Free HELOC calculator. Calculate your maximum home equity line of credit limit, interest-only draw period payments, and repayment installments.
A HELOC calculator estimates your maximum home equity line of credit limit based on your home's value, existing mortgage balance, and lender's loan-to-value cap, then calculates your monthly payment during the interest-only draw period and the fully amortizing repayment period that follows.
120.000,00 €
Maximum HELOC limit
Last updated:
HELOC Calculator
A HELOC works in two distinct phases that produce very different monthly payments. During the draw period, you typically only pay interest on the amount you've borrowed, which keeps payments low and predictable but doesn't reduce your principal balance at all.
Once the draw period ends, the repayment period begins, and your remaining balance converts into a fully amortizing loan — meaning your payment now includes both principal and interest, calculated to pay off the balance completely by the end of the repayment term. This calculator shows both payment amounts so you can plan for the transition.
Combined Loan-to-Value
Lenders don't let you borrow against 100% of your home's value — they cap your total secured debt (existing mortgage plus HELOC) at a percentage of the home's appraised value, commonly 80% to 85%. This is called the combined loan-to-value ratio, or CLTV.
Your maximum HELOC limit is calculated by taking that CLTV cap of your home's value and subtracting whatever mortgage balance you still owe. The more equity you've built up — through paying down your mortgage or home value appreciation — the larger your available HELOC limit.
Interest-Only vs. Amortizing
The low interest-only payments during the draw period can create a false sense of affordability, since none of that payment reduces what you owe. Borrowers who draw the maximum amount and only make interest-only payments face a significant payment increase — sometimes doubling or more — once repayment begins.
Planning ahead for this transition, whether by making extra principal payments during the draw period or budgeting for the higher repayment-period payment well in advance, helps avoid payment shock when the structure of the loan changes.
Limitations
This calculator assumes a constant interest rate throughout both periods, but most HELOCs carry a variable rate that can change as benchmark rates move, which would change your actual payment amounts over time. It also assumes you draw the full amount upfront rather than gradually, which is a simplification of how most HELOCs are actually used.
It doesn't include closing costs, annual fees, or early termination fees that some lenders charge, all of which vary by lender and should be factored into your overall cost comparison when shopping for a HELOC.
Practical Use Cases
Planning a home renovation
Estimating how much you could borrow against your home equity to fund a project.
Comparing HELOC offers from lenders
Checking how different rates and CLTV caps affect your available limit and payments.
Budgeting for the repayment period
Understanding how much your payment will increase once the draw period ends.
Deciding between a HELOC and a home equity loan
Seeing what a revolving credit line would cost compared to a lump-sum loan.
Checking how much equity you've built
Seeing your available borrowing power based on your current mortgage balance and home value.
A Home Equity Line of Credit (HELOC) is a revolving credit line secured by your home, similar to a credit card but with your home equity as collateral. You can draw funds as needed up to your limit during the draw period, and typically pay interest only on the amount you've actually borrowed.
Lenders typically cap your combined mortgage and HELOC debt at a percentage of your home's value — commonly 80-85% combined loan-to-value (CLTV). Your maximum HELOC limit is that cap minus your current mortgage balance.
Most HELOCs only require interest-only payments during the draw period (commonly 5-10 years), which keeps early payments low. Once the repayment period begins, you must pay off the full outstanding balance, so payments jump to include both principal and interest.
Most HELOCs carry a variable interest rate tied to a benchmark rate like the prime rate, meaning your payment can change over time as rates move. Some lenders offer a fixed-rate option on all or part of the balance — this calculator assumes a constant rate for simplicity.
Yes — unlike a home equity loan, which is a one-time lump sum, a HELOC is revolving credit. You can pay down the balance and draw funds again up to your limit throughout the draw period, similar to how a credit card works.
The repayment period is structured so that regular payments fully amortize (pay off) the balance by the end of the term, similar to a standard loan. If you can't keep up with payments, you risk default, which can lead to foreclosure since a HELOC is secured by your home.