HELOC calculator
How much you can borrow against your home, and the payments while drawing and repaying.
About this calculator
This HELOC calculator works out how big a home equity line of credit you could get, from your home's value, your mortgage balance and the lender's loan-to-value limit.
It also shows the interest-only payment during the draw period, the payment once repayment starts and the total interest.
How it works
The credit line is the home value × the lender’s maximum loan-to-value, less what you still owe on the mortgage. During the draw period you usually pay interest only; after it, the balance is repaid in level monthly payments.
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Worked example
- Home value: $450,000
- Mortgage balance: $250,000
- Lender’s maximum loan-to-value: 85%
- Amount you plan to borrow: $50,000
- Interest rate: 8.5% a year
- Draw period: 10 years
- Repayment period: 20 years
Credit line available: $132,500 (at the lender’s maximum loan-to-value)
Common questions
How much can I borrow with a HELOC?
Many lenders allow up to 80% to 90% of your home's value, less what you owe on the mortgage. On a $450,000 home with $250,000 owed, an 85% limit allows a $132,500 line.
What is the draw period?
The time, often 10 years, when you can borrow from the line and may pay only interest. After it, you repay the balance with interest, often over 10 to 20 years.
Is a HELOC rate fixed?
Usually not. Most HELOCs have a variable rate tied to an index such as the prime rate, so payments can rise. Some lenders let you fix the rate on part of the balance.
Sources and further reading
The story behind it
Where the idea came from: Home equity lines of credit took off in the United States after the Tax Reform Act of 1986 ended the tax deduction for interest on most consumer loans but kept it for loans secured by a home.
Many borrowers moved card and car debt onto their homes. A HELOC works like a credit card secured by your house: flexible and usually cheaper, but missed payments can cost you the home.
Why you can trust this calculator
- It runs in your browser. Nothing you type into it is sent anywhere.
- The method is explained on this page, so you can check it yourself.
- Free to use, with no sign-up.
- Results are estimates, not financial advice.
- Spotted a mistake? Tell us and we'll look into it.
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