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HELOC Calculator

Work out the home-equity line you could open from your home's value and mortgage, and the payment while drawing and once repayment starts. US and Canada.

Reviewed by CentExactRates effective 2 sourcesCalculated in your browser. Shared links include inputs.

Line you could open

$140,000

$250.00 a month on $40,000 drawn, then $370.80 once repayment starts

Combined LTV 60%
Where the home is

Only the United States and Canada sell home-equity lines as a mainstream product.

Your home
$
$
%

No federal law caps how much of the home a HELOC and the mortgage may take together; lenders commonly stop at 80% to 85% combined. Texas caps a home-equity line at 80% in its constitution.

The line
$

Up to $140,000 here.

%

HELOC rates are variable, usually the prime rate plus a margin set by your credit and combined loan-to-value.

0%15%
yrs

A draw period of about ten years is usual, often with interest-only minimum payments.

yrs

The CFPB describes repayment after the draw period as often over ten or 15 years, or a balloon payment.

Off spreads the repayment over both periods.
How the limit was worked out

85% of $400,000 is $340,000; less the $200,000 mortgage leaves $140,000.

No federal law caps how much of the home a HELOC and the mortgage may take together; lenders commonly stop at 80% to 85% combined. Texas caps a home-equity line at 80% in its constitution.

  • Payment while drawing

    $250.00

    interest only

  • Payment after

    $370.80

    over 15 years

  • Total interest

    $56,746

    on $40,000 drawn

  • Equity now

    $200,000

    value less the mortgage

Variable rate held where you set it. An estimate, not financial advice, providers may calculate differently.

Principal and interest by year
  • Principal
  • Interest

Repayment by year

Schedule view
HELOC payments by year
YearPrincipalInterestOwed

An American HELOC is a variable-rate line secured on the home: you draw during the draw period, usually paying only the interest, then repay what you owe over the repayment period. Regulation Z sets the disclosures, not the limits.

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How this is calculated

The limit is the share of your home's value a lender will lend against in all, less what you still owe on the mortgage, and in Canada never more than the 65% of the value OSFI allows the revolving line on its own. The cost is worked out as if you draw the amount at the start: during the draw period you pay the interest, and when it ends the balance is repaid in level monthly payments over the repayment period. The result shows both payments, because the jump between them is the thing most borrowers do not plan for.

Limitc × V − M

While drawingD × r

AfterD × r ÷ (1 − (1 + r)−n)

V
the Home value
M
the Mortgage still owed
c
the lender's combined limit, as a fraction
D
the amount drawn; r the monthly rate; n the repayment months
In Canada the limit is also capped at 0.65 × V. The derivation under the result shows the limit with your figures.

What this does not include

  • Rate changes: a HELOC rate is variable, and the one you enter is held for the whole term.
  • Drawing in stages: the line is taken as fully drawn on day one.
  • Annual, closing or early-closure fees some lenders charge on a line.
  • Whether the interest is tax-deductible, which depends on what the money is spent on.

How a HELOC works: the limit, the draw period and the payment jump. How lenders set a home-equity line's limit, why Canada caps the revolving part at 65% of the home, and what happens to the payment when drawing ends.

Data sources

United States mortgage qualifying ratiosConsumer Financial Protection BureauWithin its effective period
Canadian debt service ratiosCMHCWithin its effective period

Every document each dataset was read from, its notes and how the figures were checked are listed in the guide's data sources.

CentExactCalculator publisher

CentExact publishes the calculation method, worked examples and available data sources. Automated checks cover reference calculations; they do not certify a result for your circumstances or imply approval by a lender or tax authority.

How we build and test our calculators

This calculator is for general information only and is not financial advice. Results are estimates based on the figures you enter and the stated formula; lenders and providers may round or calculate differently. Check any decision with the institution involved or a qualified adviser.