Estimate how much equity you can access from your home.
70%
75%
80% (Standard)
85%
90%
Excellent (740+)
Good (670-739)
Fair (580-669)
Estimated Maximum HELOC Amount:
$0
*This is an estimate. Actual approval depends on debt-to-income (DTI) ratios and verified appraisals.
How a HELOC Calculation Works
A Home Equity Line of Credit (HELOC) is a revolving line of credit secured by your home. Unlike a standard home equity loan, a HELOC allows you to borrow, repay, and borrow again during the "draw period."
Lenders typically use a Combined Loan-to-Value (CLTV) ratio to determine your borrowing limit. Most lenders allow a maximum CLTV of 80% to 85%, though some may go higher for borrowers with excellent credit.
The HELOC Formula
To calculate your potential credit limit, we use the following formula:
(Home Value × Max LTV %) – Current Mortgage Balance = Available HELOC
Debt-to-Income (DTI): Lenders want to see that your total monthly debt payments (including the new HELOC) don't exceed 43-50% of your gross income.
Appraisal: A professional appraisal will determine the final "Home Value" used in the calculation.
function calculateHELOC() {
var homeValue = parseFloat(document.getElementById('homeValue').value);
var mortgageBalance = parseFloat(document.getElementById('mortgageBalance').value);
var ltvLimit = parseFloat(document.getElementById('ltvLimit').value);
var resultBox = document.getElementById('helocResultBox');
var resultValue = document.getElementById('helocResultValue');
var warningText = document.getElementById('helocWarning');
// Validation
if (isNaN(homeValue) || homeValue <= 0) {
alert("Please enter a valid home value.");
return;
}
if (isNaN(mortgageBalance)) {
mortgageBalance = 0;
}
// Calculation
var maxTotalLoan = homeValue * ltvLimit;
var availableEquity = maxTotalLoan – mortgageBalance;
// Display Logic
resultBox.style.display = 'block';
warningText.style.display = 'none';
if (availableEquity = homeValue) {
warningText.innerHTML = "Warning: Your mortgage balance exceeds your home value (Negative Equity).";
warningText.style.display = 'block';
}
}
// Smooth scroll to result on mobile
if (window.innerWidth < 600) {
resultBox.scrollIntoView({ behavior: 'smooth', block: 'nearest' });
}
}