Finance · free · no sign-up
HELOC Calculator
Estimate payments on a home equity line of credit (HELOC), which has an interest-only draw period followed by a repayment period.
A home equity line of credit (HELOC) works in two acts: a draw period, when you borrow and usually pay interest only, and a repayment period, when the balance must actually be paid down. This calculator shows the payment in both phases, which is where the surprise usually hides.
How to use this calculator
- Enter the amount you have drawn (or plan to draw).
- Add the interest rate and the length of each period.
- Press calculate to see the interest-only payment and the later repayment amount.
Plan for the second act
Interest-only payments feel cheap, then the repayment period compresses the same balance into fewer years and the payment jumps. Before drawing, check the repayment-phase figure against your budget; that, not the draw payment, is the commitment you are really making.
Frequently asked questions
How much can I borrow on a HELOC?
Lenders commonly cap total borrowing against the home (mortgage plus HELOC) at about 80 to 85% of its value, minus your existing mortgage balance.
Are HELOC rates fixed?
Usually variable, tied to a benchmark rate, so payments move when rates move. Some lenders offer fixed-rate portions; read the terms.
What happens if I only pay interest for years?
The balance stays the same, so you pay more total interest and face a larger repayment later. Paying some principal during the draw period softens the jump.