Determine how much credit you can access based on your home's current value and your existing mortgage.
Most lenders allow up to 80% or 85% of your home's value.
Your Estimated HELOC Limit
How to Use This HELOC Calculator
A Home Equity Line of Credit (HELOC) is a revolving line of credit that uses your home as collateral. Understanding how much you can borrow is crucial for planning home renovations, debt consolidation, or emergency funding.
The HELOC Formula
Lenders calculate your borrowing power by taking a percentage of your home's appraised value and subtracting what you still owe on your primary mortgage. The formula looks like this:
In this scenario, your maximum HELOC line would be $70,000.
Important Considerations
Variable Rates: HELOCs usually have variable interest rates, meaning your monthly payments can change over time.
Draw vs. Repayment Period: During the "draw period" (often 10 years), you usually pay interest only. Afterward, you enter the "repayment period" where you must pay back both principal and interest.
Appraisal Requirements: Your lender will likely require a professional appraisal to confirm your home's current market value before final approval.
function calculateHeloc() {
var homeValue = parseFloat(document.getElementById('homeValue').value);
var cltvLimit = parseFloat(document.getElementById('cltvLimit').value);
var mortgageBalance = parseFloat(document.getElementById('mortgageBalance').value);
var resultBox = document.getElementById('helocResultBox');
var resultValue = document.getElementById('resultValue');
var resultDetails = document.getElementById('resultDetails');
var resultTitle = document.getElementById('resultTitle');
if (isNaN(homeValue) || isNaN(cltvLimit) || isNaN(mortgageBalance)) {
alert("Please enter valid numbers in all fields.");
return;
}
var maxTotalBorrowing = homeValue * (cltvLimit / 100);
var helocLimit = maxTotalBorrowing – mortgageBalance;
resultBox.style.display = 'block';
if (helocLimit > 0) {
resultBox.style.backgroundColor = '#e6f4ea';
resultBox.style.border = '1px solid #34a853';
resultTitle.style.color = '#137333';
resultValue.style.color = '#137333';
resultValue.innerHTML = '$' + helocLimit.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
resultDetails.innerHTML = "Based on a " + cltvLimit + "% CLTV limit, your total borrowing capacity is $" + maxTotalBorrowing.toLocaleString() + ". After subtracting your existing mortgage, you have approximately $" + helocLimit.toLocaleString() + " in available credit.";
} else {
resultBox.style.backgroundColor = '#fce8e6';
resultBox.style.border = '1px solid #d93025';
resultTitle.style.color = '#c5221f';
resultValue.style.color = '#c5221f';
resultValue.innerHTML = "$0.00";
resultDetails.innerHTML = "Based on these numbers, you do not currently have enough equity to open a HELOC at the specified " + cltvLimit + "% CLTV limit.";
}
}