Calculate interest-only payments during the draw period and principal + interest payments during the repayment period for a Home Equity Line of Credit. Includes maximum borrowable amount estimator.
HELOC rates are usually variable
Extra payments applied only during the repayment period to pay down principal faster.
| Period | Phase | Payment | Interest | Principal | Ending Balance |
|---|---|---|---|---|---|
| Click Calculate HELOC to generate schedule | |||||
Draw period shows interest-only payments. Repayment period shows full principal + interest amortization.
A HELOC is a revolving line of credit secured by your home equity. This calculator models the two distinct phases: the interest-only Draw Period and the principal-repaying Repayment Period.
| Input | Definition | Typical Range |
|---|---|---|
| Initial Draw / Credit Limit Used | Amount you plan to borrow initially (can be less than full approved limit) | $50k – $250k |
| Interest Rate | Current HELOC rate (usually variable = Prime + Margin) | 7.5% – 11% |
| Draw Period | Years you can draw money (interest-only payments) | 5 – 10 years |
| Repayment Period | Years to repay the balance after draw period ends | 10 – 20 years |
| Closing Costs | Upfront fees (appraisal, title, origination). Can be financed. | $2k – $6k |
| Extra Monthly Payment | Additional principal payments during repayment phase only | $100 – $500 |
No principal is paid. Balance remains nearly constant unless you make extra payments.
Variable Interest Rate: Most HELOCs have variable rates. This calculator uses a fixed rate assumption for planning purposes. In reality, your payment can change with market rates.
Interest-Only Risk: During the draw period you are not building equity. Many people are surprised by the large payment jump when repayment begins.
HELOC vs Home Equity Loan: HELOC offers flexibility but payment uncertainty. A Home Equity Loan offers fixed payments and rate but requires taking the full amount upfront.