Calculate how much equity you can borrow from your home.
Estimated Maximum HELOC Amount
$0.00
What is a HELOC?
A Home Equity Line of Credit (HELOC) is a revolving line of credit that allows homeowners to borrow against the equity they have built in their property. Unlike a standard home equity loan which provides a lump sum, a HELOC works more like a credit card: you have a maximum limit, and you can withdraw funds as needed during a set "draw period."
How Does This Calculator Work?
Lenders typically use a Combined Loan-to-Value (CLTV) ratio to determine your borrowing limit. The formula used by this calculator is:
(Home Value × Max LTV Percentage) – Current Mortgage Balance = Available HELOC
Example Calculation
Realistic Scenario:
– Home Value: $500,000
– Mortgage Balance: $300,000
– Lender Max LTV: 85%
Credit Score: Higher scores often unlock higher LTV percentages (up to 90%) and lower interest rates.
Debt-to-Income (DTI) Ratio: Lenders evaluate your monthly income against your existing debt payments.
Appraised Value: While you can estimate your home's value, the lender will require a professional appraisal.
Draw Period vs. Repayment Period
During the Draw Period (usually 5-10 years), you can take money out and often make interest-only payments. Once the Repayment Period begins (usually 10-20 years), you can no longer withdraw funds and must pay back both principal and interest.
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 resultExplanation = document.getElementById('helocExplanation');
if (isNaN(homeValue) || isNaN(mortgageBalance) || isNaN(ltvLimit)) {
alert("Please enter valid numbers in all fields.");
return;
}
if (ltvLimit > 100) {
alert("LTV Percentage usually cannot exceed 100%.");
return;
}
var ltvDecimal = ltvLimit / 100;
var maxTotalDebt = homeValue * ltvDecimal;
var helocAmount = maxTotalDebt – mortgageBalance;
if (helocAmount 0) {
resultExplanation.innerHTML = "Based on a " + ltvLimit + "% LTV limit, your total allowed debt is " + formatter.format(maxTotalDebt) + ". After subtracting your " + formatter.format(mortgageBalance) + " mortgage, you have " + formatter.format(helocAmount) + " in available credit.";
} else {
resultExplanation.innerHTML = "Based on these numbers, you currently do not have enough equity to meet the lender's " + ltvLimit + "% LTV requirement for a HELOC.";
}
resultBox.scrollIntoView({ behavior: 'smooth', block: 'nearest' });
}