Home Equity Line of Credit (HELOC) Calculator

Home equity is the largest financial asset most Americans own — and it sat largely inaccessible until home values surged. According to the Federal Reserve's 2024 Survey of Consumer Finances, median homeowner net worth is roughly 40 times that of renters, driven largely by home equity accumulation. A HELOC lets you tap that equity as a revolving credit line without refinancing your first mortgage. In 2026, HELOC rates are tied to the prime rate (approximately 8.5%) and range from 8.0% to 9.5% for qualified borrowers. The variable rate structure creates payment risk that a fixed home equity loan does not. And the interest-only draw period masks the full cost: when repayment begins, monthly payments can jump 40% to 60% above interest-only amounts. This calculator models your available credit line, draw period payments, repayment period payments, and total interest cost so you understand the full financial commitment before drawing a single dollar.

This HELOC calculator estimates the maximum credit line available based on your home value, existing mortgage balance, and lender combined loan-to-value (CLTV) limit (typically 80% to 85%). It then calculates interest-only monthly payments during the draw period, fully amortized principal-and-interest payments during the repayment period, the payment difference (shock amount) when repayment begins, and total interest cost over the full HELOC life. Use it to evaluate whether a HELOC is the right financing vehicle for your renovation, debt consolidation, or investment need.