Home Equity Loan Calculator — LTV Limits & Equity Stack Visualization
Calculate how much home equity you can borrow with a fixed-rate home equity loan. See max LTV by credit profile, monthly payment, and an equity stack bar chart showing how your home value is distributed across mortgage, loan, and remaining equity.
Home Equity Loan
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Enter Values
Remaining Equity After Loan
$100,000
Total Interest Paid (Full Term)
$12,012
Closing Costs
$2,000
Max CLTV (Based on Credit)
85%
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The Formula
Lenders limit the combined loan-to-value ratio based on your credit score. The CLTV tells you how much of your home equity you can actually access. Most lenders cap CLTV at 80-85% for excellent credit, meaning you must maintain at least 15-20% equity in your home after the new loan.
Variable Definitions
Combined LTV & Accessible Equity
CLTV is the total of all loans against your home divided by its value. Accessible equity is home value × max CLTV percentage minus existing mortgage balance. Most lenders cap CLTV at 85% for excellent credit, meaning you must keep at least 15% equity.
Your Home Equity
Current home value minus what you owe on your first mortgage. A significant portion of this is unavailable because lenders require you to keep a minimum equity stake in the property.
Home Equity Line of Credit
A revolving line of credit secured by your home with a variable interest rate. Unlike a home equity loan, you draw funds as needed and only pay interest on the amount borrowed.
How to Use This Calculator
- 1
Enter your home's estimated market value and existing first mortgage balance.
- 2
Select your credit profile and enter the amount you want to borrow — the calculator flags if it exceeds your maximum CLTV limit.
- 3
Enter the interest rate and loan term, then review the equity stack visualization to see how your home value is distributed.
Common Applications
- Calculate the fixed monthly payment for a home equity loan lump sum based on your available equity, interest rate, and term.
- Compare a home equity loan against a HELOC to decide which borrowing option suits your renovation or debt consolidation needs.
- Determine whether you qualify by checking your combined loan-to-value ratio against lender limits for your credit profile.
Your CLTV equals all loans against your home divided by its value — lenders cap this at 80-85% to protect themselves from market declines
Understanding the Concept
A home equity loan (sometimes called a second mortgage) lets you borrow against the equity you have built in your home. Unlike a HELOC (Home EquityThe difference between the market value of an asset and the amount owed on it. For a home, equity = home value minus mortgage balance. Line of Credit), which is a revolving line of credit with a variable rate, a home equity loan provides a lump sum with a fixed interest rate and fixed monthly payments over a set term. Lenders evaluate your Combined Loan-to-Value (CLTV) ratio — the sum of your first mortgage balance and the new home equity loan divided by your home's current market value. Most lenders cap CLTV at 80-85% for borrowers with excellent credit, though some will go to 90% at higher rates. The equity stack chart in this calculator shows how your home value is partitioned: the first mortgage occupies the bottom portion, the home equity loan sits on top of that, and your remaining untapped equity is at the top. This visual makes it clear exactly how much of your home's value you control free and clear.
Frequently Asked Questions
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