Line of Credit Calculator

Estimate your available home equity line of credit (HELOC) based on your home's value and existing mortgage

Home Equity Information

Your Home's Appraised Value ($)

Mortgage(s) You Owe ($)

Loan-to-Value (LTV) Ratio: 80%

Maximum LTV ratio lenders will allow (typically 80-85%)

Credit Line Results

Home Equity

-

$

Current value minus mortgage balance

Current LTV Ratio

-

%

Mortgage balance ÷ home value

Available Credit Line

-

$

Based on selected LTV ratio

Home Value Breakdown

60%

Mortgage Balance

Available Equity

Potential Credit Line

Equity Breakdown

Description	Amount

About LTV Ratios

Lenders typically allow:

80-85% LTV for HELOCs

90-95% LTV for cash-out refinances

97% LTV for first-time homebuyers

Potential Uses

Home improvements

Debt consolidation

Education expenses

Emergency fund

About Home Equity Lines

A Home Equity Line of Credit (HELOC) is a revolving credit line that uses your home's equity as collateral. You can borrow up to your credit limit during the "draw period" (typically 10 years), then repay during the "repayment period."

Note: This calculator provides estimates only. Actual credit limits and terms depend on your credit score, income, and lender policies.

This calculator helps estimate your potential home equity line of credit. Print Results

What is a Line of Credit Calculator?

A Line of Credit (LOC) Calculator helps you estimate payments, interest costs, and repayment timelines for revolving credit accounts. Unlike traditional loans, LOCs allow repeated borrowing up to your credit limit.

Key Features:

• Calculates minimum payments based on current balance

• Estimates interest costs for different draw amounts

• Compares interest-only vs. principal+interest repayment

• Models different draw/payback scenarios

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How Line of Credit Interest Works

Most LOCs use daily simple interest calculated as:

Daily Interest = (Current Balance × APR) ÷ 365

Common LOC Types:

Type	APR Range	Best For
Personal LOC	8-24%	Emergency funds, large purchases
HELOC	4-12%	Home improvements (secured by equity)
Business LOC	6-20%	Cash flow management

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Line of Credit Calculator Inputs

1. Credit Limit ($10,000 - $500,000)

2. Current Balance (Amount drawn)

3. APR (Annual Percentage Rate)

4. Repayment Terms:

   • Interest-only period

   • Fixed amortization (e.g., 5-20 years)

   • Minimum payment (% of balance)

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Example Calculation

$50,000 HELOC at 7.5% APR

• Draw Amount: $20,000

• Repayment: 10-year amortization

Results:

• Monthly Payment: $237 (principal + interest)

• Total Interest: $8,440 over 10 years

• Interest-Only Payment: $125/month

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Advanced Calculation Options

Variable Rate Projections

Model rate increases (e.g., 0.25% every 6 months)

Draw/Payback Scenarios

• Borrow $15k for 6 months → pay back $5k → borrow $10k

Payment Strategies

• Impact of paying 2× the minimum

• Lump-sum payoff effects