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HELOC Calculator

How big a home equity line of credit you could get, and what it costs a month: interest-only while you draw, then principal and interest once repayment starts.

With $500,000 of home and $250,000 owed, a lender allowing 85% could open a line of about $175,000. Drawing $50,000 at 8% costs $333.33 a month interest-only, then $418.22 a month over 20 years of repayment.

Credit line available
$175,000
Interest-only payment while drawing
$333.33
Payment once repayment starts
$418.22
Interest over the repayment period
$50,373

Today's prime rate →

Available line by home value and mortgage balance (85% combined loan-to-value)

Home value$150,000 owed$250,000 owed$350,000 owed
$300,000$105,000$5,000$0
$400,000$190,000$90,000$0
$500,000$275,000$175,000$75,000
$750,000$487,500$387,500$287,500

How this calculator works

Line = home value × the lender's combined loan-to-value limit − your mortgage balance.

During the draw period (often 10 years) many HELOCs require only interest: balance × rate ÷ 12. After it, the balance is repaid with interest over the repayment period.

What it assumes

  • The rate stays the same; HELOC rates are usually variable, the prime rate plus a margin.
  • The whole amount is drawn at once.

Questions people ask

How much can I borrow with a HELOC?

Usually up to 80% to 90% of your home's value minus what you owe. On a $500,000 home with $250,000 owed and an 85% limit, about $175,000.

What happens when the HELOC draw period ends?

You can no longer borrow, and payments switch to principal and interest, which can raise them sharply. Plan for the repayment payment, not just the interest-only one.

HELOC or home equity loan?

A HELOC is a variable-rate line you draw as needed; a home equity loan is a lump sum at a fixed rate with fixed payments. Both are secured by your home.

Is HELOC interest tax deductible?

Only if the money is used to buy, build or substantially improve the home that secures it, and you itemize, within the $750,000 mortgage limit.

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Sources

Updated by the RateHerald team. The maths is tested against worked examples; report a problem.

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