Home Equity & HELOC Calculator
Calculate your home equity, maximum HELOC borrowing amount, and estimated monthly payments on a home equity loan or line of credit.
Enter Your Details
Understanding Home Equity
Home equity is the difference between your home's current market value and what you owe on your mortgage. It grows as you make mortgage payments (reducing the balance) and as your home appreciates in value. You can access this equity through a HELOC (Home Equity Line of Credit) or a home equity loan.
HELOC vs Home Equity Loan
HELOC: A revolving line of credit (like a credit card secured by your home). Draw funds as needed during the "draw period" (typically 10 years), paying interest only on what you use. After the draw period, you repay principal + interest over the remaining term. Rates are usually variable.
Home Equity Loan: A lump sum loan with fixed payments and a fixed rate. You receive all the money upfront and repay over a set term (5-20 years). Better if you know exactly how much you need and want payment predictability.
Tax Deductibility
Interest on home equity loans and HELOCs is tax-deductible if the funds are used to "buy, build, or substantially improve" the home securing the loan. Interest is NOT deductible if used for other purposes (debt consolidation, car purchase, etc.).
Risks to Consider
Your home is the collateral. If you can't make payments, you could face foreclosure. Don't borrow against your equity for wants (vacations, consumer purchases). Common smart uses include home improvements (which add value), major repairs, and education funding. Check your overall debt picture with our Debt-to-Income Calculator.