HELOC Calculator
Estimate your available home equity credit line, draw period payments and repayment schedule.
Estimates only - your actual credit limit, rate and terms depend on the lender, your credit score, income and location. Always get a written offer before signing.
HELOC Details
About HELOCs
Draw period vs repayment period
During the draw period, most lenders let you make interest-only payments on whatever you've borrowed, keeping your minimum payment low. Once the draw period ends, the HELOC converts into a fully amortizing loan over the repayment period, so your payment can jump noticeably - plan ahead for this change.
Variable rates
Most HELOCs carry a variable rate tied to the Prime Rate, so your payment can rise or fall over time. This calculator assumes a fixed rate for simplicity - check with your lender about rate caps and adjustment periods.
Quick Tips
- Most lenders cap CLTV at 80-85%
- Interest-only draw payments don't reduce your balance
- Expect a payment jump once repayment starts
- Shop multiple lenders - rates and fees vary widely
Frequently Asked Questions
A HELOC (Home Equity Line of Credit) is a revolving credit line secured against your home, similar to a credit card - you can draw, repay and redraw funds during the draw period, and interest is only charged on what you actually borrow. A home equity loan, by contrast, pays out a single lump sum upfront with a fixed rate and a fixed repayment schedule from day one.
Most lenders cap your combined loan-to-value (CLTV) - your existing mortgage balance plus the new HELOC limit - at 80-85% of your home's appraised value, though some go higher for borrowers with strong credit. Your available credit line is roughly (home value x max CLTV%) minus your current mortgage balance, though your income, credit score and debt-to-income ratio also affect the final offer.
A typical HELOC has a 10-year draw period, during which you can borrow and often only have to make interest-only payments, followed by a 15-20 year repayment period where the outstanding balance is amortized into fixed principal-and-interest payments. Your payment can increase significantly once the repayment period begins, so it is worth planning for that jump in advance.
Under current US tax law, HELOC interest is only deductible if the funds are used to "buy, build or substantially improve" the home that secures the loan, and the combined mortgage debt stays within IRS limits. Interest on funds used for other purposes, like debt consolidation or a vacation, is generally not deductible. Speak to a tax professional about your specific situation.
Making interest-only payments keeps the principal balance unchanged, so the full amount you drew is still owed when the repayment period starts. That can mean a much larger monthly payment once amortization begins, since the full balance then has to be repaid over a shorter remaining term. Paying down some principal during the draw period reduces this later payment shock.