Home Equity Loan Calculator
Monthly payment on a home equity loan.
Calculate monthly payment and total interest on a home equity loan against property equity. Enter loan amount and rate for an instant result.
What this tool does
Enter loan amount, rate, and term. The tool shows monthly payment and total interest on a home equity loan.
Enter Values
Formula Used
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Disclaimer
Results are estimates for educational purposes only. They do not constitute financial advice. Consult a qualified professional before making financial decisions.
40,000 home equity loan at 7% over 10 years = 465/month. Home equity loans are secured against the home, so rates are lower than unsecured credit but still higher than first mortgages. Typical rates 1-3% above first mortgage. Use for major one-off costs — not general spending.
Quick example
With loan amount of 40,000 and annual rate of 7% (plus term of 10), the result is 464.43. Change any figure and watch the output shift — it's often more useful to see the pattern than to memorise the formula.
Which inputs matter most
You enter Loan Amount, Annual Rate, and Term. Not every input has equal weight. Flip one at a time toward extreme values to feel which ones move the needle most for your situation.
What's happening under the hood
Standard amortisation formula. The formula is listed in full below. If the number looks off, you can retrace the calculation by hand — that's the point of showing the working.
Reading the output honestly
The payoff date assumes every payment lands on time and at the amount you entered. In reality, months with unexpected expenses happen. Treat the figure as the best-case timeline and add a buffer for life if you want a realistic target.
What this doesn't capture
Real payoff journeys include missed payments, fee changes, balance transfers, and promotional rates that reset. The calculation assumes a steady plan; reality is rarely that clean. Use the figure as the best-case plan against which actual progress gets measured.
Where to go next
This calculation rarely sits alone in a planning exercise. If you're running these numbers, you'll probably also want the home equity calculator, the mortgage calculator, and the auto loan comparison calculator — each one answers a different question in the same territory. Treating them as a set rather than in isolation usually produces a more honest picture.
Home equity loan produces a monthly payment based on the inputs provided.
Inputs
This example uses typical values for illustration. Adjust the inputs above to match a specific situation and see how the result changes.
Sources & Methodology
Methodology
Standard amortisation formula.
References
Frequently Asked Questions
Home equity loan vs HELOC?
What happens if I default?
Tax-deductible interest?
Better than personal loan?
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