How much can I borrow with a HELOC?

Most lenders allow you to borrow up to 85% of your home's appraised value minus your outstanding mortgage balance. For example, if your home is worth $500,000 and you owe $280,000, your maximum HELOC would be (500,000 × 0.85) − 280,000 = $145,000.

What credit score do I need to qualify for a HELOC?

Most lenders require a minimum credit score of 620–640 to qualify for a HELOC. However, to get the best rates and terms, a score of 720 or higher is typically needed. A higher credit score can lower your lender margin by 0.5–1.5%, significantly reducing your interest costs.

Is HELOC interest tax deductible?

HELOC interest may be tax deductible if the funds are used to buy, build, or substantially improve the home that secures the loan. Under the Tax Cuts and Jobs Act of 2017, interest used for other purposes (debt consolidation, personal expenses) is generally not deductible. Always consult a tax professional for your specific situation.

What is a HELOC draw period?

The draw period is the initial phase of a HELOC — typically 5 to 10 years — during which you can borrow funds up to your credit limit, repay them, and borrow again. Payments during the draw period are usually interest-only, which keeps monthly costs lower than the repayment period.

What is the difference between a HELOC and a home equity loan?

A HELOC is a revolving line of credit with a variable interest rate — you draw funds as needed. A home equity loan provides a lump sum at a fixed interest rate with equal monthly payments from day one. HELOCs offer flexibility for ongoing expenses; home equity loans offer predictability for one-time large purchases.

How long does it take to get approved for a HELOC?

HELOC approval typically takes 2 to 6 weeks from application to funding. The process includes a home appraisal, credit check, income verification, and title search. Some online lenders offer expedited approvals in as little as 5 business days.

HELOC Calculator
Unlock your home
equity today

Find out exactly how much you can borrow against your home equity. Enter your home value and mortgage balance — get your results in seconds, completely free.

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Calculate my HELOC What is a HELOC?

4.9/5 from 2,400+ homeowners

Today's avg rate

8.25% APR

Example calculation

How much can you borrow?

Home value $500,000

× Lender LTV (85%) = $425,000

− Mortgage balance $280,000

Max HELOC available $145,000

You could access up to

at ~8.25% variable APR

$145,000

Est. monthly payment

$996 / mo

Free HELOC calculator

Calculate your home equity line of credit

Adjust the sliders or type your numbers — results update instantly as you go.

Your home details

Home value $500,000

$0$2M

Mortgage balance $280,000

$0$2M

Interest rate (APR) 8.25%

1%20%

Lender LTV limit

LTV limit 85% Standard

70%

Min

75%

Low

80%

Conservative

85%

Standard

90%

Flexible

95%

Max

Draw period

Repayment period

Your results

Maximum HELOC available

$145,000

Based on 85% LTV · your home equity: $220,000

Monthly payment

$996

Interest-only · draw period

Home equity (LTV)

44.0%

Current LTV ratio

Draw period ends

2036

10-year draw window

Repayment payment

$1,241

P+I · repayment period

Total interest

$119,520

Draw + repayment

Home equity breakdown $500,000 home

Likely eligible

LTV is within standard lender limits. Good equity position.

Full calculator

Results are estimates for informational purposes only and do not constitute financial advice. Actual HELOC amounts, rates, and terms vary by lender and individual qualification. Full disclaimer · Learn how HELOCs work

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By homeowners across the US

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Expert reviewed daily

What homeowners say

4.9 from 2,416 reviews

"Clear, no-nonsense results. The equity bar breakdown which was very visual and helpful."

— David P., New York

"Used it on my phone — works perfectly. Got my results in under 60 seconds."

— Maria T., Arizona

"Finally understood how much equity I actually had. Used this before meeting my lender."

— Sarah M., Texas

"Sliders make it so easy to compare different scenarios. Saved hours of spreadsheet work."

— James R., California

"Best free HELOC tool I found. Walked me through exactly what to expect before applying."

— Linda K., Florida

"Clear, no-nonsense results. Shows the equity bar breakdown which was very visual and intuitive."

— David P., New York

"Used it on my phone — works perfectly. Got my results in under 60 seconds."

— Maria T., Arizona

"Finally understood how much equity I actually had. Used this before meeting my lender."

— Sarah M., Texas

"Sliders make it so easy to compare different scenarios. Saved hours of spreadsheet work."

— James R., California

"Best free HELOC tool I found. Walked me through exactly what to expect before applying."

— Linda K., Florida

"Clear, no-nonsense results. Shows the equity bar breakdown which was very visual and intuitive."

— David P., New York

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How to calculate your HELOC

No spreadsheets. No lender calls. Just three simple steps to know exactly how much home equity you can access.

Step 1

Enter your home details

Type in your estimated home value and current mortgage balance — or use the sliders for a quick estimate. Then choose your lender's LTV limit (most are 80–90%).

Home value Mortgage balance LTV limit

Step 2

See your calculation

We apply the standard HELOC formula: (Home value × LTV) − Mortgage balance. You'll see your maximum borrowing amount, current equity, and how it breaks down as a visual bar.

HELOC formula Equity breakdown

Step 3

Get your full results

Your results panel shows max borrowing amount, estimated monthly payment, eligibility status, and total interest over the draw period — all in one place. Share or bookmark your results.

Eligibility check Share results Download PDF

Home value

$ 500,000

Mortgage balance

$ 280,000

Lender LTV limit

80%

85%

90%

95%

Home value $500,000

× Lender LTV (85%) = $425,000

− Mortgage balance $280,000

Max HELOC available

at 8.25% variable APR

$145,000

Equity breakdown

Mortgage ($280K)

HELOC ($145K)

Buffer ($75K)

Maximum HELOC available

Based on 85% LTV · 8.25% APR

$145,000

Monthly payment

$996/mo

Interest-only · draw period

Current LTV

56.0%

Well within limits

Eligibility

✓ Likely eligible

LTV within standard limits

Draw period ends

2036

10-year window

Pro tip: run multiple scenarios before talking to a lender

Try different home values, LTV limits, and interest rates to understand your best and worst case. Most lenders appreciate borrowers who come prepared. Learn how to qualify for a HELOC →

Live rate data · updated daily

Today's HELOC rates

Last updated: loading… · Source: Federal Reserve & lender data

Compare all rates

National avg rate

8.25%

Variable APR

+0.12% this week

Best available

7.49%

Top lender offer

−0.08% this week

Fed prime rate

7.50%

HELOC base index

Unchanged

Avg lender margin

+0.75%

Above prime rate

Stable this month

Lender rate comparison

Lender	Rate (APR)	Change	Min draw

12-month rate trend

National average HELOC rate vs Fed prime rate

National avg HELOC rate

Fed prime rate (7.50%)

What drives HELOC rates?

HELOC rates are variable and directly tied to the Federal Reserve's prime rate. When the Fed raises or cuts rates, your HELOC rate adjusts accordingly — usually within one billing cycle.

HELOC rate = Prime rate + lender margin (typically 0.5–2.0% above prime)

A higher credit score (720+) qualifies you for a lower margin and better rate

Lifetime rate caps (typically 18%) protect against extreme rate increases

Learn how HELOC rates work

Rate watch: The Fed meets next on June 18, 2026. Markets currently price in a 65% chance of a rate hold. Lock in your HELOC terms before any potential change.

Track rates →

Educational guide · E-E-A-T content

What is a HELOC?

A HELOC — Home Equity Line of Credit — lets you borrow against the equity built up in your home, giving you a flexible, revolving line of credit you can draw from as needed, similar to a credit card but secured by your property.

Official definition

A HELOC is a revolving credit line secured by your home. Lenders advance up to 85–95% of your home's value minus your outstanding mortgage balance, giving you access to that equity on a draw-as-needed basis during the draw period.

Unlike a home equity loan — which gives you a lump sum at a fixed rate — a HELOC works more like a credit card with your home as collateral. You only pay interest on what you actually borrow, making it ideal for ongoing expenses like renovations, tuition, or debt consolidation.

Draw period (typically 5–10 years)

During the draw period you can borrow up to your limit, repay, and borrow again. Payments are usually interest-only during this phase, keeping monthly costs low.

Variable interest rate

HELOC rates are variable and tied to the Federal Reserve prime rate plus a lender margin. As the Fed adjusts rates, your HELOC rate moves with it — up or down within billing cycles.

Repayment period (typically 10–20 years)

After the draw period closes, the line converts to a repayment loan. You can no longer draw funds and must repay both principal and interest — payments increase significantly during this phase.

Your home is the collateral

Because your home secures the HELOC, defaulting puts your property at risk of foreclosure. Only borrow what you can comfortably repay, and always account for potential rate increases.

Read the complete HELOC guide

The HELOC borrowing formula

Interactive

Home value

$500,000

× Lender LTV limit

85% = $425,000

− Mortgage balance

$280,000

Max HELOC available

at today's avg 8.25% APR

$145,000

Try with your numbers

HELOC lifecycle: draw period vs repayment period

Draw (10 yr)

Repayment (20 yr)

Year 0 Year 10 Year 30

Draw period

Years 1–10

Borrow freely up to your limit. Pay interest-only. Revolving — repay and re-borrow as needed.

Repayment period

Years 11–30

No more draws. Pay principal + interest. Monthly payments increase. Balance must reach zero.

HELOC vs home equity loan — quick comparison

HELOC

Revolving credit line

Variable rate (prime + margin)

Draw as needed, interest-only

Flexible — ideal for ongoing costs

Home equity loan

Lump sum disbursement

Fixed rate for full term

Fixed monthly payments from day 1

Predictable — ideal for one-time costs

Compare them side-by-side with our calculator →

Frequently asked questions

Everything you need to know about HELOCs

Expert-reviewed answers to the most common HELOC questions. Updated regularly as rules and rates change.

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Related calculators

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Eligibility calculator

LTV, DTI & credit check

Payment calculator

Monthly payment estimate

DTI ratio calculator

Check debt-to-income

Current HELOC snapshot

Avg rate today 8.25%

Min credit score 620–640

Typical LTV limit 85%

Max DTI allowed 43–50%

Approval time 2–6 weeks

Typical draw period 10 years

Still have questions?

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HELOC guides & resources

Learn everything about
home equity borrowing

Expert-written guides reviewed by licensed mortgage professionals. Updated regularly as rates and rules change.

View all guides

18 min read Beginner friendly Updated May 2026

⭐ Featured guide · HELOC basics

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