HELOC Calculator
Estimate your HELOC payments during both the draw period and repayment period. See how variable rate changes could affect your monthly payments and total interest costs over the life of the line of credit.
HELOC Calculator Inputs
Enter HELOC Details
Your HELOC Payment Results
- Draw Period Payment
-
$354.17
/mo
Interest only
- Repayment Period Payment
-
$433.91
/mo
Principal & interest
- Balance at Repayment
- $50,000.00
- Draw Period Interest
- $42,500.40
- Repayment Interest
- $54,138.40
- Total Interest Cost
- $96,638.80
- Total Cost
- $146,638.80
- Total HELOC Term
- 30 years
Variable Rate Scenarios
| Rate Scenario | Interest Rate | Draw Payment | Repayment Payment | Total Interest |
|---|---|---|---|---|
| Current | 8.5% | $354.17 | $433.91 | $96,638.80 |
| +1% | 9.5% | $395.83 | $466.07 | $104,357.20 |
| +2% | 10.5% | $437.50 | $499.19 | $112,306.00 |
| +3% | 11.5% | $479.17 | $533.21 | $120,470.80 |
How a HELOC Works
A Home Equity Line of Credit (HELOC) is a revolving credit line secured by the equity in your home. Unlike a home equity loan that gives you a lump sum, a HELOC lets you borrow and repay as needed during the draw period, similar to a credit card.
Draw Period (10 years)
During the draw period, you can borrow up to your credit limit. Most lenders require interest-only minimum payments on the outstanding balance. You can pay more than the minimum to reduce your balance. Your initial draw of $50,000 results in a payment of $354.17/mo.
Repayment Period (20 years)
When the draw period ends, you enter the repayment phase. You can no longer borrow, and your balance is repaid through fully amortizing P&I payments. On a balance of $50,000, your repayment payment would be $433.91/mo.
Understanding Payment Shock
One of the biggest risks with a HELOC is payment shock — the significant increase in monthly payments when you transition from interest-only draw period payments to fully amortizing repayment payments. In this example, payments could jump from $354.17/mo (interest-only at end of draw) to $433.91/mo (P&I during repayment).
To mitigate payment shock, consider making principal payments during the draw period, refinancing before the repayment period begins, or choosing a HELOC with a longer repayment term.
Variable Rate Risk
Most HELOCs have variable interest rates tied to the prime rate. When the Federal Reserve raises interest rates, your HELOC rate — and your monthly payment — increases. The rate scenario table above shows how a 1-3 percentage point increase would affect your payments. HELOC rates typically have a lifetime cap (often 18%) and may have periodic caps limiting how much the rate can change at once.
Frequently Asked Questions
What is the difference between a HELOC and a home equity loan?
A HELOC is a revolving line of credit — you draw funds as needed and pay interest only on the outstanding balance. A home equity loan gives you a lump sum upfront with fixed monthly payments. HELOCs typically have variable rates; home equity loans are usually fixed-rate.
Can I pay off my HELOC early?
Yes, most HELOCs allow early repayment without penalty. Making extra principal payments during the draw period reduces your balance and lowers future interest charges. Some lenders may charge an early closure fee if you close the HELOC within the first 2-3 years.
What credit score do I need for a HELOC?
Most lenders require a minimum credit score of 680 for a HELOC, though some may go as low as 620 with higher rates and lower limits. A score of 740+ typically gets you the best rates. Lenders also consider your debt-to-income ratio, employment history, and available equity.
Can my HELOC be frozen or reduced?
Yes. Lenders can freeze or reduce your HELOC if your home value drops significantly, your financial situation changes, or economic conditions deteriorate. This happened widely during the 2008 financial crisis. You would still be required to repay any outstanding balance even if your line is frozen.
How accurate is this HELOC calculator?
This calculator provides estimates based on the values you enter. Actual HELOC terms vary by lender and may include annual fees, minimum draw requirements, or rate floors. The interest-only draw period payment is calculated on your outstanding balance, and the repayment payment uses standard amortization. Always review your specific HELOC terms with your lender.