HELOC Calculator
Calculate your home equity line of credit
Overview
The HELOC Calculator determines how much you can borrow against your home equity. It factors in your home value, current mortgage balance, and lender requirements to show your available credit line.
Best Used For
Inputs
The calculator accepts the following input fields:
| Field | Type | Description | Default |
|---|---|---|---|
| Home Value | currency | Current market value of your home | $500,000 |
| Mortgage Balance | currency | Current outstanding mortgage balance | $300,000 |
| Max LTV | percentage | Maximum combined loan-to-value ratio | 85% |
| HELOC Rate | percentage | Expected HELOC interest rate | 8.5% |
| Draw Period | select | Period during which you can borrow | 10 years |
Outputs
The calculator returns the following results:
| Output | Description |
|---|---|
| Total Equity | Your ownership stake in the home (Home Value − Mortgage) |
| Available Equity | Equity you can borrow against based on LTV limits |
| Maximum HELOC | The maximum credit line available |
| Current LTV | Current loan-to-value ratio |
| Interest-Only Payment | Monthly payment during draw period (interest only) |
How It Works
HELOC Calculation
Available HELOC = (Home Value × Max LTV) − Current Mortgage Balance
Lenders typically allow you to borrow up to a combined 80-90% LTV (your existing mortgage plus the HELOC). The default maximum is 85%.
LTV Requirements by Lender Type
Maximum combined loan-to-value varies by lender:
| Lender Type | Max Combined LTV | Notes |
|---|---|---|
| Conservative Banks | 80% | Lower risk tolerance, best rates |
| Standard Lenders | 85% | Most common maximum |
| Aggressive Lenders | 90% | Higher rates, stricter requirements |
| Credit Unions | 90-95% | May offer highest LTV to members |
HELOC vs Home Equity Loan
Understanding the difference between these two equity products:
| Feature | HELOC | Home Equity Loan |
|---|---|---|
| Rate Type | Variable | Fixed |
| Draw Period | Yes (5-10 years) | No |
| Lump Sum | No (revolving) | Yes |
| Interest Only | Available | No |
| Best For | Ongoing expenses | One-time purchase |
Qualification Requirements
Most HELOC lenders require:
Maximum DTI: 43% (all debt payments / gross income)
Minimum Credit Score: 620-680 typically
Minimum Equity: 15-20% after HELOC
Example Scenario
A homeowner with a $500,000 home and $300,000 remaining mortgage balance, seeking maximum equity access.
Inputs
Results
Explanation
With $200,000 in equity and an 85% max LTV, the homeowner can borrow up to $125,000 through a HELOC. The maximum borrowable amount is $500,000 × 85% = $425,000, minus the existing $300,000 mortgage = $125,000.
Interest-Only Payments