HELOC Calculator
How much can you borrow against your home equity? Calculate your maximum HELOC, estimate draw-period and repayment-period payments, or compare a HELOC against a cash-out refinance. Works with any currency.
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How to Use This Calculator
Tab "Borrowing Power"
Enter your home value, current mortgage balance, and the maximum CLTV (combined loan-to-value) your lender allows. The calculator shows the maximum HELOC amount you can qualify for, your current equity, current LTV, and CLTV after adding the HELOC. Most lenders cap CLTV at 80-85%.
Tab "Payment Schedule"
Enter the draw amount you plan to use, the HELOC interest rate, draw period (interest-only years), and repayment period (principal + interest years). The result shows your interest-only monthly payment during the draw period, the P&I payment during repayment, and total interest paid over the life of the loan.
Tab "HELOC vs Cash-Out Refi"
Compare keeping your existing mortgage plus a HELOC against replacing everything with a single cash-out refinance. Enter the HELOC rate, cash-out refi rate, and the new mortgage amount (existing balance plus additional cash needed). See monthly cost and total interest for each option side by side.
The Formulas
Max HELOC = Home Value × Max CLTV% − Mortgage Balance
CLTV (Combined Loan-to-Value):
CLTV = (Mortgage Balance + HELOC Amount) / Home Value
Interest-only payment (draw period):
Monthly Payment = Draw Amount × Annual Rate / 12
P&I payment (repayment period):
Monthly Payment = P × r × (1+r)n / ((1+r)n − 1)
where P = principal, r = monthly rate, n = total months
Total interest paid:
Total Interest = (IO Payment × Draw Months) + (P&I Payment × Repayment Months − Principal)
All calculations are universal and pre-tax. HELOC rates are typically variable, so actual costs may differ. Results are estimates.
Worked Examples
Example 1 — Borrowing power: $500K home, $300K mortgage, 80% CLTV
A homeowner with a $500,000 home and $300,000 remaining mortgage applies for a HELOC with a lender allowing 80% CLTV.
With $200,000 in equity and an 80% CLTV cap, this homeowner can access up to $100,000 through a HELOC.
Example 2 — Payment schedule: $60K draw at 8.5%, 10-year draw, 20-year repayment
A homeowner draws $60,000 from their HELOC at 8.5% APR with a 10-year interest-only draw period followed by 20 years of P&I repayment.
The interest-only draw period keeps payments low at $425/month, but the total interest over 30 years nearly doubles the original draw amount.
Example 3 — HELOC vs cash-out refi: $360K total at 8.5% HELOC vs 6.5% refi
A homeowner with a $300,000 mortgage needs $60,000 in additional funds. Option A: keep the existing mortgage and add a $60K HELOC at 8.5%. Option B: cash-out refinance the full $360,000 at 6.5% fixed for 30 years.
The cash-out refi has a slightly lower monthly payment and rate certainty. However, if HELOC rates drop or you repay quickly, the HELOC may cost less overall. Consider closing costs (2-5% of loan) for the refi.