HELOC Calculator
Estimate your Home Equity Line of Credit borrowing power and costs with our free HELOC calculator. Enter your home value, mortgage balance, and desired amount to see interest-only payments, full repayment amounts, and total interest costs.
A Home Equity Line of Credit (HELOC) lets you borrow against the equity in your home. Most lenders allow a combined loan-to-value (CLTV) ratio of up to 85%, meaning your mortgage balance plus HELOC cannot exceed 85% of your home's value. For a $500,000 home with a $300,000 mortgage, the maximum HELOC would be $125,000 ($500,000 x 0.85 - $300,000).
HELOCs have two phases: the draw period (typically 5-10 years) and the repayment period (typically 10-20 years). During the draw period, you can borrow up to your limit and make interest-only payments. During the repayment period, you can no longer draw funds and must repay the principal plus interest, resulting in significantly higher monthly payments. This payment jump catches many borrowers off guard.
HELOC interest rates are typically variable, tied to the prime rate. This means your payments can increase if interest rates rise. Some lenders offer fixed-rate conversion options for a portion of the balance. Common uses for HELOCs include home improvements (which can increase home value), debt consolidation (replacing higher-rate debt), and emergency funds. Be cautious: since your home is collateral, defaulting on a HELOC can lead to foreclosure.