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 remaining mortgage balance. On a $400,000 home with a $250,000 mortgage balance: 85% × $400,000 = $340,000 maximum. Minus the $250,000 owed = $90,000 available HELOC limit. Lenders also require a minimum credit score of 620–680, a debt-to-income ratio below 43%, and usually at least 15%–20% home equity to qualify.

How is a HELOC payment calculated?

During the draw period (typically 10 years), you pay interest only on the amount you've borrowed. On a $50,000 HELOC balance at 8.5% APR, the monthly interest-only payment is about $354. During the repayment period (typically 20 years after the draw period closes), you pay principal plus interest. That same $50,000 at 8.5% over 20 years becomes approximately $434/month.

What is a combined loan-to-value ratio?

Combined loan-to-value (CLTV) is the total of all loans secured by your home divided by its appraised value. CLTV = (mortgage balance + HELOC limit) ÷ home value. Most lenders cap CLTV at 85%. Example: $250,000 mortgage + $90,000 HELOC = $340,000 total. $340,000 ÷ $400,000 home = 85% CLTV.

Are HELOC rates fixed or variable?

Most HELOCs have variable interest rates tied to the prime rate. As of May 2026, the prime rate is 7.50%, and HELOC rates typically run prime plus 0.5%–2%, putting most HELOC rates at 8%–9.5%. Some lenders offer fixed-rate HELOC options or allow you to lock in a portion of your balance at a fixed rate. Variable rates mean your payment can change when the Federal Reserve changes benchmark rates.

HELOC Calculator 2026 — How Much Can You Borrow Against Your Home?

A HELOC (home equity line of credit) lets you borrow against the equity in your home — the difference between what your home is worth and what you still owe on your mortgage. Most lenders let you access up to 85% of your home’s value minus your mortgage balance, with rates in the 8%–9.5% range in May 2026. Here’s how to calculate your limit and what payments will look like.

How to Calculate Your HELOC Limit

The formula every lender uses:

Maximum HELOC = (Home Value × Max CLTV%) − Mortgage Balance

Most lenders set max CLTV at 85%. Some go up to 90% or 95% for well-qualified borrowers.

Home Value	Mortgage Balance	Max CLTV	Max HELOC
$300,000	$180,000	85%	$75,000
$400,000	$250,000	85%	$90,000
$500,000	$300,000	85%	$125,000
$600,000	$350,000	85%	$160,000
$750,000	$400,000	85%	$237,500
$400,000	$200,000	90%	$160,000

Example calculation on a $425,000 home:

Home value: $425,000
Remaining mortgage: $280,000
Lender max CLTV: 85%
Max combined debt: $425,000 × 0.85 = $361,250
HELOC limit: $361,250 − $280,000 = $81,250

HELOC Payment Calculator

During the Draw Period (Typically Years 1–10)

Most HELOCs are interest-only during the draw period. You only pay interest on what you’ve actually borrowed — not the full credit limit.

Formula: Monthly payment = (Balance × Annual Rate) ÷ 12

HELOC Balance	Rate 8.0%	Rate 8.5%	Rate 9.0%	Rate 9.5%
$25,000	$167/mo	$177/mo	$188/mo	$198/mo
$50,000	$333/mo	$354/mo	$375/mo	$396/mo
$75,000	$500/mo	$531/mo	$563/mo	$594/mo
$100,000	$667/mo	$708/mo	$750/mo	$792/mo
$150,000	$1,000/mo	$1,063/mo	$1,125/mo	$1,188/mo

During the Repayment Period (Typically Years 11–30)

When the draw period ends, the outstanding balance converts to a fully-amortized loan — principal plus interest every month.

Example — $75,000 balance, 8.5% rate, 20-year repayment: Monthly payment: $651/month (compared to $531/month interest-only)

HELOC Balance	Rate 8.5%, 20-yr repayment	Rate 9.0%, 20-yr repayment
$25,000	$217/mo	$225/mo
$50,000	$434/mo	$450/mo
$75,000	$651/mo	$675/mo
$100,000	$868/mo	$900/mo

Qualifying Requirements

Even if your equity supports a large HELOC, you must also meet lender underwriting standards:

Requirement	Typical Minimum
Credit score	620 (most lenders); 700+ for best rates
Debt-to-income ratio	43% or lower
Home equity	15%–20% must remain after HELOC
Employment/income	2 years verifiable income history
Property type	Primary residence or second home

DTI calculation with a HELOC: Lenders calculate DTI using the maximum potential payment on your HELOC — typically using a fully-amortized rate, not just the interest-only draw-period rate. This prevents you from borrowing more than you could actually repay if the draw period ended.

Current HELOC Rates (May 2026)

HELOC rates are variable and tied to the prime rate. As of May 2026, the prime rate is 7.50%.

Lender Type	Typical Rate Range
Credit unions	8.00%–8.75%
Community banks	8.25%–9.00%
National banks	8.50%–9.25%
Online lenders	8.25%–9.00%

Rate tip: HELOCs are variable. If you’re nervous about rates rising, ask lenders about rate caps (maximum rate the HELOC can reach) and fixed-rate conversion options that let you lock in part of your balance.

HELOC vs. Home Equity Loan — Which Calculator to Use

	HELOC	Home Equity Loan
Payment type	Variable; interest-only during draw	Fixed monthly payment from day one
Rate type	Variable (prime + margin)	Fixed
Best for	Ongoing expenses, renovations over time	One-time lump sum need (e.g., debt payoff)
Calculator to use	This page (HELOC)	Amortization calculator

If you need a fixed payment and a lump sum, a home equity loan is simpler. If you need flexible access to funds over months or years — like a phased home renovation — a HELOC is more cost-efficient because you only pay interest on what you draw.

Written by WealthVieu

WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.

The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy