HELOC Calculator

Estimate your Home Equity Line of Credit (HELOC) limit and payments.

Why HELOC Matters

A Home Equity Line of Credit (HELOC) allows homeowners to borrow against the equity in their home, typically at a lower interest rate than credit cards or personal loans. It's a flexible way to finance home improvements, debt consolidation, or education.

How to Use This Calculator

Enter your home value, current mortgage balance, and the lender's maximum LTV (Loan-to-Value) limit (usually 80%). Add the expected interest rate, draw period, and repayment term. The calculator shows:

  • Available HELOC limit
  • Monthly interest-only payment during draw period
  • Amortizing payment during repayment phase

The HELOC Formulas

Available Credit = (Home Value × LTV) − Mortgage Balance
Interest-Only Payment = Credit × (Rate / 12)
Amortizing Payment = P × [r(1+r)ⁿ] / [(1+r)ⁿ − 1]

Where:

  • LTV = Max loan-to-value ratio (e.g., 80%)
  • Rate = Annual interest rate
  • P = Loan amount (available credit)
  • r = Monthly interest rate
  • n = Number of repayment months

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