Use this free HELOC calculator to estimate your monthly payment during both the draw period and the repayment period. Enter your loan amount, interest rate, and loan term to see what your home equity line of credit could cost each month.
A HELOC lets you borrow against the equity in your home, similar to a credit card with a revolving line of credit. Payments shift depending on how much you draw and whether you're in the interest-only phase or paying principal and interest. This calculator estimates both so you can plan ahead.
HELOC Payment Calculator
The HELOC payment calculator above asks for a few key inputs:
- Line of credit amount: The total you plan to borrow or have available.
- Interest rate: The annual percentage rate on your HELOC. Most HELOCs have variable rates tied to the prime rate.
- Draw period length: Typically 5 to 10 years. During this time, you can borrow and often pay interest only.
- Repayment period length: Usually 10 to 20 years after the draw period ends. You repay principal and interest in fixed monthly payments.
- Amount drawn: How much of your credit limit you actually use.
Enter these numbers and the calculator returns an estimated monthly payment for each phase of the loan term. Adjust the inputs to compare different borrowing scenarios.
How the HELOC Calculator Works
The calculator uses standard amortization math to estimate your HELOC payments. During the draw period, it calculates interest-only payments based on your outstanding balance and interest rate. During the repayment period, it calculates principal and interest payments that fully pay off the loan balance by the end of the loan term.
Here's the basic formula for interest-only payments during the draw period:
Monthly payment = (Loan balance × Annual interest rate) ÷ 12
For the repayment period, the calculator uses a standard amortization formula that spreads the remaining balance across equal monthly installments of principal and interest. This is the same math used for a traditional mortgage or installment loan.
Keep in mind that calculator results are estimates. Your actual required payment depends on your lender's terms, any rate changes, and your outstanding balance at the time the draw period ends.
Home Equity Line of Credit Borrowing and Interest Rate
Your interest rate is the single biggest factor in what your HELOC costs each month. Even a small rate difference compounds over years of borrowing.
Most lenders set your rate based on the prime rate plus a margin. If the prime rate is 8.50% and your margin is 0.50%, your rate would be 9.00%. That margin depends on your credit score, loan-to-value ratio, and the lender's pricing.
How much can you borrow? Lenders typically allow you to borrow up to 80% to 85% of your home's value, minus your current mortgage balance. A home worth $400,000 with a $250,000 mortgage balance might qualify for a credit line of up to $70,000 at 80% LTV.
Variable Rate vs Fixed Rate During the Draw Period
HELOCs have variable rates by default. Your rate moves when the prime rate changes. This means your monthly payment can increase or decrease with no warning.
Some lenders let you convert all or part of your balance to a fixed rate. This is sometimes called a fixed-rate option or rate lock. You give up the flexibility of variable pricing in exchange for predictable payments on that portion of the balance.
Can you fix the interest rate on your entire HELOC? It depends on the lender. Some allow multiple fixed-rate locks on different portions of your balance. Others only offer the variable rate. Ask your lender before you apply.
When comparing offers, look at the annual percentage rate, not just the introductory rate. Introductory rates expire, and the standard variable rate may be significantly higher.
Repayment Period and Loan Term
The full loan term for a HELOC includes two phases: the draw period and the repayment period.
- Draw period: Usually 5 to 10 years. You can borrow, repay, and borrow again up to your credit limit. Most lenders require interest-only minimum payments.
- Repayment period: Usually 10 to 20 years. You can no longer draw funds. Your balance is repaid in monthly installments of principal and interest.
A common HELOC structure is a 10-year draw period followed by a 20-year repayment period, making a 30-year total loan term. A shorter repayment period means higher monthly payments but less total interest paid.
When the draw period ends, your payment can jump significantly. If you were paying interest only on a $50,000 balance at 9%, your monthly payment was about $375. Once principal is added over a 20-year repayment period, that payment rises to roughly $450. On a 10-year repayment schedule, it jumps to about $633.
Plan for the repayment period payment, not just the draw period minimum.
Estimated Payment for HELOC Payments
The calculator gives you two estimated payment figures. Both matter for your budget.
Monthly Payment During the Draw Period
During the draw period, most lenders require only an interest-only minimum payment. This keeps your monthly cost low but does not reduce your principal balance.
Here are sample estimated monthly payments during the draw period (interest only):
| Amount Drawn | 7% Rate | 9% Rate | 11% Rate |
|---|---|---|---|
| $25,000 | $146 | $188 | $229 |
| $50,000 | $292 | $375 | $458 |
| $100,000 | $583 | $750 | $917 |
| $150,000 | $875 | $1,125 | $1,375 |
These are estimates. Your actual payment depends on your exact rate and how much of your credit line you use. Since a HELOC is a revolving line of credit, your balance (and payment) changes as you borrow and repay.
How much does a $50,000 HELOC cost per month? At 9% interest during the draw period, about $375 in interest only. At 7%, about $292. Your rate determines the answer.
What is the monthly payment on a $100,000 HELOC? At 9%, expect roughly $750 per month in interest-only payments during the draw period. That jumps to around $900 to $1,000 once you enter the repayment period, depending on the repayment term length.
Loan Payment During Repayment
Once the draw period ends, you repay the loan balance in installments that include both principal and interest. This payment is higher than the interest-only draw period payment.
Sample estimated monthly payments during a 20-year repayment period:
| Loan Balance | 7% Rate | 9% Rate | 11% Rate |
|---|---|---|---|
| $25,000 | $194 | $225 | $258 |
| $50,000 | $388 | $450 | $516 |
| $100,000 | $775 | $900 | $1,032 |
| $150,000 | $1,163 | $1,349 | $1,548 |
A shorter repayment period increases the monthly payment but reduces total interest. A 10-year repayment on $100,000 at 9% costs about $1,267 per month compared to $900 over 20 years. But you pay roughly $52,000 in total interest over 10 years versus $116,000 over 20 years.
Use the calculator to compare different repayment scenarios and find a payment amount that fits your budget.
Loan-to-Value Ratio and Home Equity Calculator
Your loan-to-value ratio (LTV) determines how much you can borrow. It's the total of all loans secured by your home divided by your home's current market value.
LTV = (Current mortgage balance + HELOC amount) ÷ Home's value × 100
Most lenders cap the combined LTV at 80% to 85%. Some go up to 90%, but expect a higher interest rate.
How Loan-to-Value Affects Borrowing
A lower LTV means more available equity and better loan terms. Here's how it works in practice:
- Home worth $500,000 with a $300,000 mortgage = 60% LTV on the first mortgage alone.
- At an 80% maximum loan-to-value, total borrowing can reach $400,000.
- Subtract the $300,000 mortgage balance and you have $100,000 in available equity for a HELOC.
If your LTV is already near the maximum, you may qualify for a smaller credit line or none at all.
Lenders also use LTV to set your interest rate. A borrower at 60% combined LTV typically gets a lower rate than one at 80%. Less risk for the lender means better pricing for you.
Mortgage Balance and Available Equity
Your current mortgage balance is the starting point for every HELOC calculation. You need to know two numbers:
- Your home's current market value. Use a recent appraisal or a conservative estimate. Lenders will order their own appraisal during the application process.
- Your outstanding mortgage balance. Check your latest mortgage statement or call your loan servicer.
Subtract the mortgage balance from your home's value to find your equity. Then multiply your home's value by the lender's maximum LTV to find the upper borrowing limit.
Example:
- Home value: $350,000
- Mortgage balance: $200,000
- Equity in your home: $150,000
- Maximum combined LTV (80%): $280,000
- Maximum HELOC: $280,000 minus $200,000 = $80,000
You have $150,000 in equity, but the lender's LTV cap limits your HELOC to $80,000. Your available equity and the lender's LTV policy together determine your credit limit.
Home Equity Loan or HELOC
These two products both use your home as collateral, but they work differently. Choosing the right one depends on how you plan to use the money.
A HELOC is a revolving line of credit. You draw what you need, when you need it, up to your credit limit. You pay interest only on what you borrow. It works similar to a credit card, but it's secured by your home.
A home equity loan is a one-time installment loan. You receive a lump sum and repay it in fixed monthly payments over a set term. The interest rate is usually fixed from day one.
How Home Equity Loan Payment Differs From HELOCs
The key difference is payment structure:
- Home equity loan: Fixed monthly payments of principal and interest from the start. Your payment never changes. A $50,000 home equity loan at 8% over 15 years costs about $478 per month, every month.
- HELOC: Interest-only payments during the draw period, then principal and interest during repayment. Payments vary as your balance and rate change.
A fixed-rate home equity loan gives you certainty. A HELOC gives you flexibility. The tradeoff is straightforward.
Home equity loan monthly payments are also easier to budget for since they stay the same for the life of the loan. HELOC payments can shift with variable interest rates and changing balances.
When Equity Loans Make More Sense
Choose a home equity loan when:
- You need a specific amount all at once (home remodeling, debt consolidation, a major purchase).
- You prefer fixed monthly payments and a locked interest rate.
- You want a clear payoff date with no payment surprises.
Choose a HELOC when:
- You need ongoing access to funds over time.
- You're not sure exactly how much you'll need.
- You want to pay interest only on what you actually use.
- You're comfortable with variable interest rates or plan to use a fixed-rate lock option.
Is a HELOC a trap? It can be if you treat it like free money. Because you only pay interest during the draw period, it's easy to carry a large balance without realizing the true cost. The payment increase when repayment starts can be a shock. Borrow with a repayment plan in mind.
HELOC Payment Calculator Estimated Payment Limitations
This calculator provides estimates for planning purposes only. It is not a loan offer, rate quote, or guarantee of any terms.
Important limitations to keep in mind:
- Variable rates change. The calculator uses a single interest rate. In reality, HELOCs have variable rates that move with the prime rate. Your actual payments will fluctuate.
- Fees are not included. Many HELOCs come with closing costs, annual fees, or early termination fees. These affect your total cost but are not reflected in the estimated payment.
- Lender terms vary. Draw periods, repayment periods, minimum payment requirements, and maximum LTV ratios differ by lender. Your actual loan terms may not match the calculator inputs.
- Tax implications are not covered. Interest on a HELOC may be tax-deductible if the funds are used for home improvements. Consult a tax professional for guidance specific to your situation.
- Subject to credit approval. Whether you qualify for a HELOC, and at what rate, depends on your credit score, income, debt-to-income ratio, and the lender's underwriting criteria.
Use calculator estimates as a starting point for comparison and budgeting. Talk to a lender for actual rates, terms, and payment amounts.
Home Equity Line of Credit and Credit Score
Your credit score plays a major role in whether you qualify for a HELOC and what interest rate you receive.
Most lenders look for a minimum credit score in the mid-600s, though requirements vary. Here's a general breakdown:
- 740+: Best rates and terms. You'll likely qualify for the lowest margin above prime.
- 700 to 739: Competitive rates. Most lenders will approve you without difficulty.
- 660 to 699: You may qualify, but expect a higher interest rate and possibly a lower credit limit.
- Below 660: Approval is harder. Some lenders won't offer HELOCs at this range. Those that do will charge significantly higher interest.
Beyond the credit score number, lenders also review your credit history for late payments, high utilization, and recent inquiries. A strong history of on-time payments improves your chances.
To qualify for a HELOC, lenders also evaluate your debt-to-income ratio, employment stability, and the equity in your home. A strong credit score alone isn't enough if your other financials don't support the borrowing.
If your score needs work, even a few months of paying down balances and avoiding new credit applications can make a difference in the rate you're offered.
HELOC Calculator and Refinancing Options
If you already have a HELOC, refinancing it could lower your rate or change your repayment terms. There are a few paths to consider.
Refinance into a new HELOC. You replace your existing HELOC with a new one, potentially at a lower interest rate or with a fresh draw period. This resets the clock, giving you more time before repayment kicks in.
Refinance into a home equity loan. Convert your variable-rate HELOC balance into a fixed-rate home equity loan. You lose the revolving credit line but gain predictable fixed monthly payments and a locked rate.
Cash-out refinance. Replace your first mortgage and HELOC with a single new mortgage at a (potentially) lower rate. This simplifies your payments into one loan. However, closing costs on a full mortgage refinance are higher than on a HELOC, and you may extend your mortgage term.
Which option is better: a cash-out refinance or a HELOC? It depends on current mortgage rates versus HELOC rates, how much you owe, and how long you plan to stay in the home. If mortgage rates are lower than your HELOC rate, a cash-out refinance may save money. If mortgage rates are higher, keeping the HELOC (or refinancing it into a new one) is usually the better move.
Use the calculator to estimate payments under different scenarios. Compare a new HELOC payment, a home equity loan payment, and a refinanced mortgage payment side by side. Then talk to a lender to get actual quotes based on your specific situation.