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Calculator Documentation

HELOC Investor Analyzer

Calculate how much equity you can tap from investment properties to fund new acquisitions

Schema version 2.0.0 · Category: investment

Inputs

Investment Property

Your investment property value and existing debt

FieldTypeDefaultNotes
Property Valuecurrency$400,000Current market value of your investment property
Current Mortgage Balancecurrency$250,000Remaining balance on existing mortgage

HELOC Terms

Rate, LTV cap, and draw amount

FieldTypeDefaultNotes
Max LTVpercentage75.00%Most investor HELOCs cap at 75% combined LTV
HELOC Ratepercentage9.00%Current HELOC interest rate (variable)
Draw Amountcurrency$50,000How much you plan to draw for your next deal

Next Deal Analysis

Target acquisition details

FieldTypeDefaultNotes
Target Purchase Pricecurrency$200,000Purchase price of your next investment
Target Down Payment %percentage25.00%Down payment needed for next property

Calculations

Every figure this calculator produces, in evaluation order. Formulas reference input ids, parameters, and earlier calculations.

totalEquityTotal equity in the property
propertyValue - currentMortgageBalance
maxBorrowableMaximum borrowable equity based on LTV cap
max(0, (propertyValue * maxLTV) - currentMortgageBalance)
approvedDrawApproved draw amount capped by max borrowable
min(drawAmount, maxBorrowable)
currentLTVCurrent loan-to-value ratio before HELOC
if(propertyValue > 0, (currentMortgageBalance / propertyValue) * 100, 0)
combinedLTVCombined LTV with HELOC draw
if(propertyValue > 0, ((currentMortgageBalance + approvedDraw) / propertyValue) * 100, 0)
ltvHeadroomRemaining LTV room before hitting max
(maxLTV * 100) - combinedLTV
monthlyInterestOnlyMonthly interest-only payment on the draw
approvedDraw * (helocRate / 12)
annualInterestCostAnnual interest cost on the draw
monthlyInterestOnly * 12
targetDownPaymentDown payment required for next acquisition
targetPurchasePrice * targetDownPaymentPct
dealsFromEquityNumber of deals fundable from max equity
if(targetDownPayment > 0, floor(maxBorrowable / targetDownPayment), 0)
canFundNextDealWhether the draw covers the next down payment
if(approvedDraw >= targetDownPayment, 1, 0)
cannotFundNextDealInverted funding flag for the verdict (0 = covered, 1 = shortfall; recommendation thresholds are lower-is-better)
1 - canFundNextDeal
shortfallShortfall between draw and required down payment
if(approvedDraw < targetDownPayment, targetDownPayment - approvedDraw, 0)
leverageRatioProperty value per dollar of equity used
if(approvedDraw > 0, targetPurchasePrice / approvedDraw, 0)
remainingEquityEquity remaining after HELOC draw
totalEquity - approvedDraw

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