HELOC Calculator - Home Equity Line of Credit Payment Calculator

Home Value ($)

Current Mortgage Balance ($)

Max LTV (%)

Typically 80-85% combined LTV

Draw Amount ($)

Max available: $70,000

Interest Rate (%)

Variable rate (HELOC rates change)

Draw Period (years)

Repayment Period (years)

Payment During Draw Period

Most HELOCs allow interest-only during draw

Disclaimer

Results are estimates for informational purposes only. Actual loan terms, rates, and payments may vary based on your credit score, income, and other factors. Please consult a licensed financial advisor or mortgage professional before making any financial decisions.

What is HELOC Calculator?

A Home Equity Line of Credit (HELOC) is a revolving credit line secured by your home equity. Unlike a home equity loan (fixed lump sum), a HELOC lets you borrow, repay, and borrow again during a draw period. HELOCs typically have variable interest rates tied to the prime rate, with a 5-10 year draw period followed by a 10-20 year repayment period.

How to Use

Enter your current home value - use a recent appraisal or market estimate.
Input your remaining mortgage balance.
Set the maximum LTV percentage (typically 80-85% for combined loan-to-value).
Enter the amount you want to draw from your HELOC.
Set the current interest rate (HELOC rates are variable, usually Prime + margin).
Choose draw and repayment periods based on your lender's offerings.
Select interest-only or principal+interest payments during the draw period.
Click Calculate to see your credit limit, payments, and timeline.

Why Use This Tool?

Understand your maximum available credit based on home equity

Compare interest-only vs principal+interest payment strategies

See how payments change between draw and repayment periods

Calculate total interest costs over the full HELOC term

Plan for rate changes (HELOC rates are variable)

Compare HELOC with cash-out refinance or home equity loan

Tips & Best Practices

HELOC rates are variable - budget for potential rate increases
Interest-only payments keep costs low during draw but increase later
80% combined LTV is typical; some lenders allow up to 85-90%
HELOCs work best for ongoing expenses (renovations, education)
Home equity loans are better for one-time large expenses
Compare HELOC, cash-out refinance, and home equity loan rates
Some HELOCs offer rate locks or conversion to fixed-rate options
Closing costs are typically lower than cash-out refinance

Frequently Asked Questions

What is the difference between HELOC and home equity loan?

A HELOC is a revolving credit line (like a credit card) with variable rates and a draw period. A home equity loan is a fixed lump sum with fixed rates and immediate repayment. HELOCs offer flexibility; home equity loans offer predictability. Choose HELOC for ongoing needs; home equity loan for one-time expenses.

How is my HELOC credit limit determined?

Your credit limit is based on your equity and the lender's maximum combined LTV. Formula: Home Value × Max LTV - Current Mortgage = Maximum Credit Limit. Example: $400,000 home × 80% - $250,000 mortgage = $70,000 available. Lenders also consider credit score and income.

Why are HELOC rates variable?

HELOC rates are typically tied to the prime rate (Prime + margin). When the Federal Reserve changes rates, your HELOC rate adjusts. If Prime is 8.5% and your margin is 0.5%, your rate is 9%. Rates can increase significantly over time, so budget for higher payments.

What happens after the draw period ends?

When the draw period ends, you can no longer borrow from the HELOC. You enter the repayment period where you must pay principal and interest over 10-20 years. Payments often increase significantly if you made interest-only payments during draw.

Can I pay off a HELOC early?

Yes, you can repay your HELOC balance at any time during the draw period, then re-borrow up to your credit limit. Many borrowers pay more than minimum to reduce principal. Check for early closure fees or prepayment penalties with your lender.

What are typical HELOC closing costs?

HELOC closing costs are lower than mortgages: typically $0-500 for appraisal, $200-500 for title work, and possible annual fees ($50-100). Many lenders offer no-closing-cost HELOCs with slightly higher rates. Compare total costs when choosing a lender.