HELOC Calculator: How Much Can You Borrow From Your Home Equity?

Table of Contents

• HELOC Calculator
• How Much Can You Borrow With a HELOC?
• Understanding Combined Loan-to-Value (CLTV)
• Draw Period vs. Repayment Period Payments
• Factors That Affect Your HELOC Limit
• Current HELOC Rates
• How to Maximize Your HELOC Borrowing Power
• Frequently Asked Questions

Want to know how much you can borrow against your home equity? A home equity line of credit (HELOC) lets you tap into the value you’ve built in your home, but calculating your actual borrowing power involves more than simple math. You need to factor in your lender’s loan-to-value limits, your existing mortgage balance, and how payments change between the draw and repayment periods.

Our HELOC calculator below helps you estimate three critical numbers: your maximum borrowing power based on your home’s value, your monthly payments during the interest-only draw period, and what you’ll pay once you enter full principal-and-interest repayment.

HELOC Calculator

Use this calculator to estimate how much you could borrow with a HELOC and what your monthly payments might look like during both the draw period and repayment period.

How Much Can You Borrow With a HELOC?

The amount you can borrow with a HELOC depends primarily on three factors: your home’s current market value, your existing mortgage balance, and your lender’s maximum loan-to-value (LTV) requirements. According to LendingTree, most lenders cap HELOC borrowing at 85% of your home’s value—though some go higher for well-qualified borrowers.

Here’s the basic formula lenders use:

(Home Value × Maximum LTV) – Current Mortgage Balance = Maximum HELOC Amount

For example, if your home is worth $450,000 and your lender allows 85% combined loan-to-value:

• $450,000 × 0.85 = $382,500 (maximum total debt allowed)
• $382,500 – $280,000 (mortgage balance) = $102,500 (maximum HELOC)

This doesn’t mean you need to borrow the full amount. A HELOC works like a credit card—you’re approved for a maximum credit line, but you only pay interest on what you actually withdraw.

Understanding Combined Loan-to-Value (CLTV)

When you apply for a HELOC, lenders look at your combined loan-to-value ratio (CLTV), not just your primary mortgage LTV. Bankrate reports that CLTV combines all loans secured by your home to assess total risk.

To calculate your CLTV:

(Mortgage Balance + HELOC Amount) ÷ Home Value = CLTV

Rocket Mortgage notes that CLTV requirements are tiered based on credit score. Their current requirements show how this works in practice:

• 680 credit score: Maximum 80% CLTV
• 700 credit score: Maximum 85% CLTV
• 740+ credit score: Maximum 90% CLTV

This tiered system means a borrower with excellent credit could potentially access 10% more of their home’s value compared to someone with good-but-not-great credit.

Draw Period vs. Repayment Period Payments

One of the most important things to understand about HELOCs is that your monthly payment changes dramatically between the draw period and repayment period. Citizens Bank explains that this two-phase structure catches many borrowers off guard.

Draw Period (Typically 10 Years)

During the draw period, most HELOCs require interest-only payments. According to industry data, here’s what that looks like in practice:

• You can borrow and repay funds as needed, up to your credit limit
• Minimum payments cover only interest—no principal reduction required
• As you repay principal, those funds become available to borrow again
• Your payment fluctuates based on your balance and current interest rate

For example, if you borrow $50,000 at 7.25% APR, your monthly interest-only payment would be approximately $302.

Repayment Period (Typically 20 Years)

When the draw period ends, your HELOC converts to an amortizing loan. PNC Bank notes that payments during this phase include both principal and interest, which significantly increases your monthly obligation.

Using the same $50,000 balance at 7.25% over a 20-year repayment period, your payment would jump to approximately $396—a 31% increase. Bankrate reports that many borrowers see their payments more than double when entering repayment, especially if they only made minimum payments during the draw period.

Sample Payment Comparison Table

Balance	Draw Period Payment (Interest Only @ 7.25%)	Repayment Period Payment (20-Year Amortization)	Payment Increase
$25,000	$151	$198	+31%
$50,000	$302	$396	+31%
$75,000	$453	$594	+31%
$100,000	$604	$792	+31%

Factors That Affect Your HELOC Limit

While home equity is the primary factor, lenders consider several additional elements when determining your maximum HELOC amount and interest rate.

Credit Score

Rate.com reports that most lenders require a minimum credit score of 620 for HELOC approval, though 680 or higher typically gets you better rates and higher borrowing limits. Scores of 740 and above often qualify for the lowest rates and highest CLTV ratios.

Debt-to-Income Ratio (DTI)

Your DTI compares your monthly debt payments to your gross monthly income. Freedom Mortgage notes that lenders typically want to see a DTI under 43%, though some are more flexible. Lower DTI ratios generally mean higher borrowing limits.

Home Appraisal

Lenders will order an appraisal (or use an automated valuation model) to verify your home’s current market value. RefiGuide explains that in declining markets, lenders may be more conservative with their LTV limits, while appreciating markets might give you more borrowing power than you expected.

Income Stability

Lenders typically want to see a stable two-year employment history. Self-employed borrowers may need to provide additional documentation like tax returns and profit-and-loss statements.

Current HELOC Rates

HELOC rates are variable, meaning they change with market conditions. According to Curinos data from January 2026, the average HELOC rate is currently 7.25%, down 19 basis points from the previous month.

HELOC rates are typically calculated as the prime rate (currently 6.75%) plus a margin that varies by lender and your creditworthiness. Following three Federal Reserve rate cuts in 2025, HELOC rates are at their lowest level in over three years.

Here’s how current HELOC rates compare to other borrowing options:

Loan Type	Average Rate (Jan 2026)	Rate Type
HELOC	7.25%	Variable
Home Equity Loan	7.56%	Fixed
Personal Loan	10-15%	Fixed
Credit Cards	20-24%	Variable

CBS News reports that a “good” HELOC rate in early 2026 is approximately 7.63% or lower, with the best rates going to borrowers with excellent credit, significant equity, and shorter repayment terms.

How to Maximize Your HELOC Borrowing Power

If you want to qualify for the highest HELOC amount at the best rate, consider these strategies:

Improve Your Credit Score

Even a modest improvement from 680 to 740 could shift you from an 80% CLTV limit to 90%—potentially adding tens of thousands to your borrowing power. Pay down credit card balances, dispute any errors on your credit report, and avoid opening new accounts before applying.

Pay Down Your Mortgage

Every dollar you pay toward your mortgage principal increases your available equity. Making extra principal payments for a few months before applying could meaningfully increase your HELOC limit.

Shop Multiple Lenders

LendingTree notes that HELOC rates can range from nearly 6% to 18% depending on the lender. Shopping at least three lenders—including your current mortgage servicer, a local credit union, and an online lender—can help you find the best combination of rate and borrowing limit.

Consider Your Timing

HELOC rates are tied to the Federal Reserve’s benchmark rate. CBS News suggests watching the Fed meeting calendar—rates often drop in anticipation of cuts, which could save you money if you time your application strategically.

Look for Introductory Rates

Some lenders offer promotional rates that can significantly reduce your initial costs. For example, FourLeaf Credit Union is currently offering 5.99% APR for the first 12 months on HELOCs up to $500,000, before converting to a variable rate.

Frequently Asked Questions

How do I calculate how much I can borrow with a HELOC?

Multiply your home’s value by your lender’s maximum CLTV (typically 80-85%), then subtract your current mortgage balance. For example: $400,000 home × 85% = $340,000, minus $250,000 mortgage = $90,000 maximum HELOC. Use our calculator above for a personalized estimate.

What’s the minimum credit score needed for a HELOC?

Most lenders require at least 620, though 680 or higher gets you better rates and higher borrowing limits. For the best rates and 90% CLTV limits, you typically need a 740+ credit score.

Why do HELOC payments increase after the draw period?

During the draw period (typically 10 years), most HELOCs require interest-only payments. When you enter the repayment period, payments include both principal and interest, which can increase your monthly payment by 30% or more.

Can I pay down my HELOC principal during the draw period?

Yes, most lenders allow you to make principal payments at any time during the draw period. This reduces your balance, lowers interest costs, and makes funds available to borrow again.

How does a HELOC interest rate compare to a home equity loan?

HELOCs typically have variable rates (currently averaging 7.25%) while home equity loans have fixed rates (averaging 7.56%). HELOC rates may be lower initially but can change over time with market conditions.

What happens if my home value drops after getting a HELOC?

If your home’s value decreases significantly, your lender may reduce your credit limit or freeze your ability to draw additional funds. You’ll still be responsible for repaying any amounts already borrowed.

Are HELOC closing costs tax deductible?

HELOC interest may be tax deductible if you use the funds to “buy, build, or substantially improve” the home that secures the loan. Interest used for other purposes (like debt consolidation) generally isn’t deductible. Consult a tax professional for guidance on your specific situation.

How long does it take to get approved for a HELOC?

Traditional lenders typically take 2-6 weeks to process a HELOC application, including the appraisal. Some online lenders like Figure offer approval in as little as 5 minutes with funding within 5 days.

Can I get a HELOC if I have no mortgage?

Yes, homeowners who own their home outright can get a HELOC. With no existing mortgage, your entire equity position (up to the lender’s LTV limit) is available for borrowing.

What’s the difference between CLTV and LTV?

LTV (loan-to-value) compares a single loan to your home’s value. CLTV (combined loan-to-value) includes all loans secured by your home—your primary mortgage plus any HELOCs or home equity loans. Lenders use CLTV when evaluating HELOC applications.

For a comprehensive overview of home equity lines of credit, see our complete guide to HELOCs. If you’re comparing options, our HELOC vs. Home Equity Loan vs. Cash-Out Refinance comparison can help you choose the right product for your needs. Ready to shop? Check out our picks for the best HELOC lenders in 2026.