HELOC Calculator
Calculate payments for a home equity line of credit (HELOC) during both the draw period (interest-only) and the repayment period (principal + interest).
How to use the HELOC Calculator
- Enter your inputs into the HELOC Calculator above.
- Results update instantly as you type — no submit button needed.
- Adjust any value to see how the result changes in real time.
The HELOC payment math
Draw period: Payment = Balance × monthly rate · · · Repayment period: Payment = standard amortization formula
Most HELOCs have a 10-year draw period with interest-only payments, followed by a 10–20 year repayment period that amortizes the balance. Rates are typically variable (prime + margin).
Worked example
$50,000 outstanding at 8.5% prime-based rate: draw-period payment $354/month (interest only). When the 20-year repayment phase starts at the same balance: payment jumps to $434/month and amortizes the loan.
Frequently asked questions
Why does my HELOC payment jump?
When the draw period ends, you transition from interest-only payments to amortizing payments. The increase can be 30–60%, and many borrowers are surprised by it.
Are HELOC rates fixed or variable?
Almost always variable, indexed to Prime Rate plus a margin (e.g., Prime + 1%). As the Fed moves rates, your HELOC rate moves with them.
Can I freeze my HELOC?
Banks can freeze or reduce HELOC limits if home value drops or your financial situation changes. This happened widely in 2008–2009 — don't rely on a HELOC as guaranteed emergency funds.