A HELOC payment calculator shows your monthly payments during the draw period (interest-only) and the repayment period (fully amortizing principal and interest). HELOCs have two distinct payment phases — this tool helps you plan for both and compare payments at different draw amounts.
HELOC Details
Variable rate — plan for potential increases
Draw Period Payments
Repayment Period Payments
Total Cost Summary
Payment Comparison at Different Draw Amounts
How monthly payments change depending on how much of your credit line you use:
| Draw Amount | Draw Period (interest-only) | Repayment Period (P+I) | Total Interest |
|---|
How to Use the HELOC Payment Calculator
This HELOC payment calculator shows your monthly payments in both phases of a home equity line of credit: the draw period (interest-only minimum payments) and the repayment period (fully amortizing principal + interest). Understanding both phases is critical for budgeting.
Draw Period: Low Payments, Growing Risk
During the draw period, you can borrow, repay, and re-borrow up to your credit limit. Minimum payments are interest-only — for a $50,000 balance at 8.5%, that's about $354/month. This feels affordable, but the entire balance remains when the draw period ends. Many borrowers are surprised by the payment jump at repayment start.
Repayment Period: The Payment Shock
When the draw period ends, you can no longer borrow, and payments convert to fully amortizing (principal + interest). A $50,000 balance at 8.5% in a 20-year repayment requires $434/month — a $80/month increase. The shorter the repayment period, the higher the payment: a 10-year repayment of the same balance would be $619/month. Use this calculator to model which repayment period fits your budget.
Variable Rate Risk Planning
Most HELOCs are variable rate, tied to the prime rate. If the Federal Reserve raises rates 2% over the next few years, your interest rate — and monthly payment — would increase proportionally. Run this calculator at your current rate AND at a hypothetical "stress test" rate (current + 2%) to ensure you can afford worst-case payments.
HELOC vs Cash-Out Refinance
A HELOC offers flexibility — borrow what you need, when you need it. A cash-out refinance gives you a lump sum with a fixed rate and single monthly payment. If rates have risen since you got your mortgage, a cash-out refi replaces your first mortgage at a higher rate on the full balance — often making a HELOC more cost-effective for borrowing additional funds.
FAQ
What is a HELOC draw period?
The draw period is the time (typically 5-10 years) when you can borrow from your HELOC line. During this phase, you only pay interest on the outstanding balance — you don't have to pay down principal. This results in lower monthly payments but means the full balance is still owed when the repayment period starts.
What is a HELOC repayment period?
After the draw period ends, you enter the repayment period (typically 10-20 years) during which you can no longer borrow and must pay down the full remaining balance. Payments jump significantly because you're now paying both principal and interest. A $50,000 HELOC balance at 8% interest-only = $333/month. In a 20-year repayment: $418/month.
Are HELOC interest rates variable?
Yes — HELOCs typically have variable interest rates tied to the prime rate plus a margin. When the Federal Reserve raises rates, your HELOC rate and payment increase. Some lenders offer rate locks on portions of your balance. This calculator uses a fixed rate for estimates; factor in potential rate increases for worst-case planning.
How is HELOC interest calculated?
HELOC interest is calculated daily on the outstanding balance: (Annual Rate / 365) × Days × Balance. During the draw period, you're only charged interest on the amount you've drawn, not the full credit line. If you have a $100,000 HELOC but only draw $30,000, you pay interest on $30,000.
Can I pay down principal during the HELOC draw period?
Yes, and it's smart to do so. Making extra principal payments during the draw period reduces your balance and future interest costs. However, minimum payments are interest-only during the draw period. This calculator shows interest-only minimum payments during draw.
Is this HELOC calculator free?
Yes, completely free with no signup required. All calculations run in your browser. For actual HELOC rates, compare offers from your current mortgage lender, local credit unions, and national banks — rates and fees vary significantly.