borrowers with strong credit, others cap lower for investment properties or during tighter lending cycles — treat the figure here as a planning estimate, not a pre-approval.