HELOC Calculator: How Much Can I Get?

This free home equity line of credit (HELOC) qualification calculator is designed to help you estimate how much you can borrow on a HELOC loan and how much equity you need. 

The calculator lets you account for different loan-to-value requirements, which can vary depending on your lender or credit score. It also makes it easy to see how the maximum credit line you can obtain might change if your home appraises for more or less than you expect.

Home Equity Line of Credit Overview

A Home Equity Line of Credit (HELOC) is a flexible borrowing option secured by the equity in your home. It operates like a revolving line of credit, allowing you to borrow funds up to a predetermined limit, typically based on the difference between your home’s current market value and your outstanding mortgage balance. This is different from a home equity loan, which many confuse with a HELOC. 

HELOCs often have variable interest rates and are commonly used for home improvements, debt consolidation, or other expenses. Review HELOC pros and cons to ensure you’re prepared for the unpredictability of a line of credit. 

Repayment terms vary but typically include a draw period during which you can access funds, followed by a repayment period where you make regular payments to cover both principal and interest. 

How Much Can You Borrow With a HELOC?

The amount you can borrow with any home equity line of credit is determined by how much equity you have – that is, the current value of your home minus the balance owed on your mortgage. So, if your home is worth $250,000 and you owe $150,000 on your mortgage, you have $100,000 in home equity.

That doesn’t mean you’ll be able to borrow up to $100,000, though. Few lenders these days will allow you to borrow the full amount of your home equity.

As a rule of thumb, lenders generally allow you to borrow up to 75%-90% of your available equity, depending on your credit and income. Using those guidelines with the example above, you’d be able to establish a line of credit of up to $80,000 or $90,000 with a HELOC.

HELOC Qualifications 

Having equity alone doesn’t guarantee you’ll be able to qualify for a HELOC. Requirements will vary by lender, but they generally will determine your eligibility based on the following: 

  1. Home equity: Most lenders want you to have at least 20% equity in your home. 
  2. Credit score: HELOC lenders usually require a minimum FICO score of 660, and many have even stricter requirements.
  3. Debt-to-income ratio: Your debt-to-income (DTI) ratio should not exceed 45%, meaning your total monthly debts, including mortgage payments and all other loans, should not exceed 45% of your gross monthly income. 

Once you’ve been preapproved, you can use our HELOC payoff calculator to figure out your amortization schedule. 

If you are considering taking out a home equity line of credit, make sure you’re ready to buy a home in 2024’s market. Requirements will vary by lender, and so will interest rates.