HELOC & Home Equity Calculator
Calculate your maximum borrowable equity, interest-only draw payments, and full repayment schedule.
HELOC Parameters
Max credit limit: $160,000
Max Borrowable Line
Selected draw: $80,000
Draw Period
Interest-Only
$566.67
120 months at draw rate
Repayment Period
Principal + Interest
$719.78
240 months at repayment rate
Draw Payment
$566.67
Interest-Only
Repayment Payment
$719.78
Principal + Interest
Total Interest
$160,747
Draw + Repayment
CLTV
62.2%
Combined LTV
Payment Transition
Shows the jump in monthly payment when the repayment period begins.
How HELOC Draw Periods vs. Repayment Periods Work
A Home Equity Line of Credit (HELOC) has two distinct phases. During the draw period (typically 5 to 15 years), you can borrow against your line of credit and pay only the interest on the outstanding balance each month — no principal is required. This keeps payments low but the balance never decreases. When the draw period ends, the repayment period begins (typically 10 to 30 years): the line is frozen, and you must pay both principal and interest each month until the balance reaches zero. This is when payments jump significantly, because you are now amortizing the full borrowed amount over the remaining term.
Combined Loan-to-Value (CLTV) Calculation Rules
Max Credit Limit
Max Credit = (Home Value × Max LTV%) − Current Mortgage BalanceCombined Loan-to-Value
CLTV = ((Mortgage Balance + HELOC Amount) ÷ Home Value) × 100Most lenders cap your CLTV at 80%, meaning your first mortgage plus your HELOC cannot exceed 80% of your home's appraised value. For example, on a $500,000 home with a $250,000 mortgage, your maximum HELOC at 80% CLTV would be $150,000. Some lenders go to 85% or 90% CLTV, but typically charge higher interest rates for the increased risk.
Fixed-Rate vs. Variable-Rate HELOC Risks
Variable Rate (Standard HELOC)
Most HELOCs have variable rates tied to the prime rate. Your draw-period payment can rise or fall each month. If rates climb, both your draw payment and eventual repayment payment increase — sometimes dramatically. Budget for rate increases of 2-3% above your starting rate.
Fixed-Rate Option
Some lenders let you convert all or part of your variable balance to a fixed-rate loan during the draw period. This locks in a rate but typically requires a separate fixed-rate payment on the converted portion. It protects against rising rates but may have higher starting rates and conversion fees.