Enter your home value and mortgage balance to see how much you can borrow and what the payments would be. The calculator shows the interest-only payment during the draw period, the higher payment once repayment starts, and the total interest.
| Period | Payment | Interest |
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Know More: How the HELOC Calculator Works
Rates in late October 2026. The prime rate is 7.00% after the Federal Reserve held its target range at 3.75% to 4.00% on October 28, 2026, and the average HELOC rate was 7.36% (Bankrate; Federal Reserve).
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How HELOCs work
A home equity line of credit (HELOC) is a revolving credit line secured by your home, like a credit card with a much lower rate. You borrow what you need, when you need it, up to your limit, and pay interest only on what you've drawn.
- Rates are usually variable: prime rate plus a margin set by your credit and loan-to-value.
- Closing costs are often low or waived, though some lenders charge annual fees or require a minimum draw.
- Your home is the collateral, so falling behind can lead to foreclosure.
CLTV limits
Lenders limit your combined loan-to-value (CLTV): your mortgage plus the HELOC, divided by your home's value. Most allow 80% to 85%, and some up to 90% for strong borrowers.
Maximum credit line = home value × CLTV limit − mortgage balance
Example: a $450,000 home with a $250,000 mortgage and an 85% limit: $450,000 × 85% = $382,500, minus $250,000 = a $132,500 maximum line. At 80%, it's $110,000.
You'll typically also need a credit score of about 680 or higher and a debt-to-income ratio of 43% or less, including the new payment.
Draw period vs repayment period
- Draw period (often 10 years): you can borrow and repay freely, and many HELOCs require only interest payments. $50,000 at 7.36% costs $306.67 a month, but the balance doesn't go down.
- Repayment period (often 20 years): you can't draw more, and the balance is repaid with principal and interest: $398.53 a month on $50,000 at 7.36%.
The jump in payment when the draw period ends, called payment shock, catches many borrowers off guard, especially if rates have risen. Paying some principal during the draw period softens it.
HELOC vs home equity loan vs cash-out refinance
| Option | Best for |
|---|---|
| HELOC: credit line, variable rate | Costs that come in stages or are uncertain, like a renovation |
| Home equity loan: lump sum, fixed rate | One known expense, with a fixed payment |
| Cash-out refinance: new, larger mortgage | When the new mortgage rate is no higher than your current one |
If your current mortgage rate is low, a HELOC or home equity loan keeps it in place, while a cash-out refinance would replace your whole balance at today's rate.
Taxes: HELOC interest is deductible only if you itemize and use the money to buy, build or substantially improve the home that secures it, within the $750,000 mortgage debt limit, which the 2025 tax law made permanent.
Examples
At 7.36%, 10-year interest-only draw, 20-year repayment:
| Amount drawn | Draw / repay | Total interest |
|---|---|---|
| $25,000 | $153 / $199 | $41,223 |
| $50,000 | $307 / $399 | $82,447 |
| $100,000 | $613 / $797 | $164,893 |
Results are estimates, not financial advice; rates on most HELOCs change with the prime rate. Last reviewed: November 1, 2026.
HELOC Calculator FAQs
How much can I borrow with a HELOC?
Usually up to 80% to 85% of your home's value, minus your mortgage balance. With a $450,000 home, a $250,000 mortgage and an 85% limit, that's $132,500. Your credit score, income and debts also affect the limit.
Is HELOC interest tax deductible?
Only if you itemize and use the money to buy, build or substantially improve the home securing the loan, within the $750,000 total mortgage debt limit. Interest on HELOC money used for other things, like paying off credit cards, isn't deductible.
What is the monthly payment on a $50,000 HELOC?
At 7.36%, about $307 a month during an interest-only draw period, then about $399 a month for principal and interest over a 20-year repayment period. The payment changes if the variable rate changes.
What happens when the HELOC draw period ends?
You can no longer borrow, and you start repaying the balance with principal and interest, usually over 20 years, so the payment rises. Some HELOCs require a lump-sum balloon payment instead; check your agreement.
More home and loan calculators
- Refinance Calculator: compare a cash-out refinance
- Personal Loan Calculator: an unsecured alternative
- Home Affordability Calculator: how much house you can afford
- Debt-to-Income Calculator: the DTI lenders check