HELOC Calculator

Calculate interest-only draw period payments and amortizing repayment phase payments for a Home Equity Line of Credit (HELOC).

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Calculator Inputs

Credit Line Limit

The maximum credit limit approved for your line of credit.

Initial Draw Amount

The amount you plan to withdraw or borrow from your credit line.

Interest Rate (APR)

The current nominal annual percentage rate. HELOC rates are typically variable; this calculator projects payments at the entered rate.

Draw Period

The duration of the draw period, during which payments are interest-only.

Repayment Period

The duration of the repayment period to pay down principal and interest.

Draw Period Payment (Interest-Only): $333.33
Repayment Period Payment (Principal & Interest): $418.22
Total Draw Interest: $39,999.60
Total Repayment Interest: $50,372.97
Total Lifetime Interest: $90,372.57
Total Lifetime Payments: $140,372.57

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How It's Calculated

Formula

\text{Draw Payment} = B \times \frac{r}{12} \qquad \text{Repayment Payment} = \frac{B \times \frac{r}{12} \left(1 + \frac{r}{12}\right)^n}{\left(1 + \frac{r}{12}\right)^n - 1}

A Home Equity Line of Credit (HELOC) is a revolving line of credit secured by your home's equity. Unlike a fixed-rate Home Equity Loan that disburses a lump sum with immediate amortization, a HELOC typically consists of two distinct phases: a draw period (often 5–10 years) where you can borrow as needed and make interest-only payments, followed by a repayment period (often 10–20 years) where the line closes to new draws and the remaining balance fully amortizes over fixed monthly payments.

Worked Examples

$100,000 line limit, $50,000 initial draw, 8% APR, 10-year draw, 20-year repayment

Draw monthly rate: 8% / 12 = 0.6667%
Draw period monthly payment (interest-only): $50,000 × (0.08 / 12) = $333.33
Total draw period interest: $333.33 × 120 months = $39,999.60
Repayment period monthly payment (240 months fully amortized): $418.22
Total repayment phase interest: $50,372.97
Total interest across both phases: $90,372.57; Total repaid: $140,372.57

$80,000 line limit, $30,000 draw, 7% APR, 5-year draw, 15-year repayment

Draw monthly payment (interest-only): $30,000 × (0.07 / 12) = $175.00
Total draw period interest: $175.00 × 60 months = $10,500.00
Repayment phase monthly payment (180 months amortized at 7%): $269.65
Total repayment phase interest: $18,536.63
Total interest: $29,036.63; Total repaid: $59,036.63

Frequently Asked Questions

How is a HELOC different from a Home Equity Loan?

A Home Equity Loan provides a fixed lump sum with fixed monthly amortizing payments from day one. A HELOC is a revolving line of credit that separates borrowing into an interest-only draw period followed by an amortizing repayment period.

Does this calculator account for variable interest rate fluctuations?

No. Most HELOCs feature variable interest rates tied to an index (such as the US Prime Rate). This calculator projects payments assuming the entered interest rate remains constant across both phases. Actual future payments will adjust as benchmark rates change. This tool is for estimation and educational purposes, not a guaranteed lender quote.

What happens when the draw period ends?

When the draw period expires, you can no longer withdraw funds. The outstanding drawn balance converts into the repayment phase, requiring monthly principal and interest payments that amortize the remaining debt to zero over the repayment term.

Can I pay down principal during the draw period?

Yes. Although minimum payments in the draw period are interest-only, most lenders allow extra principal payments without penalty, which reduces your outstanding balance and decreases subsequent monthly interest charges.