Our HELOC calculator helps you estimate how much you can borrow, what your monthly payment might be, and how factors like interest rates and loan terms impact costs.
Whether you’re planning home improvements or consolidating debt, this tool makes it easy to explore your options and plan your next steps.
How is a HELOC monthly payment calculated?
Our calculator estimates your HELOC monthly payment based on the interest rate, the initial draw amount, and the loan term you input.
For example, if you enter an initial draw amount of $10,000, an annual interest rate of 8%, and a 30-year loan term, our calculator will perform this math:
1. Convert the annual interest rate to a monthly rate:
8% ÷ 12 = 0.0067 (monthly interest rate).
2. Multiply the initial draw amount by the monthly interest rate:
10,000 × 0.0067 = 67 (monthly interest cost).
3. Add repayment toward the principal (if required during the draw period):
If the calculator shows a repayment amount of $6.38, your total monthly payment would be:
67 + 6.38 = $73.38
Your HELOC monthly payment might be around $73.38.
Experiment with different draw amounts, terms, and interest rates to see how these numbers affect your monthly payment.
How is LTV calculated for a HELOC?
LTV is the percentage of your home’s value that’s tied to debt, including your mortgage and any HELOCs. Lenders use this ratio to determine how much home equity you can borrow.
Our HELOC calculator determines your LTV using your home’s estimated value and outstanding mortgage balance. If you input a home value of $600,000 and a mortgage balance of $200,000, our calculator will:
1. Divide your mortgage balance by your home’s value:
200,000 ÷ 600,000 = 0.3333
2. Convert this to a percentage:
0.3333 × 100 = 33.33% LTV
Lenders typically cap LTV at 80%, meaning the total debt on your home (including the HELOC) can’t exceed 80% of its value. You can adjust your home value or mortgage balance in the calculator to see how these factors affect your eligibility. The lower your LTV, the more you might be able to borrow.
How much you can borrow with a HELOC, and how it’s calculated
How much money you can borrow with a HELOC depends on your estimated property value, your outstanding mortgage balance, and the lender’s LTV limit. Our calculator uses these inputs to determine your eligible credit line.
If you input a home value of $600,000, a mortgage balance of $200,000, and an LTV limit of 80%, our calculator will:
1. Multiply your home value by the LTV limit to find the maximum loan amount allowed:
600,000 × 0.80 = $480,000
2. Subtract your outstanding mortgage balance to find your eligible line of credit:
480,000 − 200,000 = $280,000
This means you could qualify for a HELOC of up to $280,000.
You can use our calculator to test different scenarios, like reducing your mortgage balance or adjusting the LTV limit, to find a balance that works for your goals. A larger line of credit offers more borrowing power but could also lead to higher monthly payments.
How is HELOC interest rate calculated?
The housing market, Federal Reserve policies, and your individual borrower profile (think credit score, income, and LTV) all determine your HELOC interest rate. As of November 2024, average HELOC rates tend to range from 7.93% to 10.31%.
This table shows current interest rates from some of the best HELOC lenders:
All loans are subject to credit approval, membership and loan program requirements. Not all applicants qualify for the lowest rates and may be offered credit at higher rates or with different terms. Hazard insurance and, if applicable, flood insurance is required. Borrowing limits apply based on your home’s value. Home loans are not available in Texas. Conditions and restrictions may apply. Rates, loan programs, terms, and conditions are subject to change without notice.
[1] APR = Annual Percentage Rate. The introductory APR is fixed for one year (twelve months). After one year, the APR is variable based on the U.S. Prime Rate as published in the Wall Street Journal, plus a margin. To obtain an introductory rate, borrower(s) must meet credit and loan program requirements, including, but not limited to: (1) maximum Combined Loan-to-Value (CLTV) of 75%; (2) minimum VantageScore 4.0 credit score of 720; (3) an initial draw of at least $25,000 is taken at account opening and the balance must be maintained for at least 12 consecutive months; (4) automatic payments from a FourLeaf personal savings or checking account for the monthly HELOC payments; and (5) borrower must not have had a previous introductory rate for a FourLeaf HELOC within the past five years. Failure to meet the introductory APR conditions may result in the loss of the introductory APR, meaning the APR will change to the standard APR and will be subject to those conditions. Loan amounts over $500,000 are not available for the introductory rate.
[2] The standard APR is variable based on the U.S. Prime Rate as published in the Wall Street Journal, plus a margin (if applicable) and is subject to increase after consummation. The current standard APR is as low as 7.00% as of 10/7/2026. Not all applicants will qualify for the lowest rate and may be offered credit at higher rates and other terms based on creditworthiness. The minimum floor APR is 3.25%. HELOC rates may not exceed the maximum legal limit for Federal credit unions (currently 18%). The Prime Rate as of 10/7/2026 = 7.00%. Rates shown are based on a borrower’s primary residence, a maximum CLTV of 65%, a minimum initial draw of $25,000 taken at HELOC account opening†, and automatic payments‡ made from a FourLeaf personal savings or checking account. For Closing costs, see [3] below.
† Initial Draw of $25,000 or more: The APR includes a 0.25% discount if a Variable Rate Advance of $25,000.00 or more is drawn at account opening and the outstanding balance is maintained for at least twelve (12) consecutive months. The APR will increase by 0.25% if at any time your outstanding HELOC balance falls below $25,000.00 within the first twelve (12) months of account opening.
‡ Automatic Payments: The APR includes a 0.25% discount if your monthly HELOC payments are automatically withdrawn from your FourLeaf savings or checking account. The APR will increase by 0.25% if at any time your monthly HELOC payments are no longer automatically withdrawn from your FourLeaf savings or checking account.
[3] Closing costs for the first $500,000 will be paid by FourLeaf but must be repaid by the borrower(s) if the HELOC is closed within first 36 months of account opening. These fees generally range between $500.00 and $15,000.00 depending on the line amount, property value, location, and/or property type. Line amounts over $500,000 may be available on a case-by-case basis to qualified applicants, are not eligible for the discounted introductory rate at any time, and the borrower(s) will be responsible for mortgage-related taxes and title insurance costs on the line amount over $500,000 (up to the approved credit limit). The total third party fees generally range between $500.00 and $60,000.00 depending on the line amount, property value, location, and/or property type. Property insurance (including flood insurance, if applicable) is required.
All loans are subject to credit approval, membership and loan program requirements. Not all applicants qualify for the lowest rates and may be offered credit at higher rates or with different terms. Hazard insurance and, if applicable, flood insurance is required. Borrowing limits apply based on your home’s value. Home loans are not available in Texas. Conditions and restrictions may apply. Rates, loan programs, terms, and conditions are subject to change without notice.
[1] APR = Annual Percentage Rate. The introductory APR is fixed for one year (twelve months). After one year, the APR is variable based on the U.S. Prime Rate as published in the Wall Street Journal, plus a margin. To obtain an introductory rate, borrower(s) must meet credit and loan program requirements, including, but not limited to: (1) maximum Combined Loan-to-Value (CLTV) of 75%; (2) minimum VantageScore 4.0 credit score of 720; (3) an initial draw of at least $25,000 is taken at account opening and the balance must be maintained for at least 12 consecutive months; (4) automatic payments from a FourLeaf personal savings or checking account for the monthly HELOC payments; and (5) borrower must not have had a previous introductory rate for a FourLeaf HELOC within the past five years. Failure to meet the introductory APR conditions may result in the loss of the introductory APR, meaning the APR will change to the standard APR and will be subject to those conditions. Loan amounts over $500,000 are not available for the introductory rate.
[2] The standard APR is variable based on the U.S. Prime Rate as published in the Wall Street Journal, plus a margin (if applicable) and is subject to increase after consummation. The current standard APR is as low as 7.00% as of 10/7/2026. Not all applicants will qualify for the lowest rate and may be offered credit at higher rates and other terms based on creditworthiness. The minimum floor APR is 3.25%. HELOC rates may not exceed the maximum legal limit for Federal credit unions (currently 18%). The Prime Rate as of 10/7/2026 = 7.00%. Rates shown are based on a borrower’s primary residence, a maximum CLTV of 65%, a minimum initial draw of $25,000 taken at HELOC account opening†, and automatic payments‡ made from a FourLeaf personal savings or checking account. For Closing costs, see [3] below.
† Initial Draw of $25,000 or more: The APR includes a 0.25% discount if a Variable Rate Advance of $25,000.00 or more is drawn at account opening and the outstanding balance is maintained for at least twelve (12) consecutive months. The APR will increase by 0.25% if at any time your outstanding HELOC balance falls below $25,000.00 within the first twelve (12) months of account opening.
‡ Automatic Payments: The APR includes a 0.25% discount if your monthly HELOC payments are automatically withdrawn from your FourLeaf savings or checking account. The APR will increase by 0.25% if at any time your monthly HELOC payments are no longer automatically withdrawn from your FourLeaf savings or checking account.
[3] Closing costs for the first $500,000 will be paid by FourLeaf but must be repaid by the borrower(s) if the HELOC is closed within first 36 months of account opening. These fees generally range between $500.00 and $15,000.00 depending on the line amount, property value, location, and/or property type. Line amounts over $500,000 may be available on a case-by-case basis to qualified applicants, are not eligible for the discounted introductory rate at any time, and the borrower(s) will be responsible for mortgage-related taxes and title insurance costs on the line amount over $500,000 (up to the approved credit limit). The total third party fees generally range between $500.00 and $60,000.00 depending on the line amount, property value, location, and/or property type. Property insurance (including flood insurance, if applicable) is required.
All loans are subject to credit approval, membership and loan program requirements. Not all applicants qualify for the lowest rates and may be offered credit at higher rates or with different terms. Hazard insurance and, if applicable, flood insurance is required. Borrowing limits apply based on your home’s value. Home loans are not available in Texas. Conditions and restrictions may apply. Rates, loan programs, terms, and conditions are subject to change without notice.
[1] APR = Annual Percentage Rate. The introductory APR is fixed for one year (twelve months). After one year, the APR is variable based on the U.S. Prime Rate as published in the Wall Street Journal, plus a margin. To obtain an introductory rate, borrower(s) must meet credit and loan program requirements, including, but not limited to: (1) maximum Combined Loan-to-Value (CLTV) of 75%; (2) minimum VantageScore 4.0 credit score of 720; (3) an initial draw of at least $25,000 is taken at account opening and the balance must be maintained for at least 12 consecutive months; (4) automatic payments from a FourLeaf personal savings or checking account for the monthly HELOC payments; and (5) borrower must not have had a previous introductory rate for a FourLeaf HELOC within the past five years. Failure to meet the introductory APR conditions may result in the loss of the introductory APR, meaning the APR will change to the standard APR and will be subject to those conditions. Loan amounts over $500,000 are not available for the introductory rate.
[2] The standard APR is variable based on the U.S. Prime Rate as published in the Wall Street Journal, plus a margin (if applicable) and is subject to increase after consummation. The current standard APR is as low as 7.00% as of 10/7/2026. Not all applicants will qualify for the lowest rate and may be offered credit at higher rates and other terms based on creditworthiness. The minimum floor APR is 3.25%. HELOC rates may not exceed the maximum legal limit for Federal credit unions (currently 18%). The Prime Rate as of 10/7/2026 = 7.00%. Rates shown are based on a borrower’s primary residence, a maximum CLTV of 65%, a minimum initial draw of $25,000 taken at HELOC account opening†, and automatic payments‡ made from a FourLeaf personal savings or checking account. For Closing costs, see [3] below.
† Initial Draw of $25,000 or more: The APR includes a 0.25% discount if a Variable Rate Advance of $25,000.00 or more is drawn at account opening and the outstanding balance is maintained for at least twelve (12) consecutive months. The APR will increase by 0.25% if at any time your outstanding HELOC balance falls below $25,000.00 within the first twelve (12) months of account opening.
‡ Automatic Payments: The APR includes a 0.25% discount if your monthly HELOC payments are automatically withdrawn from your FourLeaf savings or checking account. The APR will increase by 0.25% if at any time your monthly HELOC payments are no longer automatically withdrawn from your FourLeaf savings or checking account.
[3] Closing costs for the first $500,000 will be paid by FourLeaf but must be repaid by the borrower(s) if the HELOC is closed within first 36 months of account opening. These fees generally range between $500.00 and $15,000.00 depending on the line amount, property value, location, and/or property type. Line amounts over $500,000 may be available on a case-by-case basis to qualified applicants, are not eligible for the discounted introductory rate at any time, and the borrower(s) will be responsible for mortgage-related taxes and title insurance costs on the line amount over $500,000 (up to the approved credit limit). The total third party fees generally range between $500.00 and $60,000.00 depending on the line amount, property value, location, and/or property type. Property insurance (including flood insurance, if applicable) is required.
If you input a $10,000 initial draw amount with an 8% annual interest rate into our calculator, your monthly payment would be $73.38. Here’s how that’s calculated:
Monthly interest rate:
8% ÷ 12 = 0.0067 (0.67% per month)
Monthly interest payment:
10,000 × 0.0067 = $67.00
Add principal repayment (if applicable):
In this case, the calculator includes $6.38 for principal repayment during the draw period:
67.00 + 6.38 = $73.38
This payment covers both the interest and principal. As you pay down the principal, the interest portion of your monthly payment will gradually decrease.
How can you calculate the best HELOC terms?
The best HELOC offers a low interest rate you can afford, flexible repayment terms that fit your budget, and a credit limit large enough to meet your financial needs. Here’s what to look for:
- Low interest rate: Aim for the lowest rate you can qualify for, ideally around or below the current average. Most HELOCs have variable rates that can save you money if rates drop. But some lenders let you lock in a fixed rate to protect against rising costs.
- Right line of credit amount: Don’t borrow more than you need. A smaller line of credit reduces your financial risk and keeps monthly payments manageable.
- Reasonable repayment terms: Shorter terms save you money on interest, but longer terms give you lower monthly payments. Think about what fits your budget.
Use these tips to qualify for better HELOC terms:
- Improve your credit score: Lenders often require a minimum score of 620, but a score of 780 or higher will get you the best rates.
- Lower your LTV: Pay down your mortgage or increase your home’s value with renovations.
- Compare offers: Use marketplaces like LendingTree to find competitive HELOC terms.
Avoid hidden fees: Some HELOCs charge first-draw fees, origination fees, or even annual maintenance fees. These can add up quickly, so make sure you ask about all potential costs upfront.
Thinking about getting a home equity loan instead? Try our home equity loan calculator >
About our contributors
-
Written by Cassidy Horton, MBACassidy Horton is a finance writer passionate about helping people find financial freedom. With an MBA and a bachelor's in public relations, her work has been published more than 1,000 times online.
-
Reviewed by Erin Kinkade, CFP®Erin Kinkade, CFP®, ChFC®, works as a financial planner at AAFMAA Wealth Management & Trust. Erin prepares comprehensive financial plans for military veterans and their families.