Home Equity & HELOC Calculator
Calculate your available home equity, maximum borrowing power, and compare HELOC vs. home equity loan payments with full amortization.
Property Details
Most lenders allow 80–85%. Enter your lender's limit.
HELOC Details
Variable rate. Typical range: 8–12% in 2026.
Max available: $132,500
Your Equity Breakdown
Draw Period Payment
$600
Interest only / mo
Repayment Payment
$720
Principal + interest / mo
Total Interest Cost
$164,747
Over full term
HELOC Balance Over Time
Draw period: 10 years (interest-only). Repayment period: 20 years (P+I).
HELOC vs. Home Equity Loan — Quick Compare
HELOC
- Variable rate (currently 9%)
- Interest-only during draw period
- Draw period: 10 yrs
- Total interest: $164,747
- Flexible — borrow as needed
Home Equity Loan
- Fixed rate (currently 9.5%)
- Fixed P+I from day one
- Term: 15 yrs
- Total interest: $70,368
- Lump-sum, predictable payments
A home equity calculator shows you how much of your home you actually own — the difference between its current market value and your outstanding mortgage balance. From there, it calculates how much you can borrow via a HELOC (Home Equity Line of Credit) or home equity loan based on your lender's Combined Loan-to-Value (CLTV) limit, then projects your monthly payments and total interest cost for either product.
Formula:
Home Equity = Current Home Value − Remaining Mortgage BalanceMax Borrowable = (Home Value × Max CLTV%) − Mortgage Balance. For a HELOC, interest-only payments apply during the draw period: Monthly Interest = Balance × (Rate / 12). During repayment, standard amortization applies. For a home equity loan, standard fixed amortization applies from day one.
- 1
Enter your home's current market value (use a recent appraisal or Zillow estimate)
- 2
Enter your remaining mortgage balance from your latest statement
- 3
Set your lender's maximum CLTV — most allow 80–85%, some up to 90%
- 4
Switch between HELOC and Home Equity Loan tabs to compare both products
- 5
For a HELOC, set the interest rate, draw amount, draw period, and repayment period
- 6
For a home equity loan, set the rate, loan amount, and term to see fixed monthly payments
- Home equity is often the largest untapped asset on a household's balance sheet — knowing your number opens financial options
- In 2026's high-rate environment, a HELOC at 9% is still far cheaper than credit card debt at 20–24%
- Understanding CLTV limits prevents over-borrowing that puts your home at risk
- Comparing HELOC vs. home equity loan total cost can save thousands in interest over the life of the loan
- Tax deductibility of interest (when used for home improvement) makes these products more attractive than personal loans
- Evaluating a home renovation and whether to use a HELOC or home equity loan
- Consolidating high-interest credit card debt at a lower secured rate
- Funding a child's college tuition with home equity instead of Parent PLUS loans
- Determining whether you have enough equity to avoid PMI on a refinance
- Planning a cash-out refinance vs. HELOC to access equity without resetting your mortgage rate
- Understanding your total borrowing capacity before approaching a lender
- •A HELOC is best for ongoing or phased expenses (renovations, tuition) — you only pay interest on what you draw
- •A home equity loan is better for a single known expense — you get payment certainty and protection from rate increases
- •If your existing mortgage rate is below 6%, a HELOC keeps that rate intact, whereas a cash-out refinance would reset your entire mortgage to current rates
- •Some lenders offer no-closing-cost HELOCs — these make sense for smaller amounts where closing costs would otherwise eat into savings
Mortgage Payment Calculator
Calculate your monthly mortgage payment with full amortization schedule
Try Calculator →Mortgage Refinance Calculator
Compare your current loan to a cash-out refinance to access equity
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Try Calculator →Have questions about using this calculator? Check out our financial guides or contact us for help.
Frequently Asked Questions
What is home equity and how is it calculated?
Home equity is the portion of your home you actually own — the difference between your home's current market value and the remaining balance on your mortgage. For example, if your home is worth $400,000 and you owe $250,000, you have $150,000 in equity. Equity grows as your home appreciates in value and as you pay down your mortgage principal.
What is the difference between a HELOC and a home equity loan?
A HELOC (Home Equity Line of Credit) is a revolving line of credit — similar to a credit card — with a variable interest rate. You draw funds as needed during a draw period (typically 10 years) and repay over a repayment period. A home equity loan is a lump-sum, fixed-rate loan repaid in equal monthly installments. HELOCs offer flexibility; home equity loans offer payment predictability.
How much home equity can I borrow against?
Most lenders allow you to borrow up to 80–85% of your home's appraised value, minus your outstanding mortgage balance. This is called the Combined Loan-to-Value (CLTV) ratio. For example, on a $400,000 home with an 85% CLTV limit and a $200,000 mortgage, your maximum line would be $140,000 ($340,000 limit minus $200,000 owed).
What are HELOC interest rates currently?
HELOC rates are variable and typically tied to the Prime Rate. As of 2026, HELOC rates generally range from 8% to 12% depending on your credit score, loan-to-value ratio, and lender. Home equity loan rates (fixed) tend to run slightly higher than HELOCs. Always compare the APR, not just the initial rate, since HELOCs can adjust significantly over time.
Is HELOC interest tax deductible?
HELOC interest is tax deductible only if you use the funds to buy, build, or substantially improve the home securing the loan. Interest used for debt consolidation, vacations, or other purposes is not deductible under current IRS rules (post-2017 Tax Cuts and Jobs Act). Consult a tax professional for your specific situation.
What is a cash-out refinance and how does it differ from a HELOC?
A cash-out refinance replaces your existing mortgage with a new, larger mortgage and pays you the difference in cash. You get a single loan at (typically) a fixed rate. A HELOC keeps your existing mortgage intact and adds a second lien. Cash-out refis make sense when you can lower your mortgage rate; HELOCs are better when your existing mortgage rate is already favorable.
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