🏠 Finance Tool

HELOCCalculator

Calculate your available home equity, monthly interest payments, and total borrowing costs — instantly and for free.

✦ 100% Free✦ No Sign-up✦ Instant Results✦ Draw & Repayment
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HELOC Calculator

Enter your home details to calculate equity & payments

Property & Equity
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HELOC Terms
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Your HELOC Results

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🏦 What Is a HELOC?

AHome Equity Line of Credit (HELOC)is a revolving credit line secured by your home. Unlike a fixed home equity loan, a HELOC lets you borrow, repay, and borrow again — similar to a credit card — up to your approved limit.

It works in two phases: adraw period(typically 10 years) when you can borrow funds and usually pay interest only, followed by arepayment period(typically 20 years) when the balance is paid off.

📐 How Is the Limit Calculated?

Lenders use yourCombined Loan-to-Value (CLTV)ratio:

  • Home Value × LTV Limit= Maximum total debt
  • Subtract your mortgage balance
  • The result is your maximum HELOC credit line

Example: $400,000 home × 85% LTV = $340,000 − $200,000 mortgage =$140,000 HELOC limit

Most lenders cap the CLTV at 80–90%.

💡 HELOC vs. Home Equity Loan

  • HELOC:Variable rate, flexible draws, interest-only option during draw period
  • Home Equity Loan:Fixed rate, lump sum, fixed monthly payments from day one
  • HELOCs are better for ongoing projects (renovations, education)
  • Home equity loans suit one-time large expenses

⚠️ HELOC Risks to Know

  • Variable rates— payments can rise if rates increase
  • Payment shock— repayment-phase payments can be 2–3× the draw-phase payment
  • Foreclosure risk— your home is collateral
  • Overborrowing— the flexibility can lead to excessive debt
  • Always check your lender's fees (origination, annual, early closure)

Frequently Asked Questions

What credit score do I need for a HELOC?
Most lenders require a minimum credit score of 620, but competitive rates typically require 700+. A higher score gives you access to lower APRs and better terms.
Are HELOC interest payments tax-deductible?
Under current U.S. tax law (post-2017 Tax Cuts and Jobs Act), HELOC interest is deductible only if the funds are used to "buy, build, or substantially improve" the home securing the loan. Interest on funds used for other purposes is no longer deductible. Consult a tax advisor for your specific situation.
Can the lender freeze or reduce my HELOC?
Yes. Lenders can freeze or reduce your credit line if your home value drops significantly, your credit deteriorates, or they decide to exit the HELOC market. This is a key risk during housing downturns — as many homeowners experienced in 2008–2009.
What happens at the end of the draw period?
The HELOC enters the repayment phase. You can no longer draw funds, and you must repay the outstanding balance — both principal and interest — over the repayment term. Monthly payments increase substantially, which is called "payment shock." Plan ahead by saving during the draw period.
How accurate is this calculator?
This calculator provides accurate estimates based on standard HELOC formulas using the inputs you provide. Actual offers from lenders may vary based on your credit profile, lender-specific fees, and changing interest rates. Use these results as a planning guide, not a guaranteed quote.