HELOC Calculator — Home Equity Line of Credit Payments
Estimate your HELOC payments for both the interest-only draw period and the fully amortising repayment period. Enter the amount drawn, the current APR, and the two period lengths.
$
%
years
years
Fully amortised principal + interest after the draw period ends
- 1
Monthly interest rate
8.5% ÷ 12 ÷ 100 = 0.007083 - 2
Repayment months
20 × 12 = 240 - 3
Growth factor (1+r)ⁿ
1.007083ⁿ (n = 240) = 5.4412Compound growth over the full repayment term. - 4
Monthly repayment payment
50,000 × 0.007083 × 5.4412 ÷ (5.4412 − 1) = 433.91
How does this calculator work?
During the HELOC draw period you pay interest only (Balance × APR/12). After it ends, the balance amortises over the repayment term: Payment = P × r / (1 − (1+r)^(−n)). Because no principal is paid down during the draw period, the repayment payment is often significantly higher — plan accordingly.
Formula
How this is calculated
A Home Equity Line of Credit (HELOC) works in two phases. During the draw period (typically 5–10 years) you can borrow up to your credit limit and most lenders require only interest payments on the amount drawn: Draw payment = Balance × (APR / 12). No principal is repaid in this phase, so the balance stays flat as long as you make minimum payments.
When the draw period closes, the HELOC enters the repayment period (typically 10–20 years). The outstanding balance is fully amortised over that term using the standard instalment formula: Payment = P × r / (1 − (1 + r)^(−n)), where r is the monthly rate and n is the number of months. Because the entire principal must now be repaid, this payment is usually significantly higher than the draw-period interest-only amount — a common source of payment shock.
HELOC rates are almost always variable (typically tied to the Prime Rate), so the APR field should reflect today's rate on your statement. The total interest shown assumes the rate stays constant — in practice rising rates will increase costs and falling rates will reduce them. Rates and terms here are editable estimates only; always verify against your specific loan agreement.
Frequently asked questions
A home equity loan provides a lump sum at a fixed rate repaid over a set term. A HELOC is a revolving credit line with a variable rate — you draw only what you need during the draw period, and repay it (usually at a higher payment) during the repayment period.
During the draw period you pay only interest; no principal is reduced. When the draw period ends the full balance must be amortised over the repayment term, so principal repayment is stacked on top of interest — causing the "payment shock" many borrowers experience.
Yes, and it is often wise to do so. Paying extra principal during the draw period reduces your balance and therefore both the interest cost and the repayment payment. This calculator shows the minimum-payment scenario; extra payments would shorten the repayment timeline.
Also known as
TG we-Calculate Editorial Team. (2026). HELOC Calculator — Home Equity Line of Credit Payments [Online calculator]. TG we-Calculate. https://we-calculate.com/calculator/heloc-calculator
TG we-Calculate Editorial Team. "HELOC Calculator — Home Equity Line of Credit Payments." TG we-Calculate. 2026. https://we-calculate.com/calculator/heloc-calculator.
TG we-Calculate Editorial Team, "HELOC Calculator — Home Equity Line of Credit Payments," TG we-Calculate, 2026. [Online]. Available: https://we-calculate.com/calculator/heloc-calculator
@misc{wecalculate_heloc_calculator, title = {HELOC Calculator — Home Equity Line of Credit Payments}, author = {{TG we-Calculate Editorial Team}}, howpublished = {\url{https://we-calculate.com/calculator/heloc-calculator}}, year = {2026}, note = {TG we-Calculate} }
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