HELOC Calculator
Estimate how much you could borrow with a home equity line of credit, and your monthly interest-only payment.
How lenders determine your HELOC limit
Lenders typically cap total borrowing (your existing mortgage plus the new HELOC) at a combined loan-to-value ratio, commonly 80-85% of your home's appraised value. This calculator uses that combined limit to estimate your maximum available credit line, though your actual approved amount also depends on credit score, income, and debt-to-income ratio.
A HELOC is secured by your home, similar to a second mortgage — this is why lenders can typically offer lower rates than unsecured credit, but it also means your home is collateral, making responsible borrowing especially important.
How HELOC payments typically work
Most HELOCs have two phases: a draw period (often 5-10 years) where you can borrow as needed and typically only pay interest on what you've drawn, followed by a repayment period where you pay down both principal and interest on the outstanding balance. This calculator estimates the interest-only payment during the draw period.
Because HELOCs commonly carry variable interest rates, your actual payment can change over time as rates move — unlike a fixed-rate home equity loan, where the rate and payment stay constant for the life of the loan.
Frequently asked questions
What's the difference between a HELOC and a home equity loan?
A HELOC is a revolving credit line you can draw from as needed, typically with a variable rate, while a home equity loan provides a lump sum upfront with a fixed rate and fixed payments.
Why is my payment only interest during the draw period?
Many HELOCs are structured to require interest-only payments during an initial draw period, with principal repayment beginning once the draw period ends and the repayment period begins.