HELOC Calculator
Estimate your Maximum Home Equity Line of Credit & Monthly Payments
Your Results
Max Line of Credit
$0.00
Est. Monthly Interest*
$0.00
Total Equity Available
$0.00
Combined LTV
0%
*Estimated monthly payment is based on interest-only during the draw period, assuming the full credit line is utilized.
How Your HELOC Limit is Calculated
A Home Equity Line of Credit (HELOC) allows you to borrow against the equity in your home. Lenders don't let you borrow the full value of your home; instead, they use a formula based on your Combined Loan-to-Value (CLTV) ratio.
The HELOC Formula
(Home Value × LTV Limit) – Current Mortgage Balance = Maximum HELOC Amount
Practical Example
Suppose your home is worth $400,000 and your remaining mortgage balance is $250,000. If your lender allows an 80% LTV ratio:
- Step 1: Calculate maximum allowed debt ($400,000 × 0.80 = $320,000).
- Step 2: Subtract your current mortgage ($320,000 – $250,000).
- Result: Your maximum HELOC limit would be $70,000.
Draw vs. Repayment Period
Most HELOCs have two distinct phases:
- The Draw Period: Typically 10 years. You can borrow as needed and usually only pay interest on the amount you've used.
- The Repayment Period: Typically 20 years. You can no longer borrow money, and you must pay back both the principal and interest.
Important Note: HELOC interest rates are usually variable, meaning they can fluctuate with the market prime rate. Always check with your financial institution for current rates and specific lending criteria.