Home Equity Loan Calculator what a lender will release
Enter your home's value, what you still owe and the lender's combined loan-to-value ceiling. You get the amount available and the payment that comes with it.
The Ceiling Decides
Lenders cap total debt against the property, usually between 80 and 90 percent of its value.
You Can Have Equity and Nothing to Borrow
If your mortgage already exceeds the ceiling, the available amount is zero.
How much can you borrow against your home?
At a Glance
A home equity loan is a fixed-rate lump sum secured as a second lien on your property. What you can borrow is not your equity — it is the lender's combined loan-to-value ceiling applied to the home's value, minus everything you already owe against it.
Two steps, and the second is the one people skip.
available = (home value × max CLTV) − existing mortgage balanceAccording to Consumer Financial Protection Bureau guidelines, combined loan-to-value means every lien counts, not just the new one. That is why the existing mortgage is subtracted rather than ignored.
M = P · i · (1 + i)ⁿ ÷ ((1 + i)ⁿ − 1)Apply the ceiling to the value
450,000 × 85 % = 382,500 of total debt allowed against the property.
Subtract what is already owed
382,500 − 260,000 = 122,500 available to borrow.
Compare that with the equity held
Value minus mortgage is 450,000 − 260,000 = 190,000 of equity. The ceiling locks 67,500 of it away.
Check the current loan-to-value
260,000 ÷ 450,000 = 57.8 %, comfortably inside the 85 % ceiling — which is why anything is available at all.
Now the hard case
A 300,000 home with 280,000 owed at an 80 % ceiling: the ceiling is 240,000, already below the mortgage. Available: zero, despite 20,000 of equity and a 93.3 % loan-to-value.
A zero result is information, not an error. It means your existing debt already sits at or above what this lender allows. Options are to wait for the balance to fall or the value to rise, or to find a lender with a higher ceiling — some go to 90 % or beyond, at a higher rate.
The gap between equity and availability is the ceiling doing its job. Lenders leave a cushion so a falling market does not immediately put the property underwater. On the defaults that cushion is 67,500.
Your current loan-to-value predicts your rate. The lower it is, the better the pricing, because the second lien is better protected.
Borrowing the maximum is rarely the right call. The figure here is a limit, not a recommendation — the payment scales with whatever you actually take.
The value is an estimate until an appraiser says otherwise. Lenders order their own valuation and use that number. A value that comes inbelow your estimate reduces the available amount by 85 % of the shortfall.
Ceilings vary by lender, credit profile and property type. Investment properties and second homes are typically capped lower than a primary residence. Enter the ceiling you were actually quoted.
Closing costs are not included. Appraisal, title and origination fees are common on second liens, and some lenders roll them into the balance.
This is a second lien on your home. In a default the first mortgage is repaid before this one, which is why it prices higher — and why missing payments risks the property.
Interest deductibility depends on use and jurisdiction, and is not modelled here. Ask a tax adviser rather than assuming.
This calculator is provided for informational purposes and planning purposes only, and is not legal or tax advice. Consult a financial advisor or accountant, and verify the tax and compliance requirements that apply to you, before borrowing against your home. Federal Reserve consumer guidelines are a good starting point.
For a revolving line with a variable rate instead of a fixed lump sum, see the HELOC Payment Calculator. To model the first mortgage itself, use the Mortgage Payment Calculator.