HELOC Calculator: Estimate Your Home Equity Line of Credit and Payments

Estimate your borrowing power in seconds: the calculator shows that homeowners can usually access up to 85 % of their home’s value minus existing liens (CFPB, 2023). Enter property value, mortgage balance, and rate; the tool instantly returns maximum line size, monthly draw-period interest, amortized repayment, and lifetime cost—helping you budget renovations or consolidations with confidence.

HELOC Calculator

Enter the estimated market value of your home.

Enter the remaining balance on your primary mortgage.

Select the maximum Combined Loan-to-Value ratio allowed by your lender.

Enter the amount you wish to borrow, or leave blank for maximum available amount.

Enter the annual interest rate for your HELOC.

Choose between a fixed or variable interest rate.

Select the duration of the draw period.

Select the duration of the repayment period.

Enter any additional fees associated with the HELOC (e.g., application fees, annual fees).

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How to use the tool

1. Current Home Value

Type your property’s market price. Examples: $620,000 (suburban three-bed) or $475,000 (urban condo).

2. Outstanding Mortgage Balance

Enter what you still owe. Samples: $410,000 or $255,000.

3. Lender’s Maximum CLTV (%)

Select 75 %, 80 %, 85 % or 90 %. Example picks: 85 % or 75 %.

4. Desired HELOC Amount (optional)

Leave blank for the maximum, or request a figure—e.g., $60,000 or $95,000.

5. Annual Interest Rate (%)

Input the quoted rate. Try 6.25 % (fixed) or 5.10 % (variable).

6. Draw and Repayment Periods

Pick draw: 5 years or 10 years; repayment: 10 years, 15 years, or 20 years.

7. Additional Fees (optional)

Add setup or annual fees such as $750 or $0.

Formulas used

  • $$\text{Available Equity}= \text{Home Value}-\text{Mortgage Balance}$$
  • $$\text{Max HELOC}=(\text{Home Value} \times \text{CLTV})-\text{Mortgage Balance}$$
  • Interest-only payment (draw): $$\text{Monthly}= rac{\text{HELOC}\times r}{12}$$
  • Amortized payment (repay): $$\text{Monthly}=P\; rac{r(1+r)^n}{(1+r)^n-1}$$
    P=principal, r=monthly rate, n=number of months.
  • Total interest: $$\text{Draw Interest}+(\text{Repay Payment}\times n-P)$$

Example calculation (Scenario A)

  • Home Value: $620,000
  • Mortgage: $410,000
  • CLTV: 85 %
  • Rate: 6.25 % fixed
  • Draw: 5 yr • Repay: 10 yr • Fees: $750

Step-by-step

  • Available Equity = 620,000 – 410,000 = $210,000
  • Max HELOC = (620,000 × 0.85) – 410,000 = $117,000
  • Monthly draw interest = 117,000 × 0.0625 / 12 = $609.38
  • Monthly repay payment: r = 0.0625 / 12 = 0.005208; n = 120
    (1+r)n ≈ 1.865; Payment = 117,000 × 0.005208 × 1.865 / 0.865 ≈ $1,313
  • Draw interest = 609.38 × 60 = $36,564
  • Repay interest = 1,313 × 120 – 117,000 = $40,512
  • Total interest = 36,564 + 40,512 = $77,076
  • Total cost = 77,076 + 750 = $77,826

Example calculation (Scenario B)

  • Home Value: $475,000 • Mortgage: $255,000 • CLTV: 75 %
  • Max HELOC = (475,000 × 0.75) – 255,000 = $101,250
  • Repeat the same steps with your chosen rate and terms to see payments.

Quick-Facts

  • Typical CLTV cap: 85 % for prime borrowers (CFPB, 2023).
  • Standard draw period: 10 years (Fannie Mae Selling Guide, 2022).
  • Average HELOC rate Q1 2024: 8.6 % APR (Bankrate, 2024).
  • Interest may be tax-deductible when funds improve the home (IRS Pub 936, 2023).
  • Median origination fee: 1 % of credit line (Federal Reserve Survey, 2022).

FAQ

What is a HELOC?

A HELOC is a revolving credit line secured by your home equity, similar to a credit card but with lower rates (CFPB, 2023).

How does the calculator find my maximum line?

It multiplies home value by your lender’s CLTV limit, then subtracts outstanding liens, revealing how much you can borrow.

Why separate draw and repayment periods?

During the draw you pay interest only; once it ends you repay principal plus interest under an amortized schedule (Fannie Mae, 2022).

Can I choose a fixed rate?

Many lenders offer fixed-rate options, locking payments and shielding you from rate hikes (Freddie Mac Mortgage Market Survey, 2024).

Are HELOC rates tax-deductible?

Interest is deductible when funds substantially improve the home, subject to the $750,000 mortgage interest cap (IRS Pub 936, 2023).

What fees should I expect?

Expect appraisal, origination and annual fees totaling 1–2 % of the credit line (Federal Reserve, 2022).

How quickly can I access funds?

After closing, most lenders provide access within three business days, post-rescission period (Regulation Z, 2023).

Will a HELOC affect my credit score?

Yes; utilization and payment history report to bureaus, influencing scores just like other revolving accounts (Experian Learning Center, 2023).

Important Disclaimer

The calculations, results, and content provided by our tools are not guaranteed to be accurate, complete, or reliable. Users are responsible for verifying and interpreting the results. Our content and tools may contain errors, biases, or inconsistencies. We reserve the right to save inputs and outputs from our tools for the purposes of error debugging, bias identification, and performance improvement. External companies providing AI models used in our tools may also save and process data in accordance with their own policies. By using our tools, you consent to this data collection and processing. We reserve the right to limit the usage of our tools based on current usability factors. By using our tools, you acknowledge that you have read, understood, and agreed to this disclaimer. You accept the inherent risks and limitations associated with the use of our tools and services.

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Discover the ins and outs of Home Equity Lines of Credit (HELOCs) with this comprehensive infographic, showcasing key features, calculations, and benefits.

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