HELOC Amount Calculator

HELOC Amount Calculator to calculate how much you can borrow against your home with a home equity line of credit. The HELOC amount calculator will calculate the HELOC max amount you can borrow based on your home value and mortgage balance. Most lenders allow you to borrow up to 85% of your home value minus what you owe on your mortgage.

The maximum amount that you can borrow with a HELOC is $132,500.00.

Maximum HELOC Amount

What is the maximum HELOC amount a borrower can borrower? The maximum HELOC loan amount is determined by your home value, mortgage balance, and the cash-out amount set by your bank. Most banks allow you to borrow up to 85% of your home equity minus the mortgage balance. However, some banks may even allow you to borrow up to 90%, but it may come with a higher HELOC interest rate. You will need to shop around and see what kind of HELOC rates you can get and the maximum amount that you can borrow against your home.

How to calculate Max HELOC amount?

Following is the HELOC max amount formula on how to calculate HELOC amount or the HELOC limit. HELOC Max Amount = (L * H) - M, where H = Home value M = Mortgage balance L = HELOC borrow limit as a decimal

HELOC Max Amount Example

For example, your home value is worth $500,000 with a mortgage balance of $300,000, and the bank allows you to borrow up to 85% of your home value, following is how you would calculate the maximum amount of money you can borrow with a HELOC loan. HELOC Max Amount = 0.85*$500,000 - $300,000 = $425,000 - $300,000 = $125,000 Hence, $125,000 is your HELOC limit. You can borrow up to $125,000 with a home equity line of credit against your home.

What factors can impact your max HELOC amount?

There are other factors other than your home value and mortgage balance that may impact your max HELOC amount.

1. Credit Score

A higher credit score will get you a lower HELOC interest rate, and hence more borrowing power. A lower credit score will negatively impact the amount that you can borrow as the interest rates are higher for borrowers with bad credit.

2. Interest Rate

The HELOC interest rate is based on the underlying U.S. Prime Rate. When the prime rate goes up, so does the interest rate for HELOC. A higher interest rate means higher monthly payments and which affects how much you can afford to borrow.

3. Debt-to-income Ratio

The DTI ratio determines your monthly debt relative to your income. The higher the DTI ratio, the less money you can borrow from a HELOC. Banks use the DTI to make sure you don't have too much debt and can handle the additional HELOC loan.