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How to Calculate HELOC

Calculate your maximum HELOC credit line from your home equity and combined LTV, plus the interest-only draw payment and the repayment payment that follows.

The Formula

maxCreditLine = homeValue * maxLTV / 100 - mortgageBalance; drawPayment = creditLine * APR / 100 / 12

The heloc formula uses the mathematical relationship: maxCreditLine = homeValue * maxLTV / 100 - mortgageBalance; drawPayment = creditLine * APR / 100 / 12. Each variable in the formula represents a measurable quantity that affects the final result.

Step-by-Step Method

  1. 1Identify all input values needed for the heloc calculation.
  2. 2Substitute your known values into the formula: maxCreditLine = homeValue * maxLTV / 100 - mortgageBalance; .
  3. 3Perform the arithmetic operations in the correct order (PEMDAS/BODMAS).
  4. 4Check that your result has the correct units and is within a reasonable range.
  5. 5Verify using the interactive HELOC Calculator to confirm your answer.

Related Topics

HELOChome equity line of creditdraw periodinterest onlyLTV

Use the Interactive Calculator

Skip the manual math — get instant results with our free HELOC calculator.

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