CALCULATOR TOOLS
HELOC Calculator (Home Equity Line of Credit)
Home equity line of credit you may qualify for, plus interest-only and repayment-period payments.
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A home equity line of credit (HELOC) lets you borrow against the equity in your home, much like a credit card secured by the house. This HELOC calculator estimates how large a credit line you may qualify for, the interest-only payment during the draw period, the higher repayment payment that follows, and how the payment changes if the variable rate moves.
How to Use the HELOC Calculator
- Enter your home's value and what you still owe on your mortgage.
- Choose the lender's maximum combined loan-to-value (CLTV) – most allow 80%–85%, some up to 90%.
- Enter how much you plan to draw, the HELOC rate, and the lengths of the draw and repayment periods (10 and 20 years is common).
How Much Can I Borrow With a HELOC?
HELOC limit = home value × max CLTV − mortgage balance.
Example: a home worth $450,000 with a $250,000 mortgage has $200,000 of equity. At 85% CLTV, total borrowing can reach $382,500, so the line could be up to $132,500. Lenders also check your credit score (often 680+), debt-to-income ratio and income.
HELOC Payments: Draw vs Repayment
During the draw period you can borrow and repay as needed, and many HELOCs require only interest: balance × rate ÷ 12. Drawing $50,000 at 8% means $333.33 a month. When the repayment period starts, you can no longer draw, and the balance is paid off with principal and interest – $50,000 over 20 years at 8% is $418.22 a month. Over 30 years, that adds up to about $90,373 in interest if you only pay the minimum during the draw period.
What If the Rate Changes?
Most HELOC rates are variable: the prime rate plus a margin. When the Federal Reserve raises or cuts rates, your payment follows. For the same $50,000:
| Rate | Interest-only payment | Repayment payment (20 yrs) |
|---|---|---|
| 6% | $250.00 | $358.22 |
| 8% | $333.33 | $418.22 |
| 10% | $416.67 | $482.51 |
Ask whether your HELOC has a rate cap and whether you can lock part of the balance at a fixed rate.
HELOC vs Home Equity Loan vs Cash-Out Refinance
- HELOC: flexible line, variable rate, pay interest only on what you use. Good for projects paid over time.
- Home equity loan: a lump sum at a fixed rate with fixed payments – estimate it with the loan calculator.
- Cash-out refinance: replaces your whole mortgage. Usually only worth it if the new rate isn't higher than your current one – see the refinance calculator.
Your home secures a HELOC, so missing payments can lead to foreclosure. Interest may be tax-deductible only when the money is used to buy, build or substantially improve the home.
Sources
- CFPB – What you should know about home equity lines of credit
- FTC – Home equity loans and home equity lines of credit
- IRS – Publication 936, Home mortgage interest deduction
Last reviewed: October 2026 by the ShrinkBee team. Results are estimates for planning and education, not financial, tax, legal or medical advice.
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