How Much Can You Borrow With a HELOC?
Most lenders let you borrow up to 80–90% of your home's value minus your existing mortgage balance. This is the combined loan-to-value (CLTV) limit. If your home is worth $500,000, your mortgage balance is $280,000, and the lender allows 85% CLTV, your HELOC limit is (0.85 × $500,000) − $280,000 = $145,000. A HELOC is a revolving credit line — you draw what you need, when you need it, and only pay interest on the balance you use.
How to Use This HELOC Calculator
Enter your home value, mortgage balance, and the lender's max CLTV. Add the amount you want to draw and the rate. The calculator shows your available credit line, your interest-only payment during the draw period, and your fully-amortizing payment once repayment begins.
Draw Period vs Repayment Period
A HELOC has two phases. During the draw period (typically 10 years) you can borrow and repay freely, often paying interest only — which keeps payments low but builds no equity. When the repayment period begins (often 20 years), you can no longer draw and must pay principal plus interest, so the monthly payment can jump sharply. Plan for that step-up before it hits.
HELOC vs Home Equity Loan vs Cash-Out Refinance
A HELOC is flexible and variable-rate — best for ongoing or uncertain costs like a phased renovation. A home equity loan gives a fixed lump sum at a fixed rate — better for a known one-time expense. A cash-out refinance replaces your whole mortgage — worth considering only if today's rates beat your current one. Compare the trade-offs with our Mortgage Refinance Calculator and Mortgage Calculator.