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HELOC Payment Calculator

Estimate HELOC interest-only draw-period payments, repayment-period amortized payments, available credit, total interest, and total repayment.

Published

Repayment payment
Repayment Payment
$402.80
Draw-Period Interest
$312.50/mo
Total Interest
$46,671.18
Total Payment
$96,671.18
Available Credit
$50,000.00
Draw Period
10 years

Draw-period payment is interest-only on the current balance at 7.5% APR.

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Results update as you type.

HELOC Payment Calculator

The HELOC payment calculator estimates two distinct home equity line of credit stages: the draw period and the repayment period. During the draw period, many HELOCs require interest-only payments on the amount borrowed. During the repayment period, the line typically closes to new borrowing and the outstanding balance is repaid over time. That structure is why this page is different from the cash-out refinance calculator, which models a new mortgage, and from the line of credit calculator, which is not home-equity specific.

How to use the inputs

Enter the credit limit approved for the line and the current balance you expect to carry. The balance must be at least zero and no greater than the credit limit. Enter the interest rate as an annual percentage rate, the draw period in years, and the repayment period in years. The draw period field is displayed as context; the calculator does not multiply interest-only payments by the draw-period length to forecast future draws. Instead, it shows the monthly interest-only payment on today’s balance and the amortized payment that would repay that same balance over the repayment period.

Because HELOC rates are often variable, a single result is only a snapshot. If the rate increases, both the draw payment and repayment payment can rise. If you borrow more during the draw period, available credit falls and the future repayment payment rises. Use the debt-to-income calculator to test the payment against other obligations, and use the budget calculator to leave room for taxes, insurance, maintenance, and emergency expenses.

Formula

Monthly rate:

monthly rate=annual interest rate12\text{monthly rate} = \frac{\text{annual interest rate}}{\text{12}}

Available credit:

available credit=credit limit−current balance\text{available credit} = \text{credit limit} - \text{current balance}

Draw-period interest-only payment:

draw-period payment=current balance×monthly rate\text{draw-period payment} = \text{current balance} \times \text{monthly rate}

Repayment months:

repayment months=repayment years×12\text{repayment months} = \text{repayment years} \times \text{12}

Repayment-period amortized payment:

repayment payment=balance×monthly rate×(1+monthly rate)repayment months(1+monthly rate)repayment months−1\text{repayment payment} = \frac{\text{balance} \times \text{monthly rate} \times (1 + \text{monthly rate})^{\text{repayment months}}}{(1 + \text{monthly rate})^{\text{repayment months}} - 1}

If the rate is zero, the repayment payment is the balance divided by the number of repayment months.

Worked example matching the default inputs

The default line has a $100,000 credit limit, a $50,000 current balance, a 7.5% annual interest rate, a 10-year draw period, and a 20-year repayment period. The monthly rate is 7.5% divided by 12, or 0.625%.

The draw-period payment is interest only:

draw-period payment=50,000 dollars×0.625%=312.50 dollars\text{draw-period payment} = \text{50,000 dollars} \times \text{0.625\%} = \text{312.50 dollars}

Available credit is $50,000 because the $100,000 limit minus the $50,000 balance leaves $50,000 undrawn. For repayment, 20 years equals 240 months. Using the amortization formula on the $50,000 balance at the same rate gives a repayment payment of $402.80 per month. Scheduled repayment payments total $96,671.18, and total interest during repayment is $46,671.18 if the rate and balance stay unchanged.

Draw period versus repayment period

The draw period can feel inexpensive because the required payment may cover only interest. That does not mean the debt is shrinking. If you pay $312.50 and continue to owe $50,000, the eventual repayment period can bring a payment shock. A larger payment, a shorter repayment period, or a higher variable rate can all raise the monthly amount. Borrowers who use HELOCs for renovations, education, debt consolidation, or emergency liquidity should plan when principal repayment will begin, not just whether the current interest-only payment fits.

Costs and eligibility

HELOC approval may depend on credit, income, combined loan-to-value, property type, occupancy, existing mortgage balance, and lender limits. Some lines have annual fees, early closure fees, minimum draw rules, appraisal charges, or rate margins tied to an index. The CFPB explains that a HELOC is secured by the home, so failure to repay can put the property at risk. Compare that risk with a loan calculator for unsecured borrowing and with a mortgage calculator if you are deciding between a line and replacing the first mortgage.

Tips

  • Run a higher-rate scenario before relying on the payment.
  • Make principal payments during the draw period if your budget allows.
  • Track future draws separately; this calculator uses the current balance only.
  • Compare fees and margins, not just introductory rates.
  • Keep unused credit for true needs rather than treating the limit as cash.

Informational note

This calculator is educational and assumes a constant rate, no new draws, and a standard repayment period. It does not model every HELOC contract feature, such as rate caps, minimum-payment floors, balloon payments, or promotional periods. Read the lender’s agreement and disclosures before pledging home equity.

Sources

Frequently asked questions

What payment does this HELOC calculator show first?
The primary result is the repayment-period monthly payment, which amortizes the current balance over the repayment term. The details also show the draw-period interest-only payment, total interest, total payment, available credit, and the draw period entered for context.
How is the draw-period payment calculated?
The calculator multiplies the current balance by the monthly interest rate. That models an interest-only draw period, so the balance does not decline unless you voluntarily pay extra principal, stop drawing new funds, or make larger payments than required.
How is the repayment-period payment calculated?
The repayment payment uses the standard amortization formula on the current balance, interest rate, and repayment period. It assumes no new draws, no rate changes, and equal monthly payments until the balance is repaid over the entered term in full.
Why must the balance be below the credit limit?
A HELOC is a line of credit with a maximum approved limit. The calculator treats a balance above that limit as invalid because available credit would be negative and the scenario would not match the line's stated borrowing cap.

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