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HELOC Calculator

Estimate HELOC payments during the draw and repayment periods, total interest, APR after closing costs and annual fees, and how much home equity you may be able to borrow.

Interest-only during the draw period, then principal and interest. Optionally include closing costs and an annual fee.

ExampleSample values — edit any field to see your result.

$

The credit limit you expect to draw. Payments assume the line is fully drawn and stays drawn through the draw period.

%

Typical HELOC rates are variable (index + margin). This calculator uses a constant rate so you can compare offers.

years

Years you can draw, repay, and redraw up to the limit. Most lenders require interest-only payments in this phase.

years

After the draw period the line closes to new draws and payments include principal and interest, like a regular loan.

Results update as you type.

Draw Period Monthly Pay

$333.33

Estimated result

Repayment Period Monthly Pay
$477.83
Total of Payments
$106,008.69
Total Interest
$56,008.69

Loan vs interest

Loan amount 47%, Interest 53%
  • Loan amount47%
  • Interest53%

Amortization schedule

PeriodInterestPrincipalEnding Balance
Year 1$4,000.00$0.00$50,000.00
Year 2$4,000.00$0.00$50,000.00
Year 3$4,000.00$0.00$50,000.00
Year 4$4,000.00$0.00$50,000.00
Year 5$4,000.00$0.00$50,000.00
Year 6$3,934.99$1,798.92$48,201.08
Year 7$3,785.68$1,948.23$46,252.84
Year 8$3,623.98$2,109.94$44,142.91
Year 9$3,448.85$2,285.06$41,857.85
Year 10$3,259.19$2,474.72$39,383.13
Year 11$3,053.79$2,680.12$36,703.01
Year 12$2,831.35$2,902.57$33,800.44
Year 13$2,590.43$3,143.48$30,656.97
Year 14$2,329.53$3,404.39$27,252.58
Year 15$2,046.96$3,686.95$23,565.63
Year 16$1,740.95$3,992.96$19,572.67
Year 17$1,409.54$4,324.38$15,248.29
Year 18$1,050.61$4,683.30$10,564.99
Year 19$661.90$5,072.01$5,492.98
Year 20$240.93$5,492.98$0.00
Draw Period Monthly Pay$333.33

Estimate the cost of a home equity line of credit. Enter the amount you expect to draw, the rate, and the draw and repayment years for interest-only then amortizing payments, total interest, and a year-by-year schedule. Open Closing costs and fees to fold in origination and an annual fee — the calculator then reports cash received, total cost, and APR. The How much tab sizes the line from your home's value, remaining mortgage, and lender LTV.

Formula

Draw-period pay is interest only. For principal P and annual rate R:

draw pay = P × (R / 1200)

Repayment pay amortizes the same principal over n repayment months at monthly rate i = R / 1200:

repay pay = P × i / (1 − (1 + i)^(−n))

Total of payments is draw pay × draw months plus repay pay × repayment months. Total interest is that sum minus P.

When fees are on, cost of loan is total interest + closing + (annual fee × draw years). APR is the rate that makes the repayment payment equal the payment on net proceeds loan − closing − PV(annual fees), where annual fees are a monthly annuity over the draw period discounted at the note rate.

The line you may qualify for is:

max HELOC = round(home value × LTV − mortgage balance)

A HELOC's payment often jumps when the draw period ends. Use the repayment figure — not the interest-only amount — when you budget.

Default example ($50,000 at 8%)

ResultAmount
Draw period monthly pay$333.33
Repayment period monthly pay$477.83
Total of 240 payments$106,008.69
Total interest$56,008.69

With $2,000 closing (paid upfront) and a $50 annual fee, cost of loan is $58,258.69 and APR is 8.755%. Deducting the same closing from the loan shows $48,000 cash received; payments and APR stay the same.

Examples

Interest-only then amortizing

A $50,000 HELOC at 8% with a 5-year draw and 15-year repayment. Draw pay is $50,000 × 0.08 / 12 = $333.33. The repayment payment on $50,000 over 180 months is $477.83. Five years of interest-only plus 15 years of that payment totals $106,008.69, of which $56,008.69 is interest.

How much can I borrow?

A home worth $600,000 with $250,000 still owed on the first mortgage, at a lender cap of 80% combined LTV: $600,000 × 80% − $250,000 = $230,000. If the remaining mortgage already uses 80% or more of the home's value, a HELOC usually will not be approved on equity alone.

Frequently asked questions

How is a HELOC payment calculated?
During the draw period you typically pay interest only: monthly pay is the outstanding balance times the annual rate divided by 12. After the draw period the line converts to a fully amortizing loan, and the payment is the standard P × i ÷ (1 − (1 + i)^−n) formula on the same principal over the repayment months. This calculator assumes the line is fully drawn and stays drawn.
What is the difference between the draw period and the repayment period?
The draw period (often 5–10 years) is when you can withdraw, repay, and redraw up to the credit limit, usually with interest-only payments. When it ends, the HELOC closes to new draws and you repay principal plus interest over the remaining term (often 10–20 years). The monthly payment usually jumps at that switch.
Why is HELOC APR higher than the interest rate?
The note rate prices only the balance. APR is the internal rate of return of the repayment-period payment against what you actually receive after closing costs, plus the present value of draw-period annual fees. A $2,000 closing cost and $50 annual fee on a $50,000 line at 8% raises APR to about 8.755%. Rank offers by APR, not the advertised rate.
How much HELOC can I borrow?
Most lenders cap combined loan-to-value at 80–85% of the home's value. A $600,000 house with a $250,000 first mortgage at 80% LTV supports about $230,000 ($600,000 × 80% − $250,000). Credit score (often 630+), debt-to-income (often under 43%), and a typical $1 million line cap can still reduce that number.
How does a HELOC differ from a home equity loan or cash-out refinance?
A HELOC is a revolving line: you draw what you need. A home equity loan (second mortgage) is a lump sum with a fixed payment. A cash-out refinance replaces your first mortgage with a larger loan and pays you the difference. HELOC rates are usually variable; home equity loans and many cash-out refinances are fixed.
Are HELOC interest payments tax-deductible?
Not always. Interest on a HELOC or home equity loan used to buy, build, or substantially improve the home that secures it may be deductible if you itemize; using the line for other spending often is not. Tax rules change — check current IRS guidance or a tax professional.

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