HELOC Calculator
Adjust the inputs below. Results update as you type.
How it works
HELOCs have variable rates tied to prime rate + margin. Draw period (typically 10 years): interest-only payments on the amount used. Repayment period (10–20 years): principal + interest on the remaining balance. Maximum line = (home value × LTV limit) − current mortgage balance. LTV limits are typically 80–85%. Rate changes can significantly affect payments—model worst-case scenarios.
Input guidance
- Use realistic rates from lender or provider quotes instead of headline averages.
- Model conservative, baseline, and optimistic scenarios before deciding.
- Include recurring real-world costs (fees, taxes, insurance, maintenance) where relevant.
The formula
A HELOC has a draw period (interest-only or minimum payments on what you borrow at a variable rate) followed by a repayment period where principal and interest amortize.
Worked example
On a $50,000 HELOC at 9%, drawing $20,000 costs about $150/month in interest during the draw period; once repayment begins, payments rise to include principal.
More examples to test
- Conservative case: use a higher interest rate and lower growth assumptions to stress-test affordability.
- Optimistic case: use a lower rate with stable income assumptions to compare upside potential.
How to interpret results
Treat this as a planning model, not a final approval tool. Compare at least two scenarios and focus on total-cost and cash-flow trade-offs.
When this can be inaccurate
Results can diverge due to fees, changing rates, tax rules, lender policies, and behavior changes that simplified models cannot fully capture.
Change history
- July 2026: Quality-reviewed for publication with formula checks and explanatory copy updates.
Site-wide corrections also appear on the corrections log.
Frequently asked questions
How does a HELOC work?+
It is a revolving credit line secured by your home. You borrow as needed up to a limit during the draw period, then repay over the repayment period.
Is the rate fixed?+
Usually variable, tied to a benchmark like the prime rate, so payments can rise if rates increase — a key risk to plan for.
What can I use it for?+
Commonly home improvements, debt consolidation, or emergencies. Because your home secures it, use it carefully and avoid overborrowing.
How should I use this result?+
Treat it as a planning estimate. Compare at least two realistic scenarios, then confirm with statements, quotes, or a qualified professional before acting.
How often should I refresh assumptions?+
Refresh whenever rates, income, costs, or policy limits change materially, and before making irreversible commitments.