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 BalanceInterest-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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