HELOC Calculator
Use this free HELOC calculator to estimate your potential home equity line of credit, available borrowing amount, loan-to-value ratio, monthly interest-only payment, and estimated repayment costs.
1. Enter Your Home Information
2. HELOC Payment Estimate
3. Repayment Estimate
Payment Estimates
What Is a HELOC?
A home equity line of credit, commonly called a HELOC, is a revolving credit line secured against your home. It can allow an eligible homeowner to borrow against available home equity, generally up to a lender-defined credit limit.
Unlike a traditional home equity loan, a HELOC can provide a credit line that may allow multiple draws during the draw period, subject to the terms of the account.
How Does a HELOC Calculator Work?
This calculator estimates potential HELOC borrowing capacity using your home’s estimated value, existing home-secured debt and a selected maximum combined loan-to-value ratio.
How Much Can I Borrow With a HELOC?
Your potential HELOC limit depends on your home’s value, existing mortgage balance, other home-secured debt and the lender’s maximum combined loan-to-value requirement. Your income, credit history, debt-to-income ratio, property type and other factors may also affect eligibility.
The result shown above is therefore an estimate rather than a guaranteed credit limit.
What Is Combined Loan-to-Value Ratio?
Combined loan-to-value, or CLTV, compares the total debt secured by your home with the home’s value. It can include your primary mortgage, existing HELOC balances and other loans secured against the property.
HELOC Interest-Only Payment
During a draw period, a HELOC may allow payments based on the amount borrowed and the applicable interest rate. The interest-only estimate in this calculator uses the planned draw amount.
HELOC Principal and Interest Payment
The principal-and-interest estimate uses a standard amortization formula based on the planned draw, entered interest rate and selected repayment period. Actual HELOC payment structures can differ.
HELOCs for Home Improvements
Homeowners may consider a HELOC when planning larger home projects such as kitchen remodeling, bathroom renovations, room additions, new flooring, roofing, landscaping or other improvements.
Before borrowing, compare the expected project cost with your available credit and consider interest-rate changes, fees and the risk of using your home as collateral.
What Can Affect Your HELOC Limit?
- Current market value of your home
- Outstanding mortgage balance
- Existing HELOC balances
- Other home-secured debt
- Lender maximum CLTV requirements
- Credit history
- Income and debt-to-income ratio
- Property type and occupancy
- Home appraisal or valuation
- Interest rates and lender policies
HELOC vs. Home Equity Loan
A HELOC generally provides a revolving credit line, while a home equity loan typically provides a lump-sum amount. The right choice depends on factors such as the project, borrowing amount, repayment preferences, interest-rate structure and lender terms.
Frequently Asked Questions
How much can I borrow with a HELOC?
The amount you may be able to borrow depends on your home value, existing home-secured debt, lender CLTV limits and your financial qualifications. Use the calculator above for an initial estimate.
How do I calculate my HELOC amount?
A basic estimate can be made by multiplying your home’s value by the maximum combined LTV allowed and subtracting existing home-secured debt. The result represents an estimated borrowing capacity before other lender requirements.
What is the formula for a HELOC?
A basic borrowing-capacity formula is: Home Value × Maximum CLTV − Existing Home-Secured Debt. Actual lender calculations may include additional requirements.
How much equity do I need for a HELOC?
There is no single equity requirement that applies to every HELOC. Lenders can set different CLTV limits and qualification requirements. The calculator lets you test several CLTV assumptions.
Does a HELOC increase my mortgage?
A HELOC is generally separate from your primary mortgage, but it adds additional debt secured against your home and therefore increases your total home-secured debt.
What is the difference between a HELOC and a home equity loan?
A HELOC generally provides revolving access to a credit line, while a home equity loan generally provides a lump-sum loan that is repaid over a specified period.
Can I use a HELOC for home renovations?
Some homeowners use HELOC funds for renovation and improvement projects. The suitability of borrowing depends on your financial circumstances, project cost, lender terms and ability to repay the debt.
Is the HELOC interest rate fixed?
Many HELOCs use variable interest rates, although the exact structure depends on the lender and product. Because rates can change, actual payments may differ significantly from an initial estimate.
Does a HELOC affect my home’s equity?
Borrowing through a HELOC increases debt secured against your home. Because home equity is generally calculated as home value minus home-secured debt, borrowing can reduce your equity position.
Is this HELOC calculator accurate?
The calculator accurately performs the mathematical calculations using the information entered, but it cannot determine lender eligibility, your official property value or the exact terms of a HELOC.