HELOC Calculator
A HELOC (Home Equity Line of Credit) lets you borrow against your home equity at a variable rate. In 2026, most lenders allow up to 85% combined LTV. This calculator shows your maximum credit line, draw-phase interest-only payments, repayment-phase amortized payments, and total interest cost for any draw amount and term.
How a HELOC Is Calculated
A HELOC has two distinct phases. During the draw period, you pay interest only on what you borrow: Monthly Interest = Balance × (APR / 12). During the repayment period, the balance converts to a fully amortizing loan using the standard amortization formula. The maximum credit line is based on your combined LTV ratio.
Example: $450,000 home, $280,000 mortgage, $50,000 draw at 8.5% APR. Draw phase: $354/mo interest only. Repayment phase (20 years): $434/mo. Total interest over the full term: ~$54,160 — about 108% of the original draw amount.
2026 HELOC Rate Tiers by Credit Score
| Credit Score | Typical Rate (Prime + Margin) | Notes |
|---|---|---|
| 760+ | 8.50–9.00% | Prime + 0–0.5% |
| 720–759 | 9.00–9.75% | Prime + 0.5–1.25% |
| 680–719 | 9.75–10.75% | Prime + 1.25–2.25% |
| 640–679 | 10.75–11.75% | Prime + 2.25–3.25% |
| Below 640 | Often declined | Lender-dependent |
Rates as of mid-2026. Prime Rate = 8.50%. Rates vary by lender, CLTV, and property type.
💡 Pro Tip: Watch the Repayment Cliff
The #1 HELOC mistake is forgetting the repayment phase payment spike. A $80,000 HELOC at 8.5% costs only $567/mo in interest-only draw-phase payments — but the repayment phase jumps to ~$694/mo for 20 years. Budget for the higher payment before you hit the draw-period end date. Also: HELOC rates are variable. A 1% rate increase adds ~$67/mo on an $80k balance. Keep 20–30% of your available credit undrawn as a liquidity buffer.
HELOC Calculator
Your Home Equity
Results
Equity Position
Repayment Schedule (first 24 months)
| Mo | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
| 1 | $433.91 | $79.74 | $354.17 | $49,920 |
| 2 | $433.91 | $80.31 | $353.60 | $49,840 |
| 3 | $433.91 | $80.88 | $353.03 | $49,759 |
| 4 | $433.91 | $81.45 | $352.46 | $49,678 |
| 5 | $433.91 | $82.03 | $351.88 | $49,596 |
| 6 | $433.91 | $82.61 | $351.30 | $49,513 |
| 7 | $433.91 | $83.19 | $350.72 | $49,430 |
| 8 | $433.91 | $83.78 | $350.13 | $49,346 |
| 9 | $433.91 | $84.38 | $349.53 | $49,262 |
| 10 | $433.91 | $84.98 | $348.94 | $49,177 |
| 11 | $433.91 | $85.58 | $348.33 | $49,091 |
| 12 | $433.91 | $86.18 | $347.73 | $49,005 |
| 13 | $433.91 | $86.79 | $347.12 | $48,918 |
| 14 | $433.91 | $87.41 | $346.50 | $48,831 |
| 15 | $433.91 | $88.03 | $345.88 | $48,743 |
| 16 | $433.91 | $88.65 | $345.26 | $48,654 |
| 17 | $433.91 | $89.28 | $344.63 | $48,565 |
| 18 | $433.91 | $89.91 | $344.00 | $48,475 |
| 19 | $433.91 | $90.55 | $343.36 | $48,384 |
| 20 | $433.91 | $91.19 | $342.72 | $48,293 |
| 21 | $433.91 | $91.84 | $342.08 | $48,201 |
| 22 | $433.91 | $92.49 | $341.43 | $48,109 |
| 23 | $433.91 | $93.14 | $340.77 | $48,016 |
| 24 | $433.91 | $93.80 | $340.11 | $47,922 |
Based on your results — what to do next:
Check your total mortgage picture
Your combined debt after drawing $50,000 is $330,000 on a $450,000 home (73.33% LTV). Run your first mortgage to see total payoff costs.
Planning to buy a bigger home?
After tapping $50,000 in equity, your remaining equity is $120,000 — that's your potential down payment on a future home purchase.
Pay off high-interest debt with HELOC?
At 8.50%, your HELOC rate is likely lower than credit cards (18–25%). See how fast debt consolidation via HELOC saves on total interest.
HELOC FAQ
How long does it take to get a HELOC?
Typically 2–6 weeks from application to funding. The process includes an appraisal (or AVM), title search, underwriting, and closing. Some online lenders offer expedited timelines of 5–10 days. Be prepared to provide income documentation, tax returns (2 years), and mortgage statements. Unlike a cash-out refinance, HELOC closing costs are usually lower ($500–$1,500 vs. 2–5% of the loan amount).
Can I use a HELOC to pay off credit card debt?
Yes, and it's mathematically compelling: replacing 22–25% credit card debt with an 8.5–10% HELOC saves thousands in interest. However, the key risk is converting unsecured debt to secured debt. If you default on a HELOC, you could lose your home. Many financial advisors recommend only using a HELOC for debt consolidation if you've addressed the underlying spending habits. Note: HELOC interest on debt consolidation is NOT tax deductible (funds must be used for home improvement).
What happens if home values drop?
If your home value falls and your CLTV exceeds the lender's limit, the lender can freeze or reduce your available credit line (even if you haven't borrowed up to it). This happened widely in 2008–2010. Lenders can also accelerate the balance to due-and-payable if the value drops severely. This is one reason financial experts recommend keeping CLTV below 80% where possible — it provides a buffer against value declines.
Should I get a HELOC or a home equity loan?
A home equity loan gives you a fixed lump sum at a fixed rate — predictable payments, good for one-time large expenses like a renovation. A HELOC is a revolving line — flexible, interest-only draws, variable rate. Choose a home equity loan if you need a specific amount and want rate certainty. Choose a HELOC if you want flexibility, expect to draw in stages (like a renovation over 18 months), or want the option to pay down and redraw. In 2026, home equity loan rates (fixed) are typically 9.0–11.0% vs. HELOC variable rates of 8.5–11.5%.