HELOC Payment Calculator

Estimate your HELOC credit limit, monthly payment during the draw period, repayment payment after the draw period ends, and total borrowing cost.

Loan Details

Home Value ($)

Current Mortgage Balance ($)

CLTV Limit (%)

Combined loan-to-value ratio, typically 80%

Draw Amount ($)

Annual Interest Rate (%)

Draw Period (Years)

Repayment Period (Years)

Closing Costs ($)

Results

Max Credit Line

$70,000

Available Credit: $20,000

Draw Period Payment

$354.17

Interest-only / month

Repayment Payment

$433.91

Principal + Interest / month

Cost Summary

Total Interest$96,639

Total Cost$96,639

Max Credit = $400000 × 80% − $250000 = $70000

Draw Payment = $50000 × (8.5%/12) = $354.17/mo

Repayment: M = P × [r(1+r)^n] / [(1+r)^n − 1]

P = $50000, r = 0.7083%, n = 240

= $433.91/mo

How HELOC Works

A Home Equity Line of Credit (HELOC) lets you borrow against the equity in your home up to an approved credit limit. Most lenders cap total borrowing at 80% to 85% CLTV, so your estimated HELOC limit is: Home Value × CLTV Limit − Current Mortgage Balance. If your home is worth $400,000, your lender allows 80% CLTV, and your mortgage balance is $250,000, your estimated HELOC limit is $70,000. If you want to check how much equity you have before borrowing, use our home equity calculator.

A HELOC usually has two stages: a draw period and a repayment period. During the draw period, often 5 to 10 years, you can borrow as needed up to your limit and usually make interest-only payments on the amount currently drawn. That keeps the starting payment lower than a standard loan, but it does not reduce your principal balance unless you choose to pay extra.

When the draw period ends, the repayment period begins. At that point, the balance converts into principal-and-interest payments over a fixed number of years, often 10 to 20. This is where many borrowers experience payment shock, because the monthly payment can rise sharply once principal repayment starts. Our calculator shows both phases side by side so you can compare your interest-only payment with your later repayment payment before you borrow.

HELOC rates are often variable, which means your payment can change if the prime rate changes. Lenders may also look at your credit score, debt-to-income ratio, income stability, and available equity before approving your line. HELOCs are commonly used for home improvements, debt consolidation, or large planned expenses, but because your home is collateral, it is worth comparing the cost and risk with a mortgage calculator or loan calculator before moving forward.

HELOC Monthly Payment Examples

These examples assume a 10-year draw period, a 20-year repayment period, and no closing costs. During the draw period the payment is interest-only; during repayment it includes principal and interest.

Draw amount	Rate	Draw-period payment	Repayment payment	Estimated total interest
$25,000	8.5%	$177.08/mo	$216.96/mo	$48,319
$50,000	8.5%	$354.17/mo	$433.91/mo	$96,639
$75,000	9.5%	$593.75/mo	$699.10/mo	$164,034

How Much HELOC Can You Borrow?

$400,000 home, $250,000 mortgage, 80% CLTV

$70,000

Maximum line equals $400,000 × 80% minus the existing $250,000 mortgage balance.

$600,000 home, $350,000 mortgage, 80% CLTV

$130,000

Higher home value creates more borrowing room even with a larger mortgage balance.

$400,000 home, $320,000 mortgage, 80% CLTV

At 80% CLTV, the current mortgage already reaches the lender's borrowing limit.

Frequently Asked Questions

What is CLTV and how does it affect my HELOC limit?

CLTV stands for Combined Loan-to-Value. It measures all debt secured by your home compared with your home's value. Most lenders limit total borrowing to about 80% to 85% CLTV. For example, if your home is worth $400,000 and the lender allows 80% CLTV, your total secured debt cannot exceed $320,000. If your current mortgage balance is $260,000, your estimated HELOC limit is about $60,000.

Why does a HELOC payment increase after the draw period?

During the draw period, many HELOCs require interest-only payments, so the monthly bill starts out lower. After the draw period ends, the remaining balance must be repaid over a shorter period with both principal and interest. That often causes a noticeable payment jump. This HELOC calculator is designed to show that difference clearly so you can estimate payment shock before you open the line.

How much HELOC can I qualify for?

The amount you may qualify for depends on your home value, mortgage balance, lender CLTV limit, credit score, debt-to-income ratio, and income. Many lenders want at least 15% to 20% equity and reserve their best rates for stronger credit profiles. This calculator gives you an estimate based on property value and loan balance, but your lender will use additional underwriting rules.

Is HELOC interest tax-deductible?

HELOC interest may be tax-deductible if the borrowed funds are used to buy, build, or substantially improve the home that secures the line of credit. Interest used for personal spending is generally not deductible. Tax treatment depends on your situation, so it is best to confirm with a tax professional.

How is a HELOC different from a home equity loan?

A HELOC is a revolving line of credit, which means you can draw funds as needed up to your limit during the draw period. A home equity loan gives you a lump sum upfront and usually has fixed monthly payments from the start. A HELOC offers more flexibility, while a home equity loan offers more predictable payments.

What credit score do I need for a HELOC?

Minimum credit score requirements vary by lender, but many HELOC lenders look for scores of at least 620 to 680, and stronger credit usually helps you qualify for lower rates. Lenders also review your debt-to-income ratio, available equity, and income documentation when deciding whether to approve your application.

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