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Calculator Answers

HELOC Calculator

Blake Boege
Written by Blake Boege · Founder, Calculator Answers

A HELOC calculator (Home Equity Line of Credit) is a financial planning utility designed to model the payments of a revolving loan secured by home equity. A HELOC typically consists of two phases: a draw period (usually 5 to 10 years) where the borrower can borrow funds and only pays monthly interest, followed by a repayment period (usually 10 to 20 years) where the outstanding balance is amortized and paid off in equal monthly payments. Homeowners use this calculator to estimate monthly cash flow requirements and project the total interest cost of borrowing against their home equity.

Estimate your Home Equity Line of Credit (HELOC) monthly payments for both the interest-only draw phase and the fully amortizing repayment phase. Project the total interest cost over the life of the loan.

See also: Loan Payment Calculator – Amortization Tool, Mortgage Calculator, and Amortization Calculator.

Quick Answer

Calculate your HELOC payments for both the draw and repayment periods. Enter the loan amount, interest rate, draw period, and repayment term.

HELOC Parameters

$

The amount drawn or the target balance on the line of credit.

%

Variable or fixed interest rate.

years

Interest-only payment phase.

years

Amortizing principal + interest phase.

HELOC Phases Overview

  • Draw Period: You pay interest on whatever balance you borrow. The principal remains unpaid unless you make voluntary extra payments.
  • Repayment Period: Borrowing ends, and the balance is locked. The loan compounds interest and is paid off over the remaining term.
  • Payment Shock: Because principal repayment begins, your monthly payments can rise significantly once the draw period ends.
Payment estimate

Repayment Period Payment

$477.83/mo

Draw phase payment: $333.33/mo (interest-only)

HELOC Balance$50,000.00
Interest Rate (APR)8%
Draw Period (interest-only)10 years
Repayment Period (amortizing)15 years
Monthly Payment (Draw)$333.33
Monthly Payment (Repayment)$477.83
Total Interest Cost$76,008.69
Total Payments (Principal + Interest)$126,008.69

HELOC interest rates are typically variable and tied to the Prime Rate. Payment amounts will fluctuate if interest rates change. This is an educational planning estimate.

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Examples

$50,000 at 8% APR (10 yr draw, 15 yr repayment)

Draw: $333.33/mo · Repayment: $477.83/mo

$100,000 at 7.5% APR (5 yr draw, 20 yr repayment)

Draw: $625.00/mo · Repayment: $805.59/mo

$25,000 at 9% APR (10 yr draw, 10 yr repayment)

Draw: $187.50/mo · Repayment: $316.69/mo

How it works

The calculator splits the HELOC lifespan into two phases. In the draw period, payments cover only the interest accrued on the borrowed amount. In the repayment period, the principal balance is amortized over the remaining months using standard mortgage math.

Interest-Only Payment (Draw) · Payment = P × (APR / 12)

Amortizing Payment (Repayment) · Payment = P × i / (1 − (1 + i)^−(12 × r))

Where P is the borrowed principal, i is the monthly interest rate (APR / 12 / 100), and r is the repayment period in years.

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Loan Payment Calculator – Amortization ToolCalculate monthly payments, total interest, and payoff time using our loan payment calculator. Enter the loan amount, annual interest rate, and term.Mortgage CalculatorEstimate a monthly mortgage payment with principal, interest, taxes, insurance, PMI, and HOA dues. Works for any home loan.Amortization CalculatorCalculate your monthly loan payments, see the principal and interest breakdown, and generate a full month-by-month amortization schedule for any fixed-rate loan.Home Equity Loan CalculatorEstimate your available home equity, the maximum amount you can borrow based on LTV limits, and your estimated monthly payment and interest cost.

Frequently asked questions

A HELOC (Home Equity Line of Credit) is a revolving line of credit secured by the equity in your home. You can borrow, repay, and borrow again up to your credit limit. It typically has a variable interest rate and two distinct phases: a draw period and a repayment period.

During the draw period (typically 5 to 10 years), you can borrow funds and are usually only required to make interest-only payments. During the repayment period (typically 10 to 20 years), you can no longer draw money, and you must make monthly payments that include both principal and interest to pay off the balance.

During the draw period, interest-only payments are calculated as: Payment = Balance × (APR / 12). During the repayment period, the outstanding balance is amortized over the remaining term: Payment = Balance × i / (1 − (1 + i)^−N), where i is the monthly rate and N is the total repayment months.

If the APR is 0%, the draw period payment is $0, and the repayment period monthly payment simplifies to: Principal / Repayment Months.

Most HELOCs have variable interest rates tied to an index like the Prime Rate. This means your interest rate, and consequently your monthly payment, can fluctuate over time. Some lenders offer fixed-rate options for specific balance portions.