HELOC Payment Calculator

See the interest-only payment in the draw period and the higher payment when repayment starts.

How to use ↓

HELOC payment

Starting values are examples, not current rates or averages. Replace them with yours.

Step 1 Line of credit

Held steady for the whole draw period.

Optional. Blank uses the amount you borrow.

Optional. Blank keeps the same rate.

Step 2 Home and first mortgage

Your setting. Use the limit your lender gives you.

Step 3 Calculate

How to use

  1. Enter the amount you borrow and the rate for the draw period.
  2. Pick the draw period and the repayment period.
  3. Enter your home value and first mortgage to check the loan-to-value.
  4. Press Calculate to see both payments.

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How HELOC payments work

A home equity line of credit (HELOC) has two phases. During the draw period you can borrow and usually pay interest only. In the repayment period you pay back principal and interest. The payment normally rises when repayment starts, because the balance now has to be paid off.

Real HELOC rates usually change over time. This calculator uses one rate for each phase that you enter and keeps the balance steady through the draw period, so treat it as a what-if. Your home is collateral: if you cannot repay, you could lose it.

Lenders also limit the combined loan-to-value of your first mortgage plus the credit line. The limit is your setting here.

Worked example

Borrowing $50,000 at 8.5%, interest only for a 10-year draw period, costs $354.17 a month and the balance stays $50,000. When the 20-year repayment period starts, the payment becomes $433.92, which is $79.75 more. Interest over the whole line adds up to $96,635.84.

As a published check, the CFPB booklet on home equity lines of credit says $10,000 at 10% interest only is about $83 a month and at 15% is $125. This calculator gives $83.34 and $125.00: the exact 10% figure is $83.33, and interest-only payments are rounded up to the next cent.

FAQ

What is the draw period?

The first part of a HELOC, when you can borrow from the line and usually pay only interest. It is followed by the repayment period.

Why does the payment jump after the draw period?

Interest-only payments do not reduce what you owe. When repayment starts, the whole balance has to be paid off over the repayment period.

Is a HELOC rate fixed?

Usually not. Most HELOC rates change over time. This calculator uses the rate you enter for each phase.

What is combined loan-to-value?

Your first mortgage plus the new credit line, divided by your home value. This calculator uses the full credit limit, as lenders usually do.