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HELOC Calculator

See how much you could borrow with a home equity line of credit, the interest-only payment while you draw on it, and the payment once you start repaying it.

$

What it would sell for

$
$
%

Prime plus your lender’s margin

More options· 10 years interest only, then 20 to repay
years

The draw period

years

0 to keep paying interest only

You could borrow up to

$120,000

85% of your home’s value, less your mortgage: a common lender limit.

Interest only on $50,000
$292/mo
Repaying over 20 years
$388/mo
Total interest
$78,036

What this means

A HELOC is a line of credit secured on your home: you draw what you need and pay interest only on what you’ve used. The rate is variable, so it moves with the prime rate. The prime rate was 7.00% on 23 October 2026 (Federal Reserve).

When the draw period ends, the payment jumps from $292 to $388 a month as you start repaying what you owe. Plan for it from the start. Because your home is the security, you could lose it if you can’t keep up the payments.

Next step

How it’s worked out

85% of your home’s value$340,000
Less your mortgage−$220,000
You could borrow$120,000

Your home

Who owns what
  • Mortgage$220,000
  • HELOC$50,000
  • Equity left$130,000
Assumptions in this estimate
  • Lenders set their own limits; 85% of the home’s value is a common one, not a rule.
  • The rate stays at 7% throughout; in practice it changes with the prime rate.
  • Lenders also check your income, credit and other debts, and may charge appraisal or annual fees.
  • HELOC interest is tax-deductible only if you itemize and use the money to buy, build or substantially improve the home that secures it.
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How the calculator works

  1. How much you could borrow: 85% of your home’s value, less your mortgage.
  2. While you draw: the interest-only payment on what you borrow.
  3. Once you repay: the monthly payment to clear it over the repayment period, and the total interest.

Example

On a $400,000 home with $220,000 left on the mortgage, you could borrow up to $120,000. Borrowing $50,000 at 7.00%, you’d pay about $292 a month in interest for the 10-year draw period, then $388 a month for 20 years to repay it, a rise of 33%. That’s $78,036 of interest in all.

How much you could borrow

On a $400,000 home, the most you could borrow at each lender limit:

Mortgage left 80% limit85% limit90% limit
$100,000 $220,000$240,000$260,000
$200,000 $120,000$140,000$160,000
$300,000 $20,000$40,000$60,000

Lenders add your mortgage and the HELOC together and keep the total within a share of your home’s value, often 80% to 90%. They also look at your credit score, income and other debts, and usually want an appraisal.

Payments on common amounts

At 7.00%, a month:

Borrow First 10 years, interest only Next 20 years Total interest
$25,000 $146 $194 $39,019
$50,000 $292 $388 $78,036
$75,000 $438 $581 $117,055
$100,000 $583 $775 $156,071

These use the prime rate. Your lender adds a margin, and the rate moves when prime does, so your payments can rise or fall.

HELOC, home equity loan or cash-out refinance?

  • HELOC: borrow as you need, up to a limit, at a variable rate. It suits costs spread over time, like a renovation.
  • Home equity loan: a lump sum at a fixed rate, with fixed payments. It suits one known cost.
  • Cash-out refinance: a new, bigger mortgage that pays off the old one and gives you the difference. It can make sense if mortgage rates are below your current rate, but it replaces your whole mortgage and comes with closing costs. The refinance calculator helps you compare.

Before you borrow against your home

  • Your home is the security: if you can’t keep up the payments, you could lose it.
  • Plan for the jump: the payment rises when the draw period ends.
  • Rates can rise: a variable rate goes up with the prime rate.
  • Use it for things that last: repairs and improvements, or replacing much more expensive debt, rather than everyday spending.

Learn more

See the debt payoff calculator, the personal loan calculator, and how to pay off debt.

Last updated

Frequently asked questions

How much can I borrow with a HELOC?

Many lenders let you borrow up to 85% of your home’s value, less what you owe on your mortgage. On a $400,000 home with $220,000 left on the mortgage, that’s up to $120,000. Some lenders go to 90%, others stop at 80%.

How are HELOC payments worked out?

During the draw period, often 10 years, you usually pay only the interest on what you’ve borrowed. Then the repayment period starts, often 20 years, and you repay what you owe with interest, so the payment rises sharply.

What happens when the draw period ends?

You can no longer borrow, and you start repaying what you owe with interest. On $50,000 at 7%, the payment goes from about $292 to $388 a month. Some HELOCs ask for the whole balance at once instead, so check your agreement.

What is the HELOC interest rate?

Usually the prime rate plus a margin set by your lender, based on your credit and how much of your home you borrow against. The rate is variable, so it changes when the prime rate does.

Is HELOC interest tax-deductible?

Only if you itemize deductions and use the money to buy, build or substantially improve the home that secures it. Interest on money used for anything else, such as paying off cards, isn’t deductible.

Can I pay off a HELOC early?

Usually, yes, and paying down what you owe during the draw period cuts the interest. Some lenders charge a fee if you close the line within the first few years, so check your agreement.

HELOC or home equity loan?

A home equity loan gives you a lump sum at a fixed rate with fixed payments. A HELOC lets you borrow as you need, at a variable rate. A loan suits one known cost; a HELOC suits costs spread over time, like a renovation.