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Home Equity Line of Credit (HELOC) Calculator

75% 80% (Standard) 85% 90% Most lenders limit total debt to 80-85% of your home's value.

Your Results

Maximum Combined Loan Amount:

Estimated HELOC Limit:

Warning: Your current mortgage balance exceeds the lending limit. You may not qualify for a HELOC at this time.

function calculateHELOC() { var homeValue = parseFloat(document.getElementById('calcHomeValue').value); var balance = parseFloat(document.getElementById('calcMortgageBalance').value); var ltv = parseFloat(document.getElementById('calcLTV').value) / 100; if (isNaN(homeValue) || isNaN(balance) || homeValue 0) { document.getElementById('resHelocLimit').innerText = '$' + helocLimit.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); warning.style.display = 'none'; } else { document.getElementById('resHelocLimit').innerText = '$0.00'; warning.style.display = 'block'; } }

How Does a HELOC Calculator Work?

A Home Equity Line of Credit (HELOC) is a revolving line of credit that uses your home as collateral. Unlike a standard home equity loan, which provides a lump sum, a HELOC allows you to borrow as needed, much like a credit card, typically at lower interest rates.

This calculator determines your borrowing power by evaluating three primary factors:

• Current Market Value: What your home is worth in the current real estate market.
• Loan-to-Value (LTV) Ratio: The percentage of your home's value that a lender is willing to risk. Most banks set this at 80%, meaning they want you to maintain at least 20% equity.
• Existing Debt: The remaining balance on your primary mortgage.

The HELOC Formula

HELOC Limit = (Home Value × LTV %) – Current Mortgage Balance

Example Calculation

Imagine you own a property valued at $450,000 and your current mortgage balance is $250,000. Your lender allows for an 85% LTV.

1. Calculate the maximum allowed total debt: $450,000 × 0.85 = $382,500.
2. Subtract your current mortgage: $382,500 – $250,000 = $132,500.
3. Your estimated available credit line is $132,500.

Why Use a HELOC?

Homeowners often tap into their home equity for high-impact financial moves. Because HELOCs are secured by real estate, the interest rates are significantly lower than personal loans or credit cards. Common uses include:

• Home Improvements: Renovations can increase your property's value, providing a return on your investment.
• Debt Consolidation: Paying off high-interest credit card debt with a lower-interest HELOC.
• Emergency Fund: Having a line of credit available for unexpected medical bills or repairs.
• Education Expenses: Funding college tuition with a flexible repayment schedule.

Requirements to Qualify

While equity is the biggest factor, lenders also look at your Debt-to-Income (DTI) ratio and credit score. Generally, a credit score of 680 or higher is required for the best rates, and your total monthly debt payments should ideally be less than 43% of your gross monthly income.

Pro Tip: Draw Period vs. Repayment Period

Most HELOCs have a 10-year "draw period" where you only pay interest on what you borrow. After that, you enter the "repayment period" (often 20 years), where you must pay back both principal and interest. Always plan for the payment increase when the draw period ends!