HELOC Calculator

Estimate how much you can borrow with a Home Equity Line of Credit (HELOC). Lenders typically allow you to borrow up to 85% of your home's value minus your mortgage balance. Enter your details to see your maximum credit line, available credit after a draw, and the monthly interest-only payment during the draw period.

Home Equity Line of Credit Calculator

How HELOC Limits Are Calculated

Lenders use the Combined Loan-to-Value (CLTV) ratio to determine your HELOC limit:

Max HELOC = (Home Value × LTV%) − Mortgage Balance

During the draw period (typically 10 years), you only pay interest on the amount drawn. During the repayment period (typically 20 years), you repay principal and interest on the outstanding balance.

Home ValueMortgage BalanceMax 85% HELOCTotal Equity
$300,000$150,000$105,000$150,000
$400,000$200,000$140,000$200,000
$500,000$250,000$175,000$250,000
$600,000$300,000$210,000$300,000

Frequently Asked Questions

How is a HELOC different from a home equity loan?+
A HELOC is a revolving line of credit — you draw what you need, repay it, and draw again during the draw period, similar to a credit card. Interest rates are usually variable. A home equity loan gives you a lump sum upfront with a fixed interest rate and fixed monthly payments. HELOCs are better for ongoing expenses (renovations, tuition), while home equity loans suit one-time large purchases.
Are HELOC interest payments tax-deductible?+
Under current IRS rules (post-2017 Tax Cuts and Jobs Act), HELOC interest is only deductible if the funds are used to "buy, build, or substantially improve" the home securing the loan. Interest used for debt consolidation, vacations, or other purposes is generally not deductible. Consult a tax professional for your specific situation, as rules can change and individual circumstances vary.

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