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HELOC (Home Equity Line of Credit) Calculator

Estimate your maximum borrowing limit and potential monthly payments.

75% (Conservative) 80% (Standard) 85% (Aggressive) 90% (High Limit)

Calculation Summary

Maximum Combined Loan-to-Value (CLTV):

Estimated HELOC Limit:

Estimated Monthly Payment (Interest-Only):

Warning: Based on your current mortgage balance and the selected LTV, you may not have enough equity for a HELOC.

function calculateHELOC() { var homeValue = parseFloat(document.getElementById('homeValue').value); var mortgageBalance = parseFloat(document.getElementById('mortgageBalance').value); var ltvLimit = parseFloat(document.getElementById('ltvLimit').value) / 100; var interestRate = parseFloat(document.getElementById('interestRate').value) / 100; if (isNaN(homeValue) || isNaN(mortgageBalance) || isNaN(interestRate)) { alert('Please enter valid numerical values.'); return; } var totalAllowableDebt = homeValue * ltvLimit; var helocLimit = totalAllowableDebt – mortgageBalance; var monthlyInterest = (helocLimit > 0 ? (helocLimit * interestRate) / 12 : 0); document.getElementById('resultArea').style.display = 'block'; document.getElementById('cltvResult').innerText = '$' + totalAllowableDebt.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); if (helocLimit <= 0) { document.getElementById('limitResult').innerText = '$0.00'; document.getElementById('paymentResult').innerText = '$0.00'; document.getElementById('negativeWarning').style.display = 'block'; } else { document.getElementById('limitResult').innerText = '$' + helocLimit.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('paymentResult').innerText = '$' + monthlyInterest.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('negativeWarning').style.display = 'none'; } }

Understanding Your HELOC Limit

A Home Equity Line of Credit (HELOC) is a revolving credit line that uses your home's equity as collateral. Unlike a standard home equity loan, a HELOC allows you to withdraw funds as needed, repay them, and borrow again during the "draw period."

How is a HELOC Calculated?

Lenders typically use a Combined Loan-to-Value (CLTV) ratio to determine your borrowing power. Most lenders permit a CLTV of 80% to 85%, though some may go higher for borrowers with excellent credit scores.

The formula used in our calculator is:

• Step 1: Home Value × LTV Limit = Total Allowable Debt
• Step 2: Total Allowable Debt – Current Mortgage Balance = Maximum HELOC Limit

Real-World Example

Imagine your home is worth $400,000 and you still owe $250,000 on your primary mortgage. If a lender allows an 80% LTV:

1. 80% of $400,000 = $320,000 (Total Allowable Debt)
2. $320,000 – $250,000 = $70,000 (Your HELOC Limit)

Key Factors That Influence Your Approval

• Credit Score: Higher scores (720+) often unlock lower interest rates and higher LTV limits.
• Debt-to-Income (DTI) Ratio: Lenders prefer a DTI below 43% to ensure you can manage the additional monthly payments.
• Home Appraisal: The final amount is always based on a professional appraisal, not just an online estimate.

Pros and Cons of a HELOC

Pros	Cons
Only pay interest on what you use.	Variable interest rates can rise over time.
Lower interest rates than credit cards.	Your home is the collateral (risk of foreclosure).
Potential tax benefits (if used for home improvements).	Minimum withdrawal requirements may apply.

Disclaimer: This calculator is for informational purposes only. Actual loan amounts and interest rates depend on lender criteria, credit scores, and verified appraisals.