HELOC Payment Calculator

A HELOC has two phases: an interest-only draw period when you can tap the line, then a fully amortizing repayment period. Estimate both monthly payments, total interest, and where your combined loan-to-value lands.

Your numbers

Home value

First mortgage balance

What you still owe on your primary loan

Amount drawn

How much of the line you actually use

HELOC rate

Illustrative example rate. HELOC rates are typically variable.

Interest-only draw period

yrs

Most HELOCs draw for 5 to 10 years

Repayment period

yrs

Common repay terms are 10 to 20 years

Lifetime rate cap (optional)

The highest rate your HELOC contract allows. Leave 0 to skip.

Monthly payments

Interest-only payment (first 10 yrs)$437

Repayment payment (next 20 yrs)$530

Your payment jumps when the draw period ends and principal starts amortizing. Plan for the higher payment before it hits.

If rates rise

HELOC rates are typically variable, tied to the Prime rate plus a margin. When Prime moves up, your rate moves with it. Here's what your payment looks like at higher rates.

Scenario	Rate	Interest-only	Repayment
Today's rate	8.75%	$437	$530
+1 pt	9.75%	$487	$569
+2 pt	10.75%	$538	$609
+3 pt	11.75%	$587	$650

Interest-only is what you'd pay during the draw period. Repayment is the fully amortizing payment over 20 years once principal kicks in.

Total cost

Amount drawn$60,000

Interest during draw period$52,500

Interest during repayment$67,254

Total interest over the life of the line$119,754

Total paid (principal + interest)$179,754

Assumes you keep the full balance drawn for the entire draw period and then pay down the line on schedule. Paying extra during the draw period lowers both numbers.

Equity position

Combined loan-to-value (CLTV)65.71%

Equity before this HELOC$240,000

Equity remaining after this HELOC$180,000

Most HELOC lenders cap CLTV around 80 to 90%. Going higher generally means a higher rate or a smaller line.

Results are estimates based on user inputs and do not represent loan terms, APR, or a financing offer. Pre-filled values are illustrative examples, not available or quoted rates. Actual terms depend on credit, property, program, and underwriting.

Not sure if a HELOC is the right tool?

A HELOC, fixed home equity loan, and cash-out refinance each have different trade-offs. Get a quick read on which one fits your situation.

Discuss Your Scenario

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Frequently asked questions

How is a HELOC payment calculated?

A HELOC has two phases. During the draw period (commonly 5 to 10 years) you typically pay interest-only on the balance you've drawn: balance times the monthly rate. When the draw period ends, the line converts to an amortizing payment, where principal and interest pay the balance to zero over the repayment term (commonly 10 to 20 years).

Why does my payment jump when the draw period ends?

Because you start paying down principal, not just interest. The same balance now amortizes over the repayment term, so the monthly payment can roughly double. Plan for that step-up before it hits.

Are HELOC rates fixed?

Usually no. Most HELOCs are variable-rate, tied to an index like the Prime Rate plus a margin. The rate (and your payment) can move up or down with the market. Some lenders offer a fixed-rate conversion option on a portion of the balance.

How much can I borrow on a HELOC?

Most lenders cap combined loan-to-value (CLTV) at 80 to 90% of your home value. Your line size is generally the cap, minus what you still owe on the first mortgage. Credit, income, and the property type also factor in.

Does this calculator use my actual HELOC rate?

No. You enter a sample rate. Real HELOC rates depend on your credit, CLTV, the lender's margin over Prime, and any introductory promo. Treat the output as a directional estimate.

Related glossary terms

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