There are various reasons a borrower may need finance, it could be for education, home renovation, automobile loan, health loan or any other expense. For these kinds of loans a home equity line calculator is the best option to help determine the eligibility for a loan. The loan is based on the home value. In case the value of the house is high then the borrower will be entitled to a higher loan. Point to be kept in mind before taking up the loan is to see if the house has any previous loan balance. If there is loan is it a first or second mortgage and if there is any debt on the house.The calculator is an excel workbook with different types of computing options. The calculator helps to calculate the amount to be borrowed, the monthly payment and within a certain period what will be the equity value.The equity credit permits you to get a big amount but it also restricts you to a certain limit only. The home equity line calculator helps to find out your eligibility, the entitled amount which is based on the home value percentage. This amount does not consider any current loans connected with the house.Before availing a loan it is very essential to find out your line of credit and this information can be obtained from banks and financial institutions. Banks and financial institutions take into consideration the current financial position of the borrower, his current outstanding, source of income, repayment capacity and his financial background.Sum of all the assets less the all the liabilities is the equity. The current value of the house is given. The loan due is then deducted from the actual value. The amount then obtained is the borrower’s equity. Line of credit means the full capacity a person is eligible to borrow on his own with any extra authorization.The (CLTV) that is the combined loan to value is the amount that the lender is willing to lend, that is why it is essential to know the maximum value a borrower can take as loan. This loan is combined with any existing loans. The home equity line calculator shows the payments to be made monthly, the interest amount, tax benefits and other saving costs. By displaying this, the calculator enables the borrower to finalize on a cost effective loan which he stands in need of.