AllCalciHub logo AllCalciHub
Finance

HELOC Calculator

Calculate your HELOC credit limit, monthly interest-only payment, and available credit.

What is HELOC Calculator?

A HELOC (Home Equity Line of Credit) calculator estimates the credit limit available based on your home value and mortgage balance, your monthly interest-only payment during the draw period, and how much credit remains available after your current balance.

How to use

  1. 1 Enter your home's current market value.
  2. 2 Enter your outstanding mortgage balance.
  3. 3 Enter the annual interest rate on the HELOC.
  4. 4 Enter the current balance you've drawn from the line.
  5. 5 See your credit limit, monthly interest payment, and available credit instantly.

Formula

Max credit = home value × 85% − mortgage balance. Monthly interest = drawn balance × (annual rate / 12). Available credit = credit limit − drawn balance.

Example calculation

Home value $400,000, mortgage $220,000. Credit limit = $340,000 − $220,000 = $120,000. Draw $40,000 at 8.75% rate: monthly interest = $40,000 × 0.729% ≈ $292/month.

Frequently asked questions

What is a HELOC draw period?

The draw period is typically 10 years, during which you can borrow, repay, and borrow again — like a credit card. You usually make interest-only payments during this period. After it ends, the repayment period begins (typically 10–20 years).

How is a HELOC rate determined?

Most HELOCs have variable rates tied to the prime rate plus a margin. When the Fed raises rates, your HELOC rate — and payment — increases. Some lenders offer fixed-rate HELOC options.

Can I use a HELOC to pay off debt?

Yes, and it's a common strategy since HELOC rates are lower than credit card rates. However, you're converting unsecured debt to debt secured by your home, which increases foreclosure risk if you can't repay.

Is HELOC interest tax deductible?

Only if the funds are used to buy, build, or substantially improve your primary or second home. Using HELOC funds for personal expenses, vacations, or non-home debt payoff is not deductible.

What happens when the draw period ends?

You can no longer borrow, and the full balance begins amortizing over the repayment period. Payments increase significantly since you're now paying both principal and interest. Plan ahead for this transition.