Investment Property HELOC Calculator
The equity sitting in your rentals is buying power for the next deal. Enter a property's value, what you owe, and a lender's loan-to-value cap to see how much you can pull with a HELOC, home equity loan, or cash-out refinance — and how many more doors it funds.
Results
Tappable Equity
$0
Current Equity
$0
0% of value
Monthly Interest
$0
on tapped amount
Tappable Equity = (Value × Max CLTV) − Current Balance
How to Calculate Tappable Equity (Formula & Example)
Lenders don't let you borrow against every dollar of equity. They cap your combined loan-to-value — first mortgage plus the new line — at a set percentage. Tappable equity is whatever room is left under that cap:
Tappable Equity = (Property Value × Max CLTV) − Current Loan Balance
Worked example
Your rental is worth $300,000 and you owe $150,000 — that's $150,000 of equity, or 50% of the value. But a lender capping investment-property borrowing at 75% CLTV will only allow $225,000 of total debt. Subtract your $150,000 balance and you can tap about $75,000 — not the full $150,000 of equity. At 25% down on a $200,000 next purchase, that funds the down payment on one more deal.
Can You Get a HELOC on a Rental or Investment Property?
Yes — but it's a different animal than the HELOC on your house. Banks treat a loan against a property you don't live in as higher risk, so the terms tighten across the board:
- Lower CLTV caps. Where a primary residence might allow 85–90% combined loan-to-value, investment properties are commonly limited to 70–80%.
- Higher rates. Expect a premium over primary-residence home equity products to compensate for the added risk.
- Stricter qualifying. Higher credit-score floors, cash reserves covering several months of payments, and more scrutiny of your rental income.
- Fewer lenders. Many big banks don't offer them at all. Portfolio lenders, credit unions, and local/community banks are the usual sources.
Because availability varies so much, treat the tappable-equity number above as your ceiling, then confirm the actual program, CLTV, and rate with a lender before you build it into a deal.
HELOC vs. Home Equity Loan vs. Cash-Out Refinance
All three pull equity out of a property you already own, and all three are bounded by the same CLTV math. They differ in structure:
- HELOC. A revolving line you draw and repay as needed, usually with an interest-only draw period. Best for staged rehabs or rotating down payments across several deals.
- Home equity loan. A lump sum at a fixed rate and fixed term. Best when you have a single, known use for the money.
- Cash-out refinance. Replaces your existing first mortgage with a larger one and hands you the difference. Best when you can also improve your first-mortgage rate or want one consolidated payment — a frequent move in the BRRRR strategy.
Not sure which financing fits your situation? Compare investor loan options in the lender directory or run the numbers on your next deal with the cash-on-cash calculator.