Real Estate Tax Proration Calculator

HELOC Calculator

Estimate your available Home Equity Line of Credit limit

Your Results

Total Max Loan Amount: $0

Estimated HELOC Amount: $0

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How a HELOC Calculator Works

A Home Equity Line of Credit (HELOC) is a flexible financing tool that allows you to borrow against the equity in your home. Unlike a traditional loan, it works like a credit card: you have a limit, you borrow what you need, and you pay back interest only on what you use during the draw period.

The HELOC Formula

Lenders use a metric called Combined Loan-to-Value (CLTV) ratio to determine how much you can borrow. The standard formula is:

(Home Value × Max CLTV %) – Existing Mortgage Balance = Your HELOC Limit

Real-World Example

Imagine your home is worth $500,000 and you still owe $300,000 on your primary mortgage. If a lender allows an 80% CLTV:

1. Multiply the home value by the CLTV limit: $500,000 × 0.80 = $400,000.
2. Subtract your current mortgage: $400,000 – $300,000 = $100,000.
3. Your estimated HELOC limit is $100,000.

Factors That Affect Your HELOC

• Credit Score: Higher scores often unlock higher CLTV limits (up to 90%) and lower interest rates.
• Debt-to-Income (DTI) Ratio: Lenders typically want your total monthly debt payments to be under 43% of your gross income.
• Home Appraisal: While this calculator uses your estimate, a lender will require a professional appraisal to confirm the value.

HELOC vs. Home Equity Loan

While both use your home as collateral, a Home Equity Loan provides a lump sum with a fixed interest rate. A HELOC provides a variable rate and a revolving line of credit, making it ideal for ongoing projects like home renovations or emergency funds.

function calculateHeloc() { var homeValue = parseFloat(document.getElementById('homeValue').value); var mortgageBalance = parseFloat(document.getElementById('mortgageBalance').value); var cltvLimit = parseFloat(document.getElementById('cltvLimit').value) / 100; var resultDiv = document.getElementById('helocResult'); var maxLoanDisplay = document.getElementById('maxLoanDisplay'); var finalHelocDisplay = document.getElementById('finalHelocDisplay'); var helocNote = document.getElementById('helocNote'); if (isNaN(homeValue) || isNaN(mortgageBalance)) { alert("Please enter valid numbers for home value and mortgage balance."); return; } var totalMaxLoan = homeValue * cltvLimit; var availableEquity = totalMaxLoan – mortgageBalance; if (availableEquity 0) { helocNote.innerText = "Based on a " + (cltvLimit * 100) + "% CLTV limit, you may be eligible to access up to " + formatter.format(availableEquity) + " in credit."; } else { helocNote.innerText = "Currently, your mortgage balance exceeds the lender's CLTV limit. You may need more equity to qualify for a HELOC."; } resultDiv.style.display = 'block'; resultDiv.scrollIntoView({ behavior: 'smooth', block: 'nearest' }); }