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HELOC Calculator

Estimate the size of a home equity line of credit, what the interest-only draw payment looks like, and how the amortizing repayment payment compares once the draw period ends.

Reviewed byJulian Germanfor EveryCalcMethodology
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Available line

$190,000.00

Interest-only payment

$385.42

During the draw period

Repayment payment

$514.60

After the draw period ends

Total interest

$88,877.31

Equity and line sizing

Actual draw

$50,000.00

Requested shortfall

$0.00

New combined LTV

61.7%

Remaining equity

$230,000.00

Line guidance

Combined loan-to-value is within a typical HELOC comfort zone for most lenders.

Phase-by-phase cost

Interest paid during draw period (120 months)

$46,250.00

Interest paid during repayment (180 months)

$42,627.31

Total repaid (principal + interest)

$138,877.31

Assumes the draw balance stays constant through the draw period and then amortizes at the repayment rate. A variable-rate HELOC can move either way from current terms.

Editorial noteReviewed by Julian German - Updated August 2026

EveryCalc calculators are designed for fast, practical estimates with transparent inputs and no required account. We use plain formulas, visible assumptions, and related tools so visitors can check the result from more than one angle.

Results are informational only. For financial, tax, legal, medical, construction, or other high-impact decisions, verify the output against primary sources or a qualified professional.

Learn more about our review process on the EveryCalc methodology page.

Calculation notes and example

HELOC availability and two-period payment model

Maximum modeled availability equals home value multiplied by the entered combined-loan-to-value limit, minus the current mortgage balance. The actual draw is capped at that amount. During the draw period, payment is modeled as interest only: draw balance multiplied by draw-period annual rate divided by 12. During repayment, the full draw is amortized at the entered repayment rate and term. Total interest adds draw-period interest to repayment payments minus principal. The model assumes the full draw is outstanding from day one and rates stay constant within each period.

Equity, draw, and repayment example

A $700,000 home, $420,000 mortgage, and 85% CLTV limit produce $175,000 of modeled availability. A $60,000 draw at 9% has a $450 interest-only payment. If that balance then amortizes at 9.5% over 15 years, payment rises to roughly $627 because principal must also be repaid. A variable-rate increase would raise both amounts.

HELOC terms to verify

  • Use the lender's CLTV limit and include every lien. Approval can be lower after appraisal, credit, income, occupancy, and line-minimum rules.
  • Confirm index, margin, adjustment frequency, lifetime cap, annual fee, early-closure fee, and whether payments are interest only during the draw.
  • The calculator does not model repeated draws or principal repayment during the draw period; use an expected average balance if the line will be used gradually.

Useful companion tools: Mortgage Calculator, Refinance Calculator, Closing Cost Calculator, and ADU Cost Calculator.

How to interpret the heloc result

Best use

Use the result as a planning number for comparing payments, rates, returns, tax reserves, or cash-flow choices before you request a quote or make a commitment.

Cross-check

Compare the answer with the contract, lender estimate, tax form, brokerage statement, payroll record, or invoice that will control the real-world outcome.

Watch for

Do not rely on a single optimistic rate, return, or fee assumption. Money pages work best when you run low, base, and high cases and keep professional advice separate from the estimate.

This page belongs to the Finance calculator library, so the answer should be read in the context of the decision you are modeling rather than as a universal rule.

Before relying on this heloc estimate

Most calculator mistakes come from the inputs, not the arithmetic. Use this short audit before you reuse the answer in a spreadsheet, quote, application, or important conversation.

Confirm source numbers

Match balances, rates, fees, taxes, income, and payment dates against the lender quote, payroll record, tax form, statement, invoice, or contract.

Separate cash flow from total cost

A lower monthly payment can still cost more over time if fees, interest, taxes, or a longer term are hidden in the structure.

Run conservative cases

Test at least one higher-cost or lower-return case before using the output for a purchase, refinance, investment, loan, or tax decision.

Rerun this page when the rate, price, term, fee, tax rule, income, expense, or expected holding period changes.

Sources used for this calculator

These primary or official references help define the rules, terminology, safety checks, or source documents behind this estimate. Source links were checked in July 2026. They do not turn the calculator output into a quote, appraisal, tax determination, or professional opinion.

How to Use

  1. Enter your current home value, mortgage balance, and the maximum combined loan-to-value ratio your lender allows.
  2. Add the amount you want to draw along with the expected draw-period interest rate.
  3. Set the length of the draw period and the repayment period, plus any different rate during repayment.
  4. Review the available line, interest-only payment during the draw period, repayment payment afterward, and total interest across both phases.

Frequently Asked Questions

How is a HELOC different from a home equity loan?

A HELOC is a revolving line of credit with a draw period and usually a variable rate, while a home equity loan is a lump-sum fixed-rate installment loan. A HELOC lets you pull funds over time; a home equity loan funds once at closing.

What does the draw period actually mean?

The draw period is the window — often five to ten years — when you can borrow against the line and typically make interest-only payments. Once it ends, the line closes to new draws and switches to an amortizing repayment schedule.

Why does combined loan-to-value matter?

Lenders cap the total of your first mortgage plus any HELOC at a percentage of home value, often 80% to 90%. A higher combined LTV limits how large the line can be and can tighten pricing or eligibility.

Can the HELOC payment actually go up?

Yes. Most HELOCs have a variable rate tied to an index, so the draw payment can rise if rates move. After the draw period, the switch to an amortizing repayment payment is usually a larger jump than any rate move alone.

Is this a lender approval result?

No. Actual approval, line size, and pricing depend on credit, income, property type, lender overlays, and final appraisal. Use this to pressure-test whether a HELOC fits the plan before talking to a lender.

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