USA: Mortgage & home
HELOC Calculator
Find how much equity you can tap with a home equity line of credit, and what it will cost. Enter your home value, mortgage balance and the lender's limit (often 80-90% of value). See the interest-only payment during the draw period and the higher payment when repayment begins.
How to use the HELOC Calculator
- Enter your home value and mortgage balance.
- Enter the lender's combined loan-to-value limit.
- Enter how much you want to borrow and the rate.
- Set the draw and repayment periods.
Formula
Example
A $450,000 home with $250,000 owed and an 85% limit allows a line of up to $132,500. Borrowing $50,000 at 8.25% costs about $344 a month interest-only.
HELOC vs home equity loan
- HELOC - variable rate, borrow as you need, interest-only option during the draw period
- Home equity loan - fixed rate, lump sum, fixed payment from day one
Use it carefully
Your home secures the line. HELOCs are best for things that add value, such as renovations, rather than everyday spending.
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Frequently asked questions
Is HELOC interest tax deductible?
Only when the money is used to buy, build or substantially improve the home that secures it, and you itemize.
Why can my payment change?
Most HELOC rates are variable and follow the prime rate.
What is the payment shock?
When the draw period ends, you start repaying principal too, so the payment can jump sharply.
What credit score do I need?
Many lenders look for 680 or higher and a DTI under 43%.
Results are estimates for planning, not financial advice. Confirm important decisions with a qualified professional. Your inputs stay in your browser and are not sent to Soft2Cloud.
Last updated: November 2026