Finance
Determine your available home equity line of credit and interest-only payment.
Available Credit
$90,000$
Total credit available on your HELOC based on home value and max CLTV
This calculator estimates your available home equity and interest-only payment. CLTV (combined loan-to-value) limits and rates vary by lender.
A HELOC calculator computes the maximum available credit on a home equity line of credit by taking your home value, applying your lender's maximum combined loan-to-value (CLTV) percentage, and subtracting your current mortgage balance. It also calculates the interest-only monthly payment on any draw amount and shows your projected CLTV ratio after drawing funds.
The calculator multiplies your home value by the maximum CLTV percentage (typically 80-90%) to find the total credit line available, then subtracts your current mortgage balance to show what you can draw. For any requested draw amount, it calculates the monthly interest-only payment by multiplying the draw by your annual interest rate divided by 1200 (monthly rate). The result includes your available credit, requested draw, interest-only payment, and projected CLTV ratio after the draw.
Available Credit = (Home Value × Max CLTV %) - Mortgage Balance; Interest-Only Payment = (Draw Amount × Annual Rate) / 1200Home value is multiplied by the lender's maximum CLTV percentage to determine total borrowing capacity. Your current mortgage balance is subtracted to show available equity. Interest-only payment is the draw amount times the monthly interest rate (annual rate divided by 1200).
| Input | Result | Notes |
|---|---|---|
| Home Value: $400,000 | Mortgage Balance: $250,000 | Max CLTV: 85% | Annual Rate: 8.5% | Draw: $50,000 | Available Credit: $90,000 | Interest-Only Payment: $358/month | Projected CLTV: 75% | Homeowner with significant equity can draw $50,000 with low interest-only payment and strong CLTV ratio |
| Home Value: $500,000 | Mortgage Balance: $350,000 | Max CLTV: 85% | Annual Rate: 7.5% | Draw: $75,000 | Available Credit: $75,000 | Interest-Only Payment: $469/month | Projected CLTV: 85% | Drawing full available credit brings CLTV to the lender's maximum threshold |
| Home Value: $300,000 | Mortgage Balance: $200,000 | Max CLTV: 80% | Annual Rate: 9% | Draw: $24,000 | Available Credit: $40,000 | Interest-Only Payment: $180/month | Projected CLTV: 75% | More conservative CLTV limit provides lower available credit but manageable payment on draw |
CLTV (combined loan-to-value) is the total of all liens on your property divided by its market value, expressed as a percentage. Lenders limit CLTV to manage risk; higher ratios mean you're borrowing more against your home and pose greater risk. Most HELOC lenders cap CLTV at 85-90%.
Home equity is your home value minus your mortgage balance. Available credit is determined by your lender's maximum CLTV percentage applied to your home value, then reduced by your mortgage. A lender may not let you borrow all your equity due to CLTV limits.
Interest-only payments cover only accrued interest during the draw period (typically 5-10 years). After the draw period ends, you enter the repayment period where you pay both principal and interest, which is fully amortizing. This calculator shows interest-only monthly payments.
Yes—most HELOCs have variable rates that adjust based on an index (usually prime rate). Fixed-rate HELOCs exist but are less common and may carry higher rates. Confirm with your lender whether the rate is fixed or variable.
If your home value decreases, your available HELOC credit shrinks because it's calculated as a percentage of current home value. Some lenders may freeze or reduce your HELOC if home values decline significantly in your area.
No. Available credit shows the maximum you can access. You can draw any amount up to that limit and pay interest only on what you actually borrow, not on the full credit line.