SettingsSettings for this calculationUS
Current market value.
Use a realistic figure, not the optimistic one. The lender will instruct their own valuation and will lend against that — and a valuation below expectation is the most common reason an equity release comes up short.
What you still owe on the first charge.
The balance on the main mortgage, which sits ahead of this borrowing in priority. It is the figure that decides how much equity is left: the lender works to a combined loan-to-value across both charges, so overstating what you owe understates what you can borrow and understating it produces an offer that will not survive the valuation.
The total borrowing the lender allows against the value.
Combined loan-to-value counts the existing mortgage plus the new borrowing. 80-85% is typical; a lender offering more is usually pricing that risk into the rate.
Rate on the equity loan.
The rate on the second charge, which is normally higher than the first-charge mortgage rate — the lender is behind another lender in a sale and prices that. Do not copy the main mortgage's rate across. If the offer is a drawdown facility rather than a lump sum, the rate may apply only to what is drawn, and this calculation assumes the whole amount is outstanding from the start.
Repayment term.
The term of this loan, which is often shorter than the mortgage behind it and does not have to match it. A short term on a second charge raises the monthly payment sharply, and the two payments run together — the test that matters is both at once against income, not this one alone.
Equity available to borrow
$120,000
Figures that depend on a rate wait for yours — this page does not assume one.
- Total equity in the property
- $180,000
- Maximum total borrowing at the stated CLTV
- $340,000
- Current loan-to-value
- 55 %
They open the calculator with your figures already in it
Home Equity Loan Calculator: 120,000 currency — shown in imperial, US market. The link sets both, so the result they see is the one on your screen.
Show calculation logicHide calculation logic
How this was calculated
Formula source(s)
- Combined loan-to-value limits of 80-85% are typical for home equity lending; the limit is a user input here because it varies by lender and market
- Repayment uses the standard amortisation formula
Inputs used
- Property value
- 400000
- Outstanding mortgage
- 220000
- Maximum combined LTV (%)
- 85
- Interest rate (%)
- Term (years)
- 15
Intermediate steps
- Total equity in the property
- $180,000
- Maximum total borrowing at the stated CLTV
- $340,000
- Current loan-to-value
- 55 %
What this calculation does not cover
- Total equity and borrowable equity are different figures — the lender's CLTV cap leaves a buffer you cannot access.
- Affordability is assessed separately. Having the equity does not mean the income supports the payment.
- The loan is secured on your home. Failure to keep up repayments puts the property at risk.
Computed in your browser — nothing you enter is uploaded. Presented in US customary units and US trade terminology. Where a formula follows a published standard, that standard and its edition are cited beside it on this page; where none governs, the page says so. Local amendments override model codes — verify against the code in force where you build.
Sources checked 2026-08-26 · in the site-wide review of 2026-09-06 · v1.0.0
Regulatory standards & verification citations2
- Combined loan-to-value limits of 80-85% are typical for home equity lending; the limit is a user input here because it varies by lender and market
- Repayment uses the standard amortisation formula
Cite this page
Your workspace
Most jobs need more than one number. Add the calculators you need next and they open right here, underneath this one — your figures stay on screen and nothing is lost to a page change.