HELOC Calculator
Home Equity Line of Credit (HELOC) calculators work in two phases: a draw period where you can pull money out and typically pay interest only, and a repayment period where you pay down the balance.
HELOC Details
Results
Summary
Enter a balance to see your payment estimates.
How HELOC payments work
During the draw period, most HELOCs require only interest payments on the amount you've borrowed. Some lenders offer an interest-only draw period for a set number of years (often 5–10).
Once the draw period ends, you enter repayment — typically the remaining balance is spread over 10–20 years at the repayment rate, which is often 0.5–2% higher than the draw rate.
Amortizing Payment = Balance × [r(1+r)n] ÷ [(1+r)n − 1]
Variable rate risk
HELOC rates are typically variable — they move with the prime rate. Your payments can go up or down over time. This calculator uses fixed rates for estimation.
Paying down opens up credit again
HELOCs aren't like traditional term loans where you pay down and you're done. As you pay the balance down, that credit becomes available again — you can draw on it throughout the draw period. The limit stays the same; only the used portion shrinks.
How it works
A Home Equity Line of Credit works in two phases. During the draw period, you borrow money and typically make only interest payments. During the repayment period, you can no longer borrow and must repay principal plus interest on the outstanding balance.
This calculator splits the HELOC into up to three segments: draw period, interest-only period, and repayment period — so you can see exactly what you owe and when the payment shock hits.
The payment shock is real
When the draw period ends, your payment can jump 2–5× because you are repaying principal in addition to interest. Plan for this before opening a HELOC, not after.
For educational purposes only. Not financial advice. Consult a lender for actual HELOC terms.