HELOC & Home Equity Loan Calculator

Calculate your equity borrowing power based on appraisal values and primary debt. Simulate draw phase and repayment phase obligations side-by-side.

Currency

Home Value & Debt

Home valuation

Primary mortgage balance

Maximum combined LTV limit

HELOC Parameters

HELOC credit line limit

Planned draw amount

Rates & Terms

Draw period term

years

Repayment period term

years

Draw rate (Interest-only)

% APR

Repayment rate (Amortized)

% APR

Equity Limit (Max)

$110,000.00

Approved Limit

$50,000.00

Monthly Draw Payment

$187.50

Monthly Repay Payment

$286.70

With a home worth $450,000 and a primary debt of $250,000, your maximum equity borrowing power at 80% CLTV is $110,000.00. You are approved for a line of credit of $50,000.00. Drawing $30,000.00 requires interest-only payments of $187.50 during the 10-year draw phase. During the subsequent 15-year repayment phase, the monthly payment rises to $286.70 to fully amortize the balance.

Monthly Repayment$286.70

Repayment Schedule

Yearly breakdown of HELOC draw interest-only phase and repayment amortizing phase
Year	Phase	Starting Balance	Total Paid	Interest Paid	Principal Repaid	Ending Balance
1	Draw (Interest-only)	$30,000.00	$2,250.00	$2,250.00	$0.00	$30,000.00
2	Draw (Interest-only)	$30,000.00	$2,250.00	$2,250.00	$0.00	$30,000.00
3	Draw (Interest-only)	$30,000.00	$2,250.00	$2,250.00	$0.00	$30,000.00
4	Draw (Interest-only)	$30,000.00	$2,250.00	$2,250.00	$0.00	$30,000.00
5	Draw (Interest-only)	$30,000.00	$2,250.00	$2,250.00	$0.00	$30,000.00
6	Draw (Interest-only)	$30,000.00	$2,250.00	$2,250.00	$0.00	$30,000.00
7	Draw (Interest-only)	$30,000.00	$2,250.00	$2,250.00	$0.00	$30,000.00
8	Draw (Interest-only)	$30,000.00	$2,250.00	$2,250.00	$0.00	$30,000.00
9	Draw (Interest-only)	$30,000.00	$2,250.00	$2,250.00	$0.00	$30,000.00
10	Draw (Interest-only)	$30,000.00	$2,250.00	$2,250.00	$0.00	$30,000.00
11	Repayment (Amortized)	$30,000.00	$3,440.40	$2,360.98	$1,079.42	$28,920.58
12	Repayment (Amortized)	$28,920.58	$3,440.40	$2,271.38	$1,169.02	$27,751.56

Understanding HELOC Phases

Unlike traditional loans, a HELOC splits your borrowing and repayment timelines to offer flexible liquidity:

Combined Loan-to-Value (CLTV): Lenders cap total home debt (primary mortgage + HELOC limit) at a maximum percentage (typically 80%) of the appraisal value.
Draw Phase: A multi-year window (usually 5 to 10 years) where you pay interest only on outstanding balances. You can draw money as needed.
Repayment Phase: A subsequent period (usually 10 to 20 years) where the credit line is locked, and the balance is amortized into equal principal and interest payments.

Frequently asked questions

How does a HELOC work?

A Home Equity Line of Credit (HELOC) is a revolving line of credit backed by the equity in your home. It has two phases: the Draw Phase (usually 10 years) where you can borrow money and pay interest-only on what you draw, and the Repayment Phase (usually 15-20 years) where the line closes and you pay fully amortizing payments of principal and interest.

How much can I borrow with a HELOC?

Most lenders allow you to borrow up to 80% to 85% of your home's appraised value, minus your remaining primary mortgage balance. For example, if your home is worth $400,000 and your mortgage is $200,000, an 80% LTV limit allows a maximum line of credit of $120,000.

What is the difference between a HELOC and a Home Equity Loan?

A HELOC is a revolving line of credit with variable interest rates, allowing you to borrow, repay, and borrow again. A Home Equity Loan is a one-time lump-sum loan with a fixed interest rate and fixed monthly payments, similar to a second mortgage.