Example result based on the prefilled values.
Current Home Equity
$150,000.00
Equity %
37.50%
Current LTV
62.50%
Max HELOC Available
$90,000.00
Monthly Payment
$0.00
Total Interest
$0.00
Continue your plan
Useful next calculations
When to use this calculator
- Before comparing lenders, brokers, or repayment options.
- When you want to test how a different deposit, rate, or term changes affordability.
- When you need a quick estimate before using a formal quote or agreement in principle.
- When you are stress-testing your budget against a potential rate rise to see the impact on monthly payments.
- When you want to understand the full cost of borrowing — not just the monthly figure — before you commit.
A realistic US planning example
Use these sample inputs as a quick scenario test, then change one variable at a time to compare outcomes.
Current Home Value ($)
$350,000
Outstanding Mortgage Balance ($)
$280,000
HELOC Interest Rate (%)
5%
Amount to Draw from HELOC ($)
50000
After entering these figures, review current home equity, equity % and current ltv together rather than in isolation — each metric tells a different part of the story. Then rerun the tool with one input adjusted to see which variable has the biggest effect on all three outputs before you settle on a plan.
How to read your results
Current Home Equity
Use this metric to compare scenarios side by side and understand how changes in the key inputs drive the final outcome. If the figure surprises you, isolate one variable at a time and rerun the calculation to identify which assumption is responsible.
Equity %
Use this metric to compare scenarios side by side and understand how changes in the key inputs drive the final outcome. If the figure surprises you, isolate one variable at a time and rerun the calculation to identify which assumption is responsible.
Current LTV
Loan-to-value helps you compare product eligibility and understand how much lender risk you are carrying at this deposit level. Crossing key LTV thresholds — typically 90%, 85%, or 75% — can unlock materially better interest rates.
Max HELOC Available
Use this metric to compare scenarios side by side and understand how changes in the key inputs drive the final outcome. If the figure surprises you, isolate one variable at a time and rerun the calculation to identify which assumption is responsible.
Monthly Payment
Use this to check whether the scenario fits comfortably within your regular budget. If it looks tight, rerun the tool with a longer term or larger deposit to find the boundary of affordability.
Total Interest
This shows the long-run cost of borrowing beyond the original principal, which is especially useful when comparing terms or weighing up overpayment options. A shorter term usually cuts this figure significantly even if the monthly payment rises.
Method & assumptionsAuthoritative sources
This calculator determines your current home equity and loan-to-value ratio, then estimates the maximum HELOC credit line your lender may offer based on the combined loan-to-value (CLTV) percentage you enter. The default 85% CLTV reflects the most common threshold used by major US lenders as of 2024, though some lenders allow up to 90% and others cap at 80%. Maximum HELOC availability equals (home value × max CLTV) minus your current mortgage balance. The monthly payment figure assumes the drawn amount is repaid in fully amortizing equal installments over the repayment period at the stated fixed rate; actual HELOCs typically carry variable rates tied to the Wall Street Journal prime rate, so real payments will fluctuate with rate changes.
The total interest calculation reflects the full repayment period and does not model the interest-only draw period that most HELOCs include before repayment begins, nor does it account for annual fees, closing costs, or inactivity fees that some lenders charge. Home value should reflect a realistic current market estimate, not the original purchase price or tax-assessed value. An independent appraisal or broker price opinion will be required by the lender and may differ from estimates produced by automated valuation models. Always obtain a formal Loan Estimate from your lender before making borrowing decisions.
Common mistakes
- !Using an assumption that is not supported by a current local quote, bill, statement or official source.
- !Treating a generic estimate as a lender, provider, payroll or tax authority decision.
- !Mixing monthly and annual inputs without converting them consistently.
- !Forgetting location-specific taxes, fees, eligibility rules or payroll deductions where they apply.
- !Testing only one scenario instead of checking how a cautious assumption changes the result.
What to do next
- Run a second scenario with a cautious assumption so you can see the downside clearly.
- Compare the result with the related calculators below before making a decision.
- Check current local rules, eligibility and provider terms before applying or committing money.
- Keep a record of the assumptions so you can update the estimate when a quote, bill or pay figure changes.
- Use the result to prepare better questions for a lender, provider, adviser or employer rather than treating it as a final answer.
Frequently asked
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