HELOC Calculator

A Home Equity Line of Credit (HELOC) is a revolving credit line secured by your home's equity — the difference between your home's market value and your outstanding mortgage balance. Like a credit card, you can borrow, repay, and borrow again during the draw period, then repay the remaining balance in full during the repayment period. See also our EMI Calculator.

A home equity loan gives you a lump sum at a fixed interest rate with fixed monthly payments. A HELOC is a revolving credit line, typically with a variable rate, that lets you draw funds as needed during the draw period. HELOCs offer more flexibility but come with the risk of rising payments if interest rates increase.

The draw period — typically 5 to 10 years — is the window during which you can borrow from the credit line, usually paying interest only. The repayment period — typically 10 to 20 years — begins after the draw period ends, during which you repay both principal and interest in fixed monthly installments.

Lenders typically allow you to borrow up to 80–90% of your home's appraised value, minus your outstanding mortgage balance. For example, if your home is worth $400,000, you owe $250,000, and the lender caps the combined loan-to-value (CLTV) at 85%, your maximum credit line is $90,000 ($400,000 × 85% − $250,000). You might also find our find Payment per Period with Business Loan Calculator useful.

Some lenders require your initial draw to be at or above a minimum threshold (often $10,000) or may limit the initial draw to a percentage of the credit line. If the amount you entered falls outside those parameters, the calculator or lender system may adjust it to the nearest qualifying amount.

If no payment is shown, it usually means the requested credit line exceeds the available equity based on your home value, mortgage balance, and the lender's LTV limit. Try increasing your home value estimate, reducing your requested credit line, or selecting a higher LTV option to see qualifying results.

Most HELOCs carry a variable interest rate tied to the prime rate or another index, meaning your monthly payment can rise or fall over time. Some lenders offer rate-lock options that let you convert part or all of your balance to a fixed rate. Always confirm the rate type with your lender before applying.

HELOC closing costs typically range from 2% to 5% of the credit line and may include appraisal fees, title search fees, origination fees, and attorney fees. Some lenders waive closing costs entirely or roll them into the loan balance, so it pays to compare offers from multiple lenders.