Estimate your available home equity line of credit and project monthly payments during the draw and repayment periods. Enter your home value, mortgage balance, and HELOC terms to see how much you can borrow and what it will cost.
A Home Equity Line of Credit (HELOC) is a revolving credit line — like a giant credit card — secured by the equity in your home. You apply once, the lender approves a credit limit, and then you can draw against it as needed during the "draw period" (typically 10 years). After the draw period ends, the line closes and you enter the "repayment period" (typically 10–20 years), during which you pay back both principal and interest on whatever balance remains.
The mechanics are different from a fixed home equity loan (which is a lump-sum loan amortized from day one). A HELOC is more like a credit card: you only owe interest on what you've actually drawn, the rate is typically variable (often Prime + a margin), and you can draw, repay, and re-draw repeatedly during the draw period. During the draw years, payments are often interest-only — which makes the monthly cost very low but means you're not chipping away at the principal.
This calculator estimates your available credit (based on home value, mortgage balance, and lender LTV cap), shows what an example draw would cost monthly during the draw period (interest-only) and during the repayment period (fully amortizing), and highlights the "payment shock" when the two phases transition. Use it to test whether a HELOC is the right tool, and to plan around the eventual repayment ramp.
$500,000 home, $300,000 mortgage, 85% CLTV cap → $125,000 HELOC available. Drawing $40,000 at 8.5%, 10-year draw / 20-year repayment. Draw-period payment (interest-only): $283/mo Repayment-period payment (full amortization): $347/mo Total interest paid over life: ≈ $43,400 Used for a $40,000 kitchen renovation, the after-renovation home is worth more than $500K, often by close to the renovation cost. Total interest of $43K on a 30-year ramp is meaningful — consider paying down faster.
$600,000 home, $200,000 mortgage, 80% CLTV cap → $280,000 HELOC available. Drawing $100,000 at 9.0% to consolidate credit card and personal loan debt. Draw period (10 years, interest only): $750/mo Repayment period (15 years): $1,015/mo Payment shock at year 10: +$265/mo Total interest over the life: ≈ $87,000. Compared to credit cards at 22%, this saves enormous interest. But the home is now collateral — missed payments can lead to foreclosure, unlike unsecured credit card default.
$700,000 home, $400,000 mortgage, 85% CLTV → $195,000 HELOC. Drawing $195,000 at 8.5%, 10-year draw / 10-year repayment (shorter). Draw period: $1,381/mo (interest only) Repayment period: $2,416/mo (full amortization) Payment shock: +$1,035/mo at year 10 That is a dramatic payment increase. A household able to handle $1,381 may not be able to handle $2,416. Always model the repayment-period payment, not the draw-period payment, when deciding whether to draw the full amount.
Use this calculator when considering a HELOC for home improvement, debt consolidation, education funding, business capital, or as a standby emergency reserve. The flexibility of a HELOC (only pay interest on what you use, redraw as needed) makes it well-suited to projects with uncertain or staged funding needs.
A HELOC is most appropriate when: (1) you have substantial home equity and a manageable existing mortgage, (2) the use of funds is for an appreciating or value-creating purpose (home improvement, debt consolidation at a lower rate, business investment), and (3) you have a clear plan for the repayment-period payment, not just the draw-period payment.
It is less appropriate when: (1) you might use it for ongoing discretionary spending (vacations, lifestyle), (2) home values are volatile and you could end up owing more than the home is worth, (3) you cannot reliably afford the repayment-period payment, or (4) you might lose the home to a missed payment — HELOC defaults can trigger foreclosure since the home is collateral.
Pair this calculator with the home-equity calculator (for lump-sum fixed-rate alternative), the mortgage-refinance calculator (sometimes a cash-out refi is cheaper than a HELOC), the personal-loan calculator (for unsecured comparison), and the debt-consolidation calculator if the purpose is to consolidate high-interest unsecured debt.
Tax note: under current law (TCJA, 2018–2025), HELOC interest is deductible only when the funds are used to "buy, build, or substantially improve" the home that secures the loan — not for general personal use. Always confirm with a tax professional.
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Most lenders cap at 80-85% combined LTV
Max Available Credit
$132,500
Interest-Only Payment
$354
During draw period
Full Payment
$434
During repayment
Total Interest
$96,639
| Year | Phase | Payment | Interest | Principal | Balance |
|---|---|---|---|---|---|
| 1 | Draw | $354.17 | $4,250.00 | $0.00 | $50,000.00 |
| 2 | Draw | $354.17 | $4,250.00 | $0.00 | $50,000.00 |
| 3 | Draw | $354.17 | $4,250.00 | $0.00 | $50,000.00 |
| 4 | Draw | $354.17 | $4,250.00 | $0.00 | $50,000.00 |
| 5 | Draw | $354.17 | $4,250.00 | $0.00 | $50,000.00 |
| 6 | Draw | $354.17 | $4,250.00 | $0.00 | $50,000.00 |
| 7 | Draw | $354.17 | $4,250.00 | $0.00 | $50,000.00 |
| 8 | Draw | $354.17 | $4,250.00 | $0.00 | $50,000.00 |
| 9 | Draw | $354.17 | $4,250.00 | $0.00 | $50,000.00 |
| 10 | Draw | $354.17 | $4,250.00 | $0.00 | $50,000.00 |
| 11 | Repayment | $433.91 | $4,211.82 | $995.11 | $49,004.89 |
| 12 | Repayment | $433.91 | $4,123.87 | $1,083.07 | $47,921.81 |