HELOC Calculator

Home equity line of credit limit, draw & repayment payments

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HELOC Calculator is a free, browser-based tool that lets you home equity line of credit limit, draw & repayment payments — with zero signup, zero installation. Your data never leaves your browser. Part of 111+ free developer and business tools at wowhow.cloud, built and maintained by a team with 14+ years of hands-on development experience.

TOOLHELOC Calculator

Home Value$500,000

$50K$3M

Current Mortgage Balance$280,000

Max LTV %85%

70%85% default95%

Draw Period Settings

Draw Period

Interest Rate (APR %)8.5%

4%8.5% avg 202618%

Monthly Draw Amount$500

Interest-only during draw: $425.00/mo

Repayment Period Settings

Repayment Period

Max HELOC Credit Line

$145,000

85% LTV · $500,000 home · $280,000 mortgage balance

Home equity breakdown44.0% equity

Mortgage HELOC available Unencumbered

Current Equity

$220,000

44.0% of home

Max Credit Line

$145,000

at 85% LTV

Equity Cushion

$75,000

above HELOC limit

Payment Phases

Draw Period (10 years)

Interest-only on drawn balance

$425.00/mo

at full draw

Drawing $500/mo builds to a $60,000 balance over 120 months

Repayment Period (20 years)

Principal + Interest, fully amortized

$520.69/mo

fixed P&I

Total interest during repayment: $64,967

Total Cost Summary

Amount Borrowed

$60,000

Total Interest

$90,679

Draw Period

10 yrs interest-only

Repay Period

20 yrs P&I

What $145,000 Could Do

Home Renovations

Kitchen/bath remodel, additions, or landscaping — often adds more value than the HELOC costs.

Debt Consolidation

Replace 20%+ credit card debt with HELOC at 8-9% — saves hundreds per month in interest.

College Tuition

Fund education costs with flexible draws — only borrow what you need each semester.

Emergency Fund Backup

A HELOC with $0 balance acts as a safety net — interest-free until you actually draw on it.

Estimates only. HELOC rates are variable and tied to the Prime Rate — actual payments change with market conditions. Maximum LTV and credit line approval depend on lender policies, credit score, and property appraisal. Consult a mortgage professional before opening a HELOC.

About HELOC Calculator

A HELOC (Home Equity Line of Credit) lets you tap the equity built up in your home as a revolving credit line — similar to a credit card, but secured by your property and at far lower interest rates. The key advantage over a home equity loan is flexibility: you only borrow what you need, when you need it, and only pay interest on the outstanding balance. This calculator shows your maximum credit line based on your home value, LTV limit, and existing mortgage — then models both the draw phase (interest-only) and the repayment phase (principal + interest) so you can plan for the payment jump at the transition.

How It Works

Step 1 — Credit Line: Available HELOC = (Home Value × Max LTV%) − First Mortgage Balance. Lenders use the appraised value of your home and their LTV cap. Most banks go to 80%, credit unions often reach 90%, and some specialty lenders allow 95%.

Step 2 — Draw Period Payments: During the draw period, you pay interest only on the amount drawn. Monthly interest = (Current Balance × APR) ÷ 12. If you draw $1,000/month on a $100,000 credit line at 8.5% APR, by month 12 your balance is $12,000 and monthly interest is $85. By month 60 at $3,000/month, balance is $100,000 (capped at limit) and interest is $708/month.

Step 3 — Repayment Phase: At the end of the draw period, the outstanding balance converts to a fully-amortizing loan. Monthly payment = Balance × [r(1+r)^n] / [(1+r)^n − 1], where r = monthly rate and n = repayment months. For a $100,000 balance at 8.5% over 20 years, monthly P&I = $868 — significantly more than the $708 interest-only payment during draw. This payment shock catches many HELOC borrowers off guard.

The total cost comparison with a home equity loan accounts for the fact that the HELOC draws are gradual (you pay less total interest early) while the home equity loan starts charging interest on the full amount from day one.

Who Is This For

A homeowner with a $450,000 home and $250,000 mortgage has $132,500 HELOC available at 85% LTV. Planning a $80,000 kitchen renovation over 2 years, they want to model interest-only payments during construction and the P&I payment after.

A couple with $60,000 in credit card debt at 22% APR wants to consolidate into their HELOC at 8.5% — they use the comparison panel to verify they will save over $12,000 in total interest.

A parent opening a HELOC to fund 4 years of college tuition draws $15,000/year — they want to see draw period payments during school, then model the 15-year repayment that begins after graduation.

A real estate investor comparing a HELOC vs home equity loan to fund a $75,000 investment property down payment — they want the fixed-payment certainty of a home equity loan vs the flexibility of a HELOC.

A financial planner modeling a backup emergency fund HELOC — opened at $100,000 limit with $0 drawn. The tool confirms $0 payments until drawn, then models payments if they ever need to tap it.

Scope note: This calculator assumes a fully drawn balance at the end of the draw period for repayment calculations. Actual repayment is based on your actual outstanding balance, not the credit limit. HELOC rates are variable; this calculator uses a fixed rate for illustration — actual payments will fluctuate with Prime Rate changes. Closing costs (typically $500-$1,500 for a HELOC) are not included. Some HELOCs have annual fees, inactivity fees, or early closure penalties. Property values used here are self-reported estimates — lenders use formal appraisals. Always review the full loan agreement and consult a mortgage professional before opening a HELOC.

How to Use

Enter your home value and current mortgage balance

Adjust the Max LTV % — most lenders allow 80-85% (default 85%)

Set your draw period length (5 or 10 years) and current APR

Enter your planned monthly draw amount to see interest-only payments

Choose your repayment period to see P&I payments and total interest cost

Toggle the comparison panel to see HELOC vs Home Equity Loan side by side

Frequently Asked Questions

Your maximum HELOC credit line = (Home Value × Max LTV%) − Mortgage Balance. For example, a $500,000 home with a $280,000 mortgage at 85% LTV: $500,000 × 0.85 − $280,000 = $145,000. Most lenders cap combined LTV (first mortgage + HELOC) at 80-90% of appraised value.

A HELOC has two phases. During the draw period (typically 5-10 years), you can borrow up to your credit limit and only pay interest on what you have borrowed — payments are low but the balance does not shrink. During the repayment period (typically 10-20 years), you can no longer draw funds and must repay principal plus interest, similar to a standard amortizing loan. Monthly payments jump significantly at this transition.

A HELOC is a revolving line of credit — you draw as needed, and the rate is typically variable (tied to Prime Rate). A Home Equity Loan (second mortgage) gives you a lump sum upfront at a fixed rate with fixed monthly payments from day one. HELOCs offer flexibility; home equity loans offer payment predictability. If you know exactly how much you need, a home equity loan is often cheaper due to fixed rates.

After the 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, college tuition, or other personal expenses is no longer deductible. Consult a tax professional for your specific situation.

Most lenders require a minimum 620-640 credit score, though the best rates typically require 740+. Lenders also look at combined LTV ratio (usually max 80-85%), debt-to-income ratio (typically max 43-50%), and 12-24 months of on-time mortgage payment history.

Yes. All calculations happen entirely in your browser. No financial data is ever sent to any server.

Most HELOCs are variable-rate, tied to the Wall Street Journal Prime Rate plus a margin (e.g., Prime + 0.5%). As the Prime Rate changes, your monthly interest-only payment during the draw period changes too. A 1% rate increase on a $100,000 balance adds $83/month. This calculator uses a fixed rate for illustration — budget for rate increases when planning.