HELOC Calculator
Estimate your home equity line of credit limit and monthly payments. Calculate available HELOC funds based on your home value and mortgage balance.
Property & Mortgage Details
Enter your home value, mortgage balance, and desired HELOC terms.
HELOC Results
Max HELOC Limit
$0
Based on combined LTV
Available Credit
$0
After existing mortgage
Interest-Only Monthly Payment
$0
During draw period
Repayment Monthly Payment
$0
During repayment period
Equity Position
$0
Current home equity
Combined Loan Balance
$0
Mortgage plus HELOC
How HELOC Calculator Works
Calculate your HELOC borrowing limit and monthly payments. Estimate home equity line of credit amounts based on LTV and current mortgage balance.
Core Use Case Scenario
Home buyers, real estate investors, and financial planners use this calculator to model monthly payments, amortization schedules, and total interest costs across different loan terms and rates.
Troubleshooting & Edge-Case Failure Points
- PMI drops automatically once equity crosses 20%.
- Extra payments apply to principal only.
- Tax/insurance assumptions vary by location.
- Keep rates as yearly percentages and fees as monthly amounts.
Step-by-Step Instructions
- Enter home price, down payment, interest rate, and loan term.
- Adjust property tax, insurance, HOA fees, and PMI.
- Add extra payments to see accelerated payoff.
- Review monthly breakdown, amortization chart, and savings.
Related Web Utilities (Silo Hub)
Informative Guides & Helper Articles
HELOC Interest Rates Explained: Fixed vs Variable, Caps & Floors
Understand HELOC interest rates: how variable rates work, fixed-rate options, rate caps, floors, and how the prime rate affects your payments. Complete guide.
Read Article →HELOC vs Home Equity Loan: Which Is Right for You?
Compare HELOCs and home equity loans side by side. Learn the key differences in rates, payments, flexibility, and repayment to choose the best option for your finances.
Read Article →How to Calculate HELOC Payments: A Step-by-Step Guide
Learn how to calculate HELOC payments including interest-only and principal-and-interest amounts. Step-by-step formulas and examples for draw and repayment periods.
Read Article →Using a HELOC for Home Improvements: Guide & Tax Tips
Learn how to use a HELOC to finance home improvements. Get guidance on budgeting, draw timing, tax-deductible interest, and which renovations add the most value.
Read Article →How to Use the HELOC Estimator
- Enter your home's value and current mortgage balance — lenders lend against combined loan-to-value (CLTV), typically up to 80%–85%.
- Set the HELOC amount and rate. HELOC rates are variable, tied to the prime rate — model both today's rate and +2% as a stress test.
- Compare draw vs. repayment: during the draw period (usually 10 years) most lenders allow interest-only payments; the repayment period (10–20 years) amortizes the balance.
- Read your estimated line size and payments for both phases.
How the Math Works
Worked example: a $400,000 home with a $220,000 mortgage supports up to $400,000 × 0.85 − $220,000 = $120,000 of credit line. Drawing $100,000 at 9% APR costs $750/month interest-only during the draw period. When repayment begins at 9% over 20 years, the payment jumps to about $900/month of full amortization — the jump is what borrowers must plan for. Interest-only payments during draw use: balance × (APR ÷ 12).
HELOC vs. Cash-Out Refinance
| Factor | HELOC | Cash-out refinance |
|---|---|---|
| Rate type | Variable | Fixed |
| You borrow | As needed, pay interest on what you use | Lump sum, interest on all of it |
| Existing first mortgage | Untouched | Replaced entirely |
| Closing costs | Often $0–$500 | 2%–5% of the loan |
Rule of thumb: need flexible, intermittent access (renovations, tuition) → HELOC. Need a large one-time amount at a fixed rate → cash-out refi. Model the refi path in our refinance calculator.
HELOC FAQ
How much HELOC can I get?
Typically up to 80%-85% combined loan-to-value: home value times 0.85, minus your current mortgage balance. A $400k home with a $220k mortgage supports about $120k.
What happens when the draw period ends?
The line converts to repayment: you can no longer draw, and payments jump from interest-only to fully amortized principal + interest — often 20%-90% higher. Plan for the jump before it arrives.
Are HELOC rates fixed?
No — HELOCs are variable, usually prime plus a margin, and can rise with the market. Some lenders allow fixing a portion; ask about rate-lock options on drawn balances.
Does a HELOC hurt my credit score?
Applying adds a hard inquiry; a large drawn balance relative to the line can lower scores, similar to maxing a credit card. Keep utilization under ~40% of the line where possible.
Is the interest tax-deductible?
Potentially — when the funds are used to buy, build, or substantially improve the home securing the loan. Consolidating credit cards or paying tuition generally does not qualify. Confirm with a tax professional.