HELOC Calculator - Payments, Equity and Combined LTV

A home equity line of credit (HELOC) is revolving credit secured by a home. The lender approves a maximum line, and interest is generally charged only on the amount drawn. During a draw period, borrowers may be allowed to make interest-only payments. During repayment, the balance may convert to principal-and-interest installments. Product terms vary, and most HELOC rates are variable rather than fixed. The interest-only estimate is the drawn balance multiplied by the annual rate divided by 12. A $50,000 draw at 7.5% produces a $312.50 first-month interest payment. That amount does not reduce principal. The amortized estimate applies the standard monthly payment formula across the entered term; the same balance and rate over ten years requires about $593.51 per month and gradually pays the balance to zero if the rate remains constant. Available credit is the line limit minus the planned draw. Home equity is current home value minus the first-mortgage balance, while combined loan-to-value (CLTV) is first mortgage plus HELOC draw divided by home value. On a $500,000 home with a $300,000 mortgage and $50,000 draw, CLTV is 70%. Lenders may calculate eligibility using the full line limit rather than only the draw and often impose a maximum CLTV. The estimate does not include minimum-payment floors, annual fees, closing costs, appraisal charges, early-closure fees, rate caps, promotional rates, or future draws. If the index rate changes, payment and total interest change. A falling property value raises CLTV and can reduce refinancing options. Because the home secures the debt, missed payments can put the property at risk. Use the HELOC payment results to compare an interest-only draw-period payment with the later amortized burden. Stress-test a rate several percentage points higher, and budget for the payment reset before borrowing. Verify whether the quoted margin, index, and rate floor match the input. Compare a HELOC with a fixed home-equity loan or unsecured loan based on total cost, flexibility, fees, tax advice, and risk—not the initial monthly payment alone.