HELOC Calculator
The interest-only payment on a home equity line of credit while you can draw on it, the larger payment once repayment starts, and the total interest.
Result…
How it's calculated
Draw period: payment = balance × rate ÷ 12 (interest only) Repayment: payment = B × i ÷ (1 − (1 + i)^−n), i = repayment rate ÷ 12 Total interest = draw payment × draw months + (repayment payment × n − B)
A HELOC is a credit line secured on your home. During the draw period you can borrow and usually pay only the interest, so the balance stays the same. When it ends, the balance is repaid with interest over the repayment period, and the payment jumps. Paying principal during the draw period softens that jump.
Your numbers, step by step
About the HELOC calculator
This HELOC calculator shows the two stages of a home equity line of credit. During the draw period you can borrow against the line and usually pay only the interest, so the balance does not fall. When the draw period ends, the balance is repaid with interest over the repayment period and the payment jumps. Enter the amount drawn, the rate, both periods and the rate you expect while repaying, and it works out the interest-only payment, the repayment payment, how much the payment rises, and the interest paid in each stage and in total. HELOC rates are usually variable, so the separate repayment rate lets you test a rise. The working is shown with your numbers. For a fixed lump sum instead of a credit line, use the home equity loan calculator.
How to use it
- Enter the “Amount drawn” you expect to owe on the line.
- Enter the “Interest rate” for the draw period.
- Enter the “Draw period” and the “Repayment period” in years; a draw period of 0 starts repaying at once.
- Enter the “Rate when repaying”: the same rate, or a higher one to see what a rise would do.
- Read the interest-only payment, the payment when repaying and the total interest.
Worked example
50,000 drawn at 8.5% with a 10-year draw period and 20 years to repay. While drawing, the payment is 354.17 a month, interest only, adding up to 42,500. Repaying at 8.5% costs 433.91 a month, 79.74 more, with 54,138.79 of interest, so 96,638.79 in all. If the rate rises to 10.5% for repayment, the payment becomes 499.19 and the total interest 112,305.59.
Updated
Questions people ask
How is a HELOC payment calculated?
In the draw period it is usually the balance × the yearly rate ÷ 12, which covers only the interest. In the repayment period it is a normal loan payment that repays the balance over the months left.
Why does the payment go up when the draw period ends?
The interest-only payment repays none of the balance. Once repayment starts, every payment must also pay off part of the balance, so it rises, sometimes sharply.
What happens to my HELOC if rates change?
Most HELOC rates are variable and move with the lender's reference rate, so payments rise and fall. Enter a higher “Rate when repaying” to see how a rise would affect you.
What is a common HELOC mistake?
Budgeting only for the interest-only payment. Plan for the larger repayment payment from the start, or pay some principal during the draw period.
What does this calculator not cover?
It assumes the whole amount is drawn at the start and each rate holds for its period. Draw rules, minimum payments and fees vary by lender and country, and the home secures the line, so check the terms with the lender or a financial adviser.