Use this calculator to estimate how much you might be able to borrow with a Home Equity Line of Credit (HELOC). A HELOC allows you to borrow against the equity in your home, typically up to a certain percentage of your home's value, minus your outstanding mortgage balance.
Your Estimated HELOC Details:
Enter your details and click "Calculate HELOC" to see your results.
Understanding Your Home Equity Line of Credit (HELOC) Potential
A Home Equity Line of Credit (HELOC) is a revolving line of credit, much like a credit card, but it's secured by the equity in your home. This means your home serves as collateral, often resulting in lower interest rates compared to unsecured loans.
How HELOCs Work
Lenders determine your eligibility and the maximum amount you can borrow based primarily on your home's current market value, your outstanding mortgage balance, and their specific Combined Loan-to-Value (CLTV) limits. The CLTV limit is the maximum percentage of your home's value that the lender will allow to be encumbered by all loans, including your first mortgage and the new HELOC.
Key Factors in HELOC Calculation
Current Market Value of Your Home: This is the estimated worth of your property in today's market. The higher your home's value, the more equity you potentially have.
Outstanding Balance on Your First Mortgage: This is the remaining amount you owe on your primary home loan.
Lender's Maximum Combined Loan-to-Value (CLTV) Limit: Lenders typically have a cap on the total amount of debt (first mortgage + HELOC) they will allow relative to your home's value. Common CLTV limits range from 80% to 90%. For example, an 85% CLTV limit on a $400,000 home means the total debt secured by the home cannot exceed $340,000.
Calculating Your Available HELOC
The calculation generally follows these steps:
Determine Your Home Equity: Subtract your outstanding first mortgage balance from your home's current market value. This is the total equity you have built up.
Calculate Maximum Allowed Borrowing: Multiply your home's current market value by the lender's CLTV limit (as a decimal). This gives you the absolute maximum total debt allowed against your home.
Estimate Your Available HELOC: Subtract your outstanding first mortgage balance from the maximum allowed borrowing. The result is your estimated available HELOC amount.
Example Scenario:
Let's say your home is valued at $400,000, and you owe $200,000 on your first mortgage. Your lender has an 85% CLTV limit.
Your Current Home Equity: $400,000 (Home Value) – $200,000 (Mortgage Balance) = $200,000
In this example, you could potentially qualify for a HELOC of up to $140,000.
Keep in mind that this calculator provides an estimate. Actual HELOC amounts and terms will depend on your credit score, income, debt-to-income ratio, and the specific policies of the lender.
.calculator-container {
font-family: 'Segoe UI', Tahoma, Geneva, Verdana, sans-serif;
background-color: #f9f9f9;
padding: 25px;
border-radius: 10px;
box-shadow: 0 4px 12px rgba(0, 0, 0, 0.08);
max-width: 700px;
margin: 30px auto;
border: 1px solid #e0e0e0;
}
.calculator-container h2 {
color: #0056b3;
text-align: center;
margin-bottom: 20px;
font-size: 1.8em;
}
.calculator-container h3 {
color: #333;
margin-top: 25px;
margin-bottom: 15px;
font-size: 1.4em;
border-bottom: 2px solid #eee;
padding-bottom: 5px;
}
.calculator-container p {
color: #555;
line-height: 1.6;
margin-bottom: 10px;
}
.calc-input-group {
margin-bottom: 18px;
display: flex;
flex-direction: column;
}
.calc-input-group label {
margin-bottom: 8px;
color: #333;
font-weight: bold;
font-size: 1em;
}
.calc-input-group input[type="number"] {
padding: 12px;
border: 1px solid #ccc;
border-radius: 6px;
font-size: 1.1em;
width: 100%;
box-sizing: border-box;
transition: border-color 0.3s ease;
}
.calc-input-group input[type="number"]:focus {
border-color: #007bff;
outline: none;
box-shadow: 0 0 5px rgba(0, 123, 255, 0.3);
}
.calc-button {
background-color: #007bff;
color: white;
padding: 14px 25px;
border: none;
border-radius: 6px;
font-size: 1.15em;
cursor: pointer;
display: block;
width: 100%;
margin-top: 25px;
transition: background-color 0.3s ease, transform 0.2s ease;
}
.calc-button:hover {
background-color: #0056b3;
transform: translateY(-2px);
}
.calc-button:active {
transform: translateY(0);
}
.calc-result-area {
background-color: #eaf6ff;
border: 1px solid #b3d9ff;
border-radius: 8px;
padding: 20px;
margin-top: 30px;
}
.calc-result-area h3 {
color: #0056b3;
margin-top: 0;
border-bottom: none;
padding-bottom: 0;
text-align: center;
font-size: 1.5em;
}
.calc-result-area p {
font-size: 1.1em;
color: #333;
margin-bottom: 8px;
}
.calc-result-area p strong {
color: #0056b3;
}
.calc-article {
margin-top: 30px;
padding-top: 20px;
border-top: 1px dashed #ccc;
}
.calc-article ul {
list-style-type: disc;
margin-left: 20px;
color: #555;
}
.calc-article ol {
list-style-type: decimal;
margin-left: 20px;
color: #555;
}
.calc-article li {
margin-bottom: 8px;
line-height: 1.5;
}
function calculateHELOC() {
var currentHomeValue = parseFloat(document.getElementById("currentHomeValue").value);
var firstMortgageBalance = parseFloat(document.getElementById("firstMortgageBalance").value);
var lenderLTVLimit = parseFloat(document.getElementById("lenderLTVLimit").value);
var resultDiv = document.getElementById("result");
// Input validation
if (isNaN(currentHomeValue) || currentHomeValue < 0) {
resultDiv.innerHTML = "Please enter a valid current home value.";
return;
}
if (isNaN(firstMortgageBalance) || firstMortgageBalance < 0) {
resultDiv.innerHTML = "Please enter a valid outstanding mortgage balance.";
return;
}
if (isNaN(lenderLTVLimit) || lenderLTVLimit 100) {
resultDiv.innerHTML = "Please enter a valid CLTV limit (1-100%).";
return;
}
// Calculations
var totalHomeEquity = currentHomeValue – firstMortgageBalance;
var maxBorrowingLimit = currentHomeValue * (lenderLTVLimit / 100);
var availableHELOC = maxBorrowingLimit – firstMortgageBalance;
var formattedHomeValue = currentHomeValue.toLocaleString('en-US', { style: 'currency', currency: 'USD', minimumFractionDigits: 0, maximumFractionDigits: 0 });
var formattedMortgageBalance = firstMortgageBalance.toLocaleString('en-US', { style: 'currency', currency: 'USD', minimumFractionDigits: 0, maximumFractionDigits: 0 });
var formattedTotalHomeEquity = totalHomeEquity.toLocaleString('en-US', { style: 'currency', currency: 'USD', minimumFractionDigits: 0, maximumFractionDigits: 0 });
var formattedMaxBorrowingLimit = maxBorrowingLimit.toLocaleString('en-US', { style: 'currency', currency: 'USD', minimumFractionDigits: 0, maximumFractionDigits: 0 });
var formattedAvailableHELOC = availableHELOC.toLocaleString('en-US', { style: 'currency', currency: 'USD', minimumFractionDigits: 0, maximumFractionDigits: 0 });
var outputHTML = "";
outputHTML += "Your Current Home Equity: " + formattedTotalHomeEquity + "";
outputHTML += "Maximum Allowed Borrowing (based on " + lenderLTVLimit + "% CLTV): " + formattedMaxBorrowingLimit + "";
if (availableHELOC > 0) {
outputHTML += "Estimated Available HELOC Amount: " + formattedAvailableHELOC + "";
} else {
outputHTML += "Based on your inputs, you currently have no available HELOC amount. This could be because your outstanding mortgage balance is too high relative to your home's value and the lender's CLTV limit.";
}
resultDiv.innerHTML = outputHTML;
}