Home & mortgage
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.
Line you could open
$140,000
$250.00 a month on $40,000 drawn, then $370.80 once repayment starts
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
- Interest
Repayment by year
| Year | Principal | Interest | Owed |
|---|
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
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 this calculator works
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
| Dataset | Authority | Effective | Status |
|---|---|---|---|
| United States mortgage qualifying ratios | Consumer Financial Protection Bureau | Within its effective period | |
| Canadian debt service ratios | CMHC | Within 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.
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.