HELOC Calculator
Estimate how much a home equity line of credit could offer and the payments in the draw and repayment periods.
About the HELOC Calculator
Enter your home's value, what you owe, the lender's maximum combined loan-to-value, how much you'll draw, the rate and the lengths of the draw and repayment periods. The calculator gives the credit line available and the payments in each period.
A HELOC is a revolving credit line secured by your home. During the draw period (often 10 years) many HELOCs need only interest payments; then the balance is repaid over a set term, raising the payment.
The formula
Limit = value × max CLTV − mortgage; draw payment = balance × rate ÷ 12
Worked example
A $450,000 home with $250,000 owed, 85% CLTV
- Credit line: 450,000 × 85% − 250,000 = $132,500
- Drawing $50,000 at 8.5%: $354.17 a month interest-only
- Then $433.91 a month for 20 years to repay it
Things to keep in mind
- HELOC rates usually float, so payments can change; this uses one rate throughout.
Questions people ask
Is HELOC interest deductible?
In the US, only if the money is used to buy, build or substantially improve the home securing it.
What's the risk?
Your home is collateral; rates usually float with the prime rate.
HELOC or home equity loan?
A HELOC suits costs spread over time; a fixed home equity loan suits one lump sum.
Sources
The rules and rates this calculator uses come from the official pages below. Its results are estimates, not an official determination, and rules change, so check the latest figures there before you act on them.