HELOC Payment Calculator
Calculate your maximum credit line and estimated monthly payments.
Warning: Draw amount exceeds your maximum credit line.
How a Home Equity Line of Credit (HELOC) Works
A HELOC is a revolving line of credit that allows you to borrow against the equity you've built in your home. Unlike a traditional home equity loan that provides a lump sum, a HELOC works more like a credit card with a set limit that you can draw from as needed during the "draw period."
Calculating Your Maximum Credit Limit
Lenders use the Combined Loan-to-Value (CLTV) ratio to determine how much you can borrow. This calculation considers both your current mortgage balance and the new credit line relative to your home's appraised value.
Formula: (Home Value × CLTV %) – Existing Mortgage Balance = Max HELOC Limit
Interest-Only Payments vs. Repayment
During the draw period (typically 10 years), most HELOCs require only interest-only payments on the amount you have actually borrowed. Once the draw period ends, you enter the repayment period (typically 20 years), where you must pay back both the principal and interest.
Realistic Example Calculation
- Home Value: $500,000
- Mortgage Balance: $300,000
- Lender CLTV Limit: 85% ($425,000)
- Calculated Limit: $425,000 – $300,000 = $125,000 HELOC
- Payment: If you draw $50,000 at an 8% interest rate, your monthly interest-only payment would be approximately $333.33.