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HELOC Calculator

U.S. only tools

A HELOC — home equity line of credit — is a credit line secured by your home. You can draw from it up to a lender-set limit, pay interest only on the amount you actually use, and the money typically comes with a lower rate than unsecured borrowing because the home backs the debt. This calculator shows how much credit your home supports, what a draw costs while you are still in the interest-only period, and what the payment looks like once the balance starts paying down.

HELOC Calculator - Danfio

https://danfio.com/tools/heloc-calculator/ - printed from this page

Currency: USD ($) - display only, nothing was converted

$

The current market value from the lender appraisal, not what you paid for the house. The credit line is sized from this number.

$

What you still owe on the first mortgage. Available credit is the CLTV cap times the home value, minus this.

The combined loan-to-value limit your lender applies. Many lenders stop at 80%; some go to 85–90%, and the number varies with the borrower, the lender and the market.

$

How much of the available credit you plan to borrow now. Pulling less than the cap keeps your payment lower.

HELOC rates are usually variable and track the prime rate. This is an illustrative starting point — enter the rate your lender quotes.

How long only interest (or the minimum) is due. When the draw period ends, the remaining balance starts amortizing.

How many years the balance left at the end of the draw period is spread over. A longer term lowers the payment and raises the total interest.

Results update as you type. Nothing leaves your device.

Currency symbol

Symbol only - nothing is converted and no exchange rate is used. Figures quoted in the explanation text stay as the sources publish them.

Monthly payment during repayment

$433.91

$50,000.00 drawn at 8.5% — $354.17 interest-only for the 10-year draw, then $433.91 over 20 years. $96,638.79 of interest in total.

Available credit
$160,000
Interest-only payment
$354.17 during the draw period
Repayment payment
$433.91
Total interest
$96,638.79

Credit line

Available credit
$160,000 80% CLTV cap minus the mortgage balance
Home value
$450,000
Mortgage balance
$200,000
CLTV cap
80% lender dependent
Credit being used
31.25% of the available credit

How the CLTV cap is used

  • Mortgage balance$200,000.00
  • Available credit$160,000.00

The two bands together sit at the CLTV cap when there is spare equity; a fully tapped line leaves no headroom.

Draw period — interest only

Interest-only payment
$354.17
Draw period
10 years 120 months
Interest during the draw
$42,500.00
Balance at repayment
$50,000 interest-only payments do not reduce the principal

Repayment phase

Monthly payment
$433.91
Repayment period
20 years 240 months
Repayment interest
$54,138.79
Principal repayment
$50,000 the balance from the draw period

Repayment amortization schedule

YearPaymentsInterestPrincipalBalance
Year 1$5,207$4,212$995$49,005
Year 2$5,207$4,124$1,083$47,922
Year 3$5,207$4,028$1,179$46,743
Year 4$5,207$3,924$1,283$45,460
Year 5$5,207$3,811$1,396$44,064
Year 6$5,207$3,687$1,520$42,544
Year 7$5,207$3,553$1,654$40,890
Year 8$5,207$3,407$1,800$39,089
Year 9$5,207$3,247$1,960$37,130
Year 10$5,207$3,074$2,133$34,997
Year 11$5,207$2,886$2,321$32,676
Year 12$5,207$2,681$2,526$30,149
Year 13$5,207$2,457$2,750$27,399
Year 14$5,207$2,214$2,993$24,407
Year 15$5,207$1,950$3,257$21,149
Year 16$5,207$1,662$3,545$17,604
Year 17$5,207$1,348$3,859$13,746
Year 18$5,207$1,007$4,200$9,546
Year 19$5,207$636$4,571$4,975
Year 20$5,207$232$4,975$0

The schedule covers the repayment phase only — during the draw period the balance stays flat and the payments are interest-only. Download the CSV for all 240 rows.

HELOC rates are usually variable and follow the prime rate, so the payment shown here can change when the rate moves. Confirm the margin, the rate cap and the reset schedule with your lender, and note that some plans let you make principal payments during the draw period — doing so shrinks the balance and cuts the interest you pay later.

Every result is computed in your browser. Nothing you type is uploaded, stored or shared, so you can change the home value, mortgage balance, CLTV cap, draw amount and rate freely and watch all three numbers — available credit, interest-only payment and repayment payment — update together.

About this heloc calculator

Second mortgages behave unlike a lump-sum loan: a home equity line of credit lets a borrower draw, repay and draw again up to a lender-set limit, paying interest only on what is actually used. This page shows the available credit, the interest-only draw cost and the payment once repayment begins.

The credit line follows conventional lending practice — a combined loan-to-value cap that is lender-dependent rather than statutory, commonly 80 percent and sometimes higher for strong borrowers — and the repayment phase uses the standard annuity formula shared by the other loan pages. Nothing here needs a sign-up, and the numbers you enter are never uploaded.

An estimate, not financial advice; your lender's Loan Estimate overrides it. Prime-rate movement, closing costs on the line, draw-period limits, lender-specific caps and the chance that the rate turns variable are all outside the model. The repayment phase also assumes one fixed rate for the whole term, and any lender fee charged on the line, an interest-only balloon or a rate floor sit outside it. Stress-test a materially higher rate before drawing against the line.

How this heloc calculator works

What a HELOC is

A HELOC is a line of credit against your home equity, rather than a lump-sum loan. During the draw period you can borrow up to the available credit, repay some or all of it, and borrow again — the minimum payment in this phase is often interest-only, so the balance you drew stays flat. At the end of the draw period the line closes and the outstanding balance is repaid over a set term like a regular loan.

Because the line is secured by your home, a HELOC usually carries a lower rate than a personal loan or credit card, but the home is at risk if you cannot repay — that trade-off is why the repayment math matters as much as the interest-only minimum.

How available credit is calculated

Available credit starts from the lender combined loan-to-value (CLTV) cap. The formula is home value × CLTV cap − current mortgage balance, and it is never more than the equity you actually hold. With a $450,000 home, a $200,000 mortgage and an 80% cap, that is $450,000 × 80% − $200,000 = $160,000 of available credit.

The cap is lender-dependent, not statutory. 80% is the most common HELOC ceiling, some lenders accept 85% to 90% for strong borrowers, and the precise number also depends on your credit, your income and the current owners you already owe elsewhere. Enter the cap your lender quotes — the calculator is set to 80% as the typical default.

The interest-only draw period

During the draw years your minimum payment covers only the interest that accrued on what you have drawn. Each month that is draw × annual rate ÷ 12. A $50,000 draw at an 8.5% rate costs about $50,000 × 8.5% ÷ 12 ≈ $354 a month in interest, and the $50,000 balance stays exactly where it is.

Because the balance does not move, the interest over the whole draw period is simple to state: draw × rate × draw years — $50,000 × 8.5% × 10 years = $42,500. Paying extra toward principal during the draw is almost always optional, and it is the fastest way to shrink the balance that will later be re-amortized.

Repayment phase and total interest

When the draw period ends, the remaining balance is paid down monthly over the repayment term using the same amortization formula as the rest of the loan calculators on this site: M = P × i / (1 − (1 + i)^−n). The total interest shown is both phases summed — the interest-only years plus the amortized repayment years.

This tool holds no snapshot of today prime rate, so the rate field is an illustrative default that you replace with your lender quote. If the rate in your contract is variable — as most HELOC rates are — the real payments move with the index, and you should stress-test a higher rate to see whether the minimum stays affordable.

Worked examples

Each example below was run through the calculator on this page when the site was built, so the numbers match what you see when you enter the same inputs.

Typical draw on an average home

Home value: $450,000.00 · Current mortgage balance: $200,000.00 · CLTV cap: 80% · Amount to draw: $50,000.00 · Interest rate: 8.5% · Draw period: 10 years · Repayment period: 20 years

Monthly payment during repayment

$433.91

$50,000.00 drawn at 8.5% — $354.17 interest-only for the 10-year draw, then $433.91 over 20 years. $96,638.79 of interest in total.

Available credit: $160,000 · Interest-only payment: $354.17 · Repayment payment: $433.91 · Total interest: $96,638.79

Available credit is $160,000 at the 80% cap, so a $50,000 draw stays well inside the line.

High equity, bigger draw

Home value: $600,000.00 · Current mortgage balance: $120,000.00 · CLTV cap: 80% · Amount to draw: $100,000.00 · Interest rate: 9% · Draw period: 10 years · Repayment period: 20 years

Monthly payment during repayment

$899.73

$100,000.00 drawn at 9% — $750.00 interest-only for the 10-year draw, then $899.73 over 20 years. $205,934.23 of interest in total.

Available credit: $360,000 · Interest-only payment: $750.00 · Repayment payment: $899.73 · Total interest: $205,934.23

At $360,000 of available credit the $100,000 draw is under a third of the line; the higher 9% rate shows how the interest-only payment scales.

Longer draw with a lower rate

Home value: $350,000.00 · Current mortgage balance: $100,000.00 · CLTV cap: 85% · Amount to draw: $40,000.00 · Interest rate: 7% · Draw period: 15 years · Repayment period: 10 years

Monthly payment during repayment

$464.43

$40,000.00 drawn at 7% — $233.33 interest-only for the 15-year draw, then $464.43 over 10 years. $57,732.07 of interest in total.

Available credit: $197,500 · Interest-only payment: $233.33 · Repayment payment: $464.43 · Total interest: $57,732.07

A 15-year draw spreads the interest-only years out, while the 10-year repayment term makes the amortized payment larger.

Tapping the cap

Home value: $300,000.00 · Current mortgage balance: $150,000.00 · CLTV cap: 80% · Amount to draw: $90,000.00 · Interest rate: 8% · Draw period: 5 years · Repayment period: 15 years

Monthly payment during repayment

$860.09

$90,000.00 drawn at 8% — $600.00 interest-only for the 5-year draw, then $860.09 over 15 years. $100,815.64 of interest in total.

Available credit: $90,000 · Interest-only payment: $600.00 · Repayment payment: $860.09 · Total interest: $100,815.64

Available credit is $90,000 at the 80% cap — the full line is in use, leaving no further headroom.

Asking for more than the cap allows

Home value: $300,000.00 · Current mortgage balance: $150,000.00 · CLTV cap: 80% · Amount to draw: $150,000.00 · Interest rate: 8% · Draw period: 5 years · Repayment period: 15 years

Monthly payment during repayment

$860.09

$90,000.00 drawn at 8% — $600.00 interest-only for the 5-year draw, then $860.09 over 15 years. $100,815.64 of interest in total.

Available credit: $90,000 · Interest-only payment: $600.00 · Repayment payment: $860.09 · Total interest: $100,815.64

Only $90,000 is available, so the calculator caps the draw at the line and sizes the payments on the lower amount.

Frequently asked questions

How much can I actually borrow with a HELOC?

Start from the lender CLTV cap: home value × cap minus your mortgage balances. On a $450,000 home with a $200,000 mortgage and an 80% cap that is $160,000. The lender then applies its own underwriting — credit score, income, other debts — and often offers less than the headline number, so treat the computed available credit as an upper bound, not a promise.

Why is the CLTV cap a range instead of one fixed number?

There is no statutory HELOC cap. 80% combined loan-to-value is the most common ceiling lenders cite, some go to 85% or 90% for qualified borrowers, and the actual offer depends on your credit profile and the local market. The 80% default on this calculator is the typical convention, and you should enter the cap your lender quotes.

Why is my payment interest-only during the draw period?

HELOC draw periods are built that way: the minimum payment covers only the interest that accrued, so the drawn balance stays flat while you retain the flexibility to pay it down or re-borrow. Paying only the minimum means the full principal arrives as a bigger amortized payment when the draw period ends.

What happens to my payment when the draw period ends?

You can no longer borrow, and the outstanding balance is repaid over the remaining term with a fully amortizing monthly payment that includes principal and interest. The calculator shows that payment as the repayment phase number, plus the years of monthly schedule behind it, so you can plan for the step-up.

Are HELOC rates really variable?

Most are. A typical HELOC is priced at the prime rate plus a fixed margin, so monthly payments move when the index moves. Some plans cap how much the rate can change at each adjustment. Enter your quoted rate here to see the shape of the payment, then re-run it at a higher rate to gauge how a rise changes the minimum.

Should I pay more than the interest-only minimum?

Usually, if you can. Extra principal during the draw period shrinks the balance that must be re-amortized, which cuts the repayment-phase interest directly and shortens how long the debt hangs over your home. The lower the drawn balance at the end of the draw, the smaller the payment step-up you face.

Assumptions and sources

  • CLTV / HELOC headroom: conventional lending practice — lenders commonly cap a HELOC after the first mortgage at 80% combined loan-to-value, sometimes 85–90%; the exact limit is lender, borrower and market dependent rather than a statutory figure.
  • Interest-only draw and amortized repayment structure: standard home equity line of credit terms as described in consumer-lending disclosures under the US Truth in Lending Act (Regulation Z).
  • Amortization formula: the standard annuity formula used by every loan calculator on this site. HELOC rates are variable and track the prime rate; this tool does not carry a current prime rate, so the rate field is a labeled illustrative default the visitor replaces with their lender quote.
  • Consumer guidance on home equity lines of credit, draw periods and variable rates: US Consumer Financial Protection Bureau.

Last reviewed 2026-10-04. An estimate, not financial advice; your lender's Loan Estimate overrides it. Read the full disclaimer.

Where a figure on this page comes from an official agency — HUD, IRS, FICO or a state body — the site keeps a dated snapshot of the source page in its sources library, and a scheduled job re-checks that snapshot, so the number can be traced back to the document it came from.

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