HELOC Calculator — How Much Home Equity Can You Borrow?
Calculate your maximum HELOC based on home value, mortgage balance, and CLTV limit (80-90%). See your tapable equity, interest-only payment, and a complete equity breakdown chart.
HELOC Calculator
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Lender Maximum CLTV
80%
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Home Equity Breakdown
Loan-to-Value Position
Excellent equity position — strong HELOC candidate
Current LTV is 58.2% — lender limit is 80% CLTV.
Draw Amount & Payment Summary
Your Draw
$50,000.00
Available Line
$120,000.00
Monthly Interest
$364.58
Annual Interest
$4,375.00
HELOC Rate
8.75%
Rate Context — Why Use Your Equity?
Your HELOC Rate
8.75%
Variable rate tied to Prime Rate
Why use your equity? Savings per $10,000 borrowed:
You save $127.08/month per $10,000 vs. credit card average.On your $50,000.00 draw: save $635.42/month vs. this alternative.
You save $27.08/month per $10,000 vs. personal loan average.On your $50,000.00 draw: save $135.42/month vs. this alternative.
Draw vs. Repayment Phase Payments
HELOC Phases — Draw vs. Repayment
Draw Period (Yrs 1–10)
$364.58/mo
Interest-only
Repayment Phase (Yrs 11–30)
$441.86/mo
20-yr fully amortizing
After the 10-year draw period, your HELOC balance of $50,000.00 converts to a 20-year repayment loan. Your payment jumps from $364.58/mo (interest only) to $441.86/mo (fully amortizing). Plan ahead for this payment increase.
Important Risk Disclosure
A HELOC is secured by your home. Failure to repay puts your home at risk of foreclosure. HELOCs use variable rates — if the Prime Rate rises, your payment rises too. Borrow only what you can service even if rates increase by 2–3%.
The Formula
A HELOC allows you to borrow against the equity you have built in your home. The maximum credit line is determined by multiplying your home value by the lender's maximum CLTV (Combined Loan-to-Value) ratio, then subtracting your existing mortgage balance. The result is your available borrowing capacity — the equity you can actually access beyond what your lender requires you to keep as a cushion.
Variable Definitions
Estimated Home Value
The current market value of your home, based on appraisal or automated valuation model (AVM) from services like Zillow or Redfin.
Existing Mortgage Balance
The outstanding principal remaining on your first mortgage. This is subtracted from the maximum allowed debt to determine the available HELOC amount.
Combined Loan-to-Value Ratio
The maximum percentage of your home's value that lenders allow as total debt (first mortgage + HELOC). Most lenders use 80%, though some go up to 90%. A higher CLTV means more borrowing power but more risk.
Maximum Credit Line
The maximum amount you can borrow calculated as (Home Value × CLTV%) − Mortgage Balance. This is your tapable equity — the portion of your equity the lender will let you access.
Planned Draw Amount
The specific amount you intend to borrow from your HELOC. Entering this gives you a precise monthly interest-only payment instead of a payment on the full line.
How to Use This Calculator
- 1
Enter your estimated home value based on appraisal or market estimate (Zillow, Redfin, or professional appraisal).
- 2
Input your current mortgage balance from your latest statement.
- 3
Select the lender's maximum CLTV limit (typically 80-90%). Most conventional lenders cap at 80%.
- 4
Enter the HELOC interest rate quoted by your lender — typically Prime Rate plus a margin.
- 5
Optionally enter the specific amount you plan to draw to see your exact interest-only payment.
- 6
Review your available equity, estimated line amount, and maximum borrowing capacity.
Common Applications
- Calculate your available home equity and maximum HELOC credit line based on your home value and current mortgage balance.
- Estimate the interest-only monthly payment during the draw period for home improvement projects or debt consolidation.
- Compare HELOC borrowing against other financing options by understanding how variable rates affect long-term repayment costs.
A HELOC lets you borrow against home equity up to the lender CLTV limit, typically 80% of the home value minus the existing mortgage balance's CLTV limit, with the remaining equity kept as a cushion for the lender
Understanding the Concept
A HELOC (Home EquityThe difference between the market value of an asset and the amount owed on it. For a home, equity = home value minus mortgage balance. Line of Credit) works like a credit card secured by your home equity. During the draw period (typically 10 years), you borrow and repay as needed, paying interest-only on what you have drawn. After the draw period, the balance converts to a fully-amortizing loan typically over 20 years. HELOCs use variable rates tied to the Prime Rate, so payments change as rates move. For example, if the Prime Rate is 8.50% and your lender offers Prime + 1.00%, your rate is 9.50%. When the Federal Reserve raises or lowers rates, your HELOC rate follows. HELOCs are commonly used for home improvements, debt consolidation, major purchases, or as an emergency fund. The interest paid on a HELOC may be tax-deductible if the funds are used to buy, build, or substantially improve your home — consult a tax advisor for your specific situation. The draw period structure makes HELOCs particularly suitable for ongoing projects where you need flexibility to borrow as work progresses rather than taking a lump sum all at once.
Frequently Asked Questions
Sources & References
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