Home Equity Loan Calculator – Monthly Payment
Calculate monthly payments for a home equity loan (HEL) based on loan amount, rate, and term.
🏠 Finance📐 M = P[r(1+r)^n]/[(1+r)^n-1]
Loan amount ($)
Interest rate (%)
Term (years)
Please enter valid values.
Formula & Reference
| Variable | Formula | Units |
|---|---|---|
| Home Equity Loan Calculator – Monthly Payment | M = P[r(1+r)^n]/[(1+r)^n-1] | $/month |
Step-by-Step Examples
Example 1
$50K at 8%, 10yr
$50,000, 8%, 10 years.
- Monthly: $607 | Interest: $22,768
✓ $607/month
Example 2
$100K, 7.5%, 15yr
$100K, 7.5%, 15 years.
- Monthly: $927 | Interest: $66,866
✓ $927/month
Example 3
HEL vs HELOC
HEL: fixed rate, lump sum. HELOC: variable, revolving.
- HEL best for large known expenses. HELOC for ongoing needs.
✓ Choose based on need
Real-World Applications
Homeowners
Calculate home equity loan payments.
Renovators
Finance improvements with equity.
Consolidators
Pay off high-rate debt with equity.
Planners
Model equity utilization.
Common Mistakes to Avoid
⚠️
Using equity for depreciating assets
Do not risk your home on vacations or consumables — use equity for investments that hold value.
⚠️
Variable HELOC rate risk
HELOC rates are variable and can rise. Model for higher rates before drawing down.
Frequently Asked Questions
HEL vs HELOC? ▾
HEL: fixed amount, fixed rate, predictable. HELOC: revolving credit, variable rate, flexible.
How much can I borrow? ▾
Most lenders allow 80-85% LTV. Home $400K, owe $250K: borrow up to $70K.
Is HEL interest deductible? ▾
Only for home improvement. Not for personal use after 2017 TCJA.