HELOC & Home Equity Loan Calculator
These are two different products, not two names for the same thing. Pick the mode that matches what you’re actually considering — a revolving line you draw from as needed, or a fixed lump-sum loan.
Comparing this to a cash-out refinance? Or see all our calculators.
Glossary
A HELOC is a revolving line of credit — you draw what you need, when you need it, similar to a credit card, usually at a variable rate. A Home Equity Loan gives you the full amount as a lump sum at closing, at a fixed rate, and starts amortizing immediately. If you have one big, known expense, a Home Equity Loan is usually simpler; if your need is ongoing or uncertain, a HELOC’s flexibility is the point.
During the draw period, most HELOCs only require interest payments — your balance doesn’t go down unless you choose to pay more. Once the repayment period begins, you’re paying principal and interest on whatever you still owe, over a shorter fixed period, which is a real and often underestimated jump. Plan for it, or pay down principal during the draw period to soften it.
CLTV is your total debt secured by the home (existing mortgage plus the new HELOC or loan) divided by your home’s value. Most traditional lenders cap this around 80-85%, though it varies — confirm your specific lender’s limit rather than assuming a number.
Most HELOCs are variable, tied to the Prime Rate plus a fixed margin your lender sets based on your credit and CLTV. Breaking it out this way makes clear that your rate moves when Prime does — this calculator doesn’t predict future Prime Rate changes, only estimates your payment at today’s rate.