See how much credit your home may support. Adjust limits, costs, reserves, and draw size. Make smarter borrowing decisions with clear numbers you trust.
| Scenario | Home value | Existing liens | Max CLTV | Estimated limit |
|---|---|---|---|---|
| Conservative | $400,000 | $250,000 | 80% | $70,000 |
| Typical | $500,000 | $290,000 | 85% | $135,000 |
| High equity | $650,000 | $240,000 | 90% | $345,000 |
1) Total existing liens
Total Existing Liens = Mortgage Balance + Other Liens
2) Capacity by CLTV
Max Total Debt (CLTV) = Home Value × (Max CLTV % ÷ 100)
Capacity by CLTV = Max Total Debt (CLTV) − Total Existing Liens
3) Optional capacity by LTV cap
If an LTV cap is provided:
Max Total Debt (LTV) = Home Value × (Max LTV % ÷ 100)
Capacity by LTV = Max Total Debt (LTV) − Total Existing Liens
4) Maximum HELOC limit
Max HELOC Limit = min(Capacity by CLTV, Capacity by LTV)
(If LTV cap is blank, CLTV alone is used.)
5) Usable funds after costs and reserve
Usable = Max HELOC Limit − Closing Costs − Cash Reserve Buffer
6) Payment estimates
Interest-only Payment (monthly) = Draw × (Rate % ÷ 100 ÷ 12)
Amortizing Payment uses the standard loan payment formula (PMT).
Borrowing capacity starts with market value and total existing liens. Lenders often apply a combined loan‑to‑value limit, such as 80% to 90%. With a $500,000 home and $290,000 in liens, an 85% CLTV cap permits total debt of $425,000, leaving about $135,000 of potential line availability before any deductions.
Small percentage moves can add or remove meaningful room. At $500,000 value, 80% CLTV allows $400,000 total debt, while 85% allows $425,000. Using the same $290,000 lien total, estimated capacity changes from $110,000 to $135,000, a $25,000 swing that can decide whether a project fits.
Your approved limit is not the same as spendable cash. If closing costs are $1,200 and you set a $5,000 reserve buffer, a $135,000 line translates to roughly $128,800 of usable funds. A reserve is a practical stress test, especially when variable rates rise or income is seasonal.
For planning, this calculator estimates both interest‑only and amortizing payments. Interest‑only is draw × rate ÷ 12. At 9.5% APR, a $40,000 draw costs about $316.67 per month. The amortizing estimate assumes principal repayment over the chosen term, so it highlights the longer‑run affordability if the line converts or principal is required.
Use the chart to compare draws from $0 up to the estimated maximum. A smaller draw can keep CLTV comfortably below the cap and preserve flexibility for future needs, while still funding renovations or consolidation. Re‑run scenarios after a new appraisal, a mortgage paydown, or changes in planned costs to keep estimates current. For example, if liens fall to $260,000, the same 85% cap yields $165,000 capacity. If value drops to $470,000, capacity becomes about $109,500. Tracking both value and balances helps you avoid surprises at underwriting. during approval.
It is an estimate of the maximum line size a lender may allow, based on your home value, existing liens, and a combined loan‑to‑value limit.
Fees, required reserves, and lender holdbacks reduce spendable proceeds. Subtracting closing costs and a buffer gives a more realistic amount for budgeting.
Many programs fall around 75% to 90% CLTV, depending on credit, property type, and lender policy. Use your offer or a conservative assumption for planning.
They are planning estimates based on your entered rate and term. Actual payments depend on rate changes, payment rules, and whether the line is interest‑only or amortizing.
Not always. Borrowing less can keep CLTV lower, reduce payment risk, and preserve flexibility. Use the chart to compare payment impacts at different draw amounts.
Home value, existing lien balances, and the CLTV cap drive the limit. Closing costs, reserves, and your draw amount mostly influence usable cash and payment stress.
Important Note: All the Calculators listed in this site are for educational purpose only and we do not guarentee the accuracy of results. Please do consult with other sources as well.