HELOC Calculator

A home equity line of credit lets you tap equity without touching a first mortgage you may not want to give up — which matters enormously if your current rate is low.

The catch is structure: HELOCs typically start with an interest-only draw period, then convert to full repayment. The payment can jump significantly at that point.

Your numbers

$425,000
$245,000
$60,000

Your results

Available credit line

$116,250

At 85% combined loan-to-value

Interest-only payment
$425

During the 10-year draw period

Repayment payment
$521

Once repayment begins over 20 years

Payment increase at conversion
$96
Interest paid during draw
$51,000

No principal reduction

Current equity
$180,000
Combined LTV after draw
71.8%

What happens if you change this

You have $116,250 available at 85% combined loan-to-value. Drawing $60,000 costs $425 a month during the interest-only period — but that pays down nothing, and $51,000 in interest goes out over 10 years. When repayment starts, the payment jumps to $521, an increase of $96. HELOC rates are typically variable, so budget for movement rather than assuming 8.5% holds.

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Estimates get you oriented. A pre-approval gets you an offer sellers take seriously.

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Questions people ask

HELOC or cash-out refinance?
If your first mortgage rate is well below current rates, a HELOC usually wins because it leaves that rate untouched. If you need a large sum and rates have fallen, cash-out may be cheaper.
Are HELOC rates fixed?
Usually variable and tied to an index, so the payment can move. Some lenders offer fixed-rate draw options on a portion of the line.

Estimates for education only — not a loan approval, rate quote, or commitment to lend. Actual figures depend on credit, property, program guidelines, and market conditions at the time of lock. Corie Adams · NMLS #1875205 · Network Funding, LP · NMLS ID #2279 · Equal Housing Opportunity.