HELOC Calculator
Estimate your available home equity line of credit and monthly payment options.
Before you calculate
The 85% combined loan-to-value ceiling is a model assumption. Actual credit limits, variable rates, draw rules and fees depend on the lender.
How a HELOC Works
A Home Equity Line of Credit (HELOC) lets you borrow against your home equity up to a set limit, typically 85% of Combined Loan-to-Value (CLTV). Like a credit card, you draw funds as needed during the draw period (usually 10 years), paying only interest. Then the repayment period begins, where principal and interest are fully amortized.
Max HELOC = Home Value × 85% − Mortgage Balance | Draw Payment = Balance × (Rate / 12) | Repayment = Balance × [r(1+r)^n] / [(1+r)^n − 1]Example Scenarios
Home Improvement
Using a HELOC for renovations can add home value. A kitchen remodel costing $30,000 at 8.5% with a 10-year repayment costs ~$372/month and ~$14,600 in total interest — often cheaper than a personal loan.
Debt Consolidation
Rolling high-interest credit card debt into a HELOC at 8.5% vs. 24% APR can save thousands in interest. Caution: your home secures the debt, so failure to pay risks foreclosure.
Methodology & Assumptions
Available equity assumes lender maximum of 85% CLTV. Draw period payment is interest-only. Repayment balance is the full withdrawal amount amortized over the selected term.
Sources & calculation notes
Maintained by MoneyCalc. Results are estimates based on the inputs and assumptions shown, not personalized financial advice or a lender quote. Default rates are examples unless a specific tax year or official table is identified.
References explain the underlying concepts or rules. They do not endorse or independently certify this implementation.
Calculations run in your browser. Some tools retain settings on this device. Displayed rounding can produce small differences from a statement or contract.