Finance category
Mortgage, loan, investing, tax, and money calculators.
HELOC Calculator
Estimate the size of a home equity line of credit, what the interest-only draw payment looks like, and how the amortizing repayment payment compares once the draw period ends.
Available line
$190,000.00
Interest-only payment
$385.42
During the draw period
Repayment payment
$514.60
After the draw period ends
Total interest
$88,877.31
Equity and line sizing
Actual draw
$50,000.00
Requested shortfall
$0.00
New combined LTV
61.7%
Remaining equity
$230,000.00
Line guidance
Combined loan-to-value is within a typical HELOC comfort zone for most lenders.
Phase-by-phase cost
Interest paid during draw period (120 months)
$46,250.00
Interest paid during repayment (180 months)
$42,627.31
Total repaid (principal + interest)
$138,877.31
Assumes the draw balance stays constant through the draw period and then amortizes at the repayment rate. A variable-rate HELOC can move either way from current terms.
EveryCalc calculators are designed for fast, practical estimates with transparent inputs and no required account. We use plain formulas, visible assumptions, and related tools so visitors can check the result from more than one angle.
Results are informational only. For financial, tax, legal, medical, construction, or other high-impact decisions, verify the output against primary sources or a qualified professional.
Learn more about our review process on the EveryCalc methodology page.
Calculation notes and example
HELOC formulas used here
A HELOC estimate starts with available equity: home value × lender CLTV limit minus existing mortgage and lien balances. During the draw period, many HELOCs require interest-only payments, calculated as balance × annual rate ÷ 12. During repayment, the balance is amortized over the repayment term using the fixed-payment loan formula, although real HELOC rates may be variable.
Worked example
A $700,000 home with a $420,000 mortgage and an 85% CLTV limit supports total debt of $595,000, leaving about $175,000 of potential line availability before lender adjustments. If $60,000 is drawn at 9%, an interest-only payment is about $450 per month. Once repayment begins, the payment can jump because principal is added. Use loan-to-value first to test equity, then this page to test draw and repayment payments.
Edge cases and practical tips
- Variable rates can make payments rise quickly; stress test a rate two points higher.
- Available equity is not the same as approved credit; lenders also check income, credit, and property type.
- Interest-only draw payments can hide the larger repayment-period obligation.
Useful companion tools: Loan-to-Value Calculator, Mortgage Calculator, Refinance Calculator, and Credit Card vs HELOC Calculator.
How to interpret the heloc result
Best use
Use the result as a planning number for comparing payments, rates, returns, tax reserves, or cash-flow choices before you request a quote or make a commitment.
Cross-check
Compare the answer with the contract, lender estimate, tax form, brokerage statement, payroll record, or invoice that will control the real-world outcome.
Watch for
Do not rely on a single optimistic rate, return, or fee assumption. Money pages work best when you run low, base, and high cases and keep professional advice separate from the estimate.
This page belongs to the Finance calculator library, so the answer should be read in the context of the decision you are modeling rather than as a universal rule.
Before relying on this heloc estimate
Most calculator mistakes come from the inputs, not the arithmetic. Use this short audit before you reuse the answer in a spreadsheet, quote, application, or important conversation.
Confirm source numbers
Match balances, rates, fees, taxes, income, and payment dates against the lender quote, payroll record, tax form, statement, invoice, or contract.
Separate cash flow from total cost
A lower monthly payment can still cost more over time if fees, interest, taxes, or a longer term are hidden in the structure.
Run conservative cases
Test at least one higher-cost or lower-return case before using the output for a purchase, refinance, investment, loan, or tax decision.
Rerun this page when the rate, price, term, fee, tax rule, income, expense, or expected holding period changes.
How to Use
- Enter your current home value, mortgage balance, and the maximum combined loan-to-value ratio your lender allows.
- Add the amount you want to draw along with the expected draw-period interest rate.
- Set the length of the draw period and the repayment period, plus any different rate during repayment.
- Review the available line, interest-only payment during the draw period, repayment payment afterward, and total interest across both phases.
Frequently Asked Questions
How is a HELOC different from a home equity loan?
A HELOC is a revolving line of credit with a draw period and usually a variable rate, while a home equity loan is a lump-sum fixed-rate installment loan. A HELOC lets you pull funds over time; a home equity loan funds once at closing.
What does the draw period actually mean?
The draw period is the window — often five to ten years — when you can borrow against the line and typically make interest-only payments. Once it ends, the line closes to new draws and switches to an amortizing repayment schedule.
Why does combined loan-to-value matter?
Lenders cap the total of your first mortgage plus any HELOC at a percentage of home value, often 80% to 90%. A higher combined LTV limits how large the line can be and can tighten pricing or eligibility.
Can the HELOC payment actually go up?
Yes. Most HELOCs have a variable rate tied to an index, so the draw payment can rise if rates move. After the draw period, the switch to an amortizing repayment payment is usually a larger jump than any rate move alone.
Is this a lender approval result?
No. Actual approval, line size, and pricing depend on credit, income, property type, lender overlays, and final appraisal. Use this to pressure-test whether a HELOC fits the plan before talking to a lender.
Related Calculators
Home Equity Loan Calculator
Compare a fixed-payment second lien against the variable HELOC structure.
Cash-Out Refinance Calculator
Compare resetting the first mortgage instead of adding a second lien.
Debt Consolidation Calculator
Pressure-test whether consolidating higher-rate debt into a HELOC actually saves money.
Rental Property Calculator
If the HELOC is funding a rental purchase, run the deal through a full rental analysis first.
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