Free HELOC Calculator
Calculate your available HELOC credit line and the interest-only payment during the draw period. Free. No signup required.
- Available Credit Line$162,500.00
- Amount You Plan to Draw$40,000.00
You're planning to draw $40,000.00 of the $162,500.00 credit line available to you.
- Interest-Only Payment (draw period)$300.00
HELOC rates are variable — this payment will change if the rate changes. Repayment-period payments are higher once principal is included.
About the Free HELOC Calculator
A HELOC doesn't hand you a lump sum the way a home equity loan does — it opens a revolving credit line against your home's equity that you draw from as needed, much like a credit card but secured by your house and priced far lower. This calculator estimates two things: the credit line a lender would likely approve based on your home value and mortgage balance, and the interest-only payment you'd owe on whatever you've actually drawn during the draw period.
It's useful for homeowners who don't want to borrow a fixed amount upfront — someone financing a renovation in phases, or wanting a standing cushion of available credit for expenses that haven't fully materialized yet.
Because a HELOC application usually means a hard credit pull and a formal appraisal, running your numbers here first — privately, with nothing sent off your device — is a way to gut-check whether it's even worth starting that process.
How it’s calculated
Available credit uses the same loan-to-value math a lender applies: your home's value times their maximum combined loan-to-value percentage, minus your existing mortgage balance. The payment shown is interest-only on the amount you've drawn, because that's how most HELOCs bill during the draw period — once that period ends, the loan converts to a repayment schedule that includes principal, and the payment rises accordingly.
Frequently asked questions
What happens to my HELOC payment when the draw period ends?
It typically jumps, sometimes substantially, because payments switch from interest-only to fully amortizing principal-and-interest over the remaining repayment period. Ask your lender for that specific repayment-period payment estimate before you rely on the interest-only number long-term.
Is a HELOC rate always variable?
Almost always, yes — HELOCs are typically tied to a benchmark rate like the prime rate, so your payment can rise or fall as that benchmark moves, unlike a fixed-rate home equity loan. Some lenders offer a fixed-rate conversion option on all or part of the balance.
How much can I borrow with a HELOC?
Your credit line is generally capped by your lender's maximum combined loan-to-value, typically 80-85% of your home's value minus your existing mortgage — the same ceiling this calculator applies. Your income and credit profile also factor into final approval.
What's the difference between a HELOC and a home equity loan?
A HELOC is a revolving line you draw from over time at a variable rate; a home equity loan disburses one fixed amount upfront at a fixed rate with a fixed payment. Use a HELOC when you're unsure of the total you'll need, and a home equity loan when you know the exact amount and want payment certainty.
Can my HELOC credit line be reduced or frozen by the lender?
Yes — lenders can reduce or freeze a HELOC if your home's value drops significantly or your financial situation changes, since it's a form of open-ended credit rather than a fixed disbursed loan. This is worth knowing before treating a HELOC as a guaranteed source of funds.
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