HELOC & Home Equity Calculator
Estimate how much you can borrow with a home equity line of credit or loan, and the monthly payment during the draw and repayment periods.
How much equity can you borrow?
Lenders limit the combined loan-to-value ratio (CLTV): your mortgage plus the new line divided by the home's value. Most cap it at 80–85%, some at 90%.
Max line = Home value × CLTV limit − Mortgage balance
A $450,000 home with a $250,000 mortgage at an 85% limit: 450,000 × 0.85 = $382,500, minus $250,000 = a maximum line of $132,500.
HELOC payments in two phases
- Draw period (often 10 years): borrow as needed and usually pay interest only on what you have drawn.
- Repayment period (often 10–20 years): no new borrowing, and payments cover principal and interest, so they can jump sharply.
HELOC rates are usually variable, tied to the prime rate. A home equity loan works like a second mortgage instead: a lump sum at a fixed rate with fixed payments.
Good and risky uses
Home improvements that add value and consolidating high-interest debt are common uses. Because your home secures the loan, missing payments can lead to foreclosure. Avoid using home equity for vacations or everyday spending. Interest is tax-deductible only when the money is used to buy, build or substantially improve the home.
Frequently asked questions
How much can I borrow with a HELOC?
Typically up to 80–85% of your home value minus your mortgage balance, subject to your credit and income.
Is a HELOC or home equity loan better?
A HELOC suits ongoing or uncertain costs and offers flexibility; a home equity loan suits a single known expense and gives a fixed rate.
Does a HELOC hurt my credit?
Applying causes a hard inquiry. Using a large share of the line can affect your score, and on-time payments help it over time.
Last reviewed Oct 20, 2026. Results are estimates; check important decisions with a qualified professional.