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Home Equity Loan Calculator

Enter the loan amount, annual interest rate, and term in months to find the monthly payment.

How it is calculated

The tool uses the standard fixed-payment amortization formula. The monthly rate is r = annual rate ÷ 100 ÷ 12, and the payment is P = L × r ÷ (1 − (1 + r)−n), where L is the loan amount and n the term in months. If the rate is 0, the payment is simply L ÷ n. Total paid is P × n and total interest is P × n − L, both from the unrounded payment, so they can differ by a few cents from the rounded payment shown times n. The loan amount must be above zero, the term at least one month and the rate not negative. Closing costs, fees, taxes, insurance and the effect of extra payments are not included, and a variable-rate line of credit does not follow this fixed-rate formula.

Worked example

Borrow 50,000 at 8.5% a year for 120 months (10 years). Monthly rate = 8.5 ÷ 100 ÷ 12 = 0.0070833. The growth factor (1.0070833)120 is about 2.33, which puts the payment at $619.93 a month. Over 120 payments the total repaid is $74,391.41, so total interest is 74,391.41 − 50,000 = $24,391.41. Multiplying the rounded $619.93 by 120 gives $74,391.60, a difference of 19 cents caused by rounding.

Try this example →

Common mistakes

  • Entering the term in years. The field is in months: a 10-year loan is 120, not 10.
  • Entering the amount of your home's equity or its value instead of the amount you intend to borrow.
  • Comparing offers by the monthly payment alone. A longer term lowers the payment but raises total interest, so check the total interest too.
  • Entering the rate as a decimal such as 0.085. The field expects percent, so type 8.5.
  • Expecting the result to include closing costs, appraisal fees or taxes, which lenders may charge on top of the interest.

About this calculator

A home equity loan is a lump-sum loan secured against the equity you have built up in your home, repaid in fixed monthly installments over a set term at a fixed interest rate — unlike a home equity line of credit (HELOC), which works more like a revolving credit card with a variable rate. The monthly payment is calculated with the standard amortizing loan formula, spreading both principal and interest across the term so that each payment stays the same while the interest and principal portions gradually shift over time.

Because the loan is secured by the home itself, rates are typically lower than unsecured personal loans or credit cards, which makes home equity loans a common choice for large, one-time expenses like renovations, debt consolidation, or major purchases. Loan amount, annual rate and term in months produce the fixed monthly payment, the interest paid over the loan and the total you will have repaid.

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