HELOC Calculator — Estimate Your Monthly Interest and Payments
Calculate monthly payments on a Home Equity Line of Credit. Compare HELOC rates with home equity loans and understand draw period vs repayment period costs.
A HELOC lets homeowners borrow against their home equity at lower rates than credit cards or personal loans. HELOCs have two phases: a draw period (usually 10 years) where you pay interest only and a repayment period (usually 20 years) where you pay principal plus interest. Current HELOC rates of 7.5-9.5% are variable tied to Prime Rate making monthly costs fluctuate with rate changes.
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Key Information
| Parameter | Details |
|---|---|
| Average HELOC Rate | 8% - 9.5% (variable 2026) |
| Draw Period | 5-10 years (interest only) |
| Repayment Period | 10-20 years (principal + interest) |
| Maximum LTV | 80% - 85% of home value |
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Use Calculator NowFrequently Asked Questions
How much can I borrow with a HELOC?
HELOC amount = (Home Value x 80-85%) - Existing Mortgage Balance. For a $500000 home with $300000 mortgage: ($500000 x 85%) - $300000 = $125000 maximum HELOC. Some lenders allow up to 90% LTV for excellent credit borrowers. Your credit score income and debt-to-income ratio also affect the approved amount and interest rate.
HELOC vs home equity loan which is better?
HELOCs offer flexibility with variable rates and draw-as-needed access ideal for ongoing expenses like renovations. Home equity loans provide lump-sum fixed-rate predictability better for one-time large expenses. HELOC rates average 0.5-1% higher but you only pay interest on what you draw. If you know the exact amount needed a fixed-rate home equity loan provides payment certainty.
Is HELOC interest tax deductible?
HELOC interest is tax deductible only if the funds are used to buy build or substantially improve the home securing the loan. Using HELOC funds for debt consolidation vacations or other purposes makes the interest non-deductible. The combined limit for mortgage and HELOC interest deductions is $750000 in total acquisition debt. Keep records of how HELOC funds are used.
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Last updated: 24 March 2026