HELOC Calculator — home equity line payment/cost.
HELOC Calculator
Estimate draw-period payments, repayment payments, and total interest for a home equity line of credit.
HELOC inputs
HELOC snapshot
How HELOC payments work
A HELOC is a revolving line of credit secured by home equity. During the draw period, many borrowers pay interest-only on the amount they have actually borrowed. After the draw period ends, the line may transition to a repayment period where payments include both principal and interest over a fixed term.
Because the monthly payment depends on the actual balance used, not just the full credit limit, this estimate focuses on the amount you have used and the rate applied to that balance. A lower balance, a lower rate, or a shorter repayment period can reduce cost significantly.
It is also important to separate the credit line from the balance used. A borrower’s monthly obligations may be small during the draw phase but increase once principal repayment begins.
- Interest-only payments are common during the draw period.
- Repayment periods often require amortizing principal and interest.
- Higher balances or longer repayment terms increase total interest.
- Borrowers should check lender-specific draw and repayment rules.
Frequently asked questions
What is the draw period?
The draw period is the time when you can borrow against the HELOC and often make interest-only payments on the balance used.
What happens after the draw period?
During the repayment period, the balance is typically amortized over a set period, so the payment often increases as principal repayment begins.
How is the draw-period payment estimated?
This estimate assumes the amount used is the drawn balance and that the monthly payment is interest-only at the stated HELOC rate during the draw period.
Does the calculator guarantee lender terms?
No. HELOC terms, rate adjustments, and final approval depend on lender underwriting, credit profile, home value, equity, and market conditions.
Why does my payment rise after the draw period?
Once repayment begins, principal reduction is added to the payment, which often raises the monthly amount compared with the interest-only draw period.
What else should I consider?
Lender rules, variable-rate adjustments, fees, annual percentage rate changes, and the home’s value can affect the actual cost and payment schedule.