CalcArcade.

HELOC Calculator

Enter the amount you have drawn, the interest rate and the draw and repayment periods. You get the interest-only payment, the repayment payment and the total interest.

Your numbers

Result

Estimate for information only, not professional advice. Last reviewed .

How we calculate it

During the draw period you pay only the interest, balance × rate ÷ 12. When repayment starts, the balance is repaid with equal payments of principal and interest, P × r ÷ (1 − (1 + r)^−n), over the repayment period. The total interest is the interest-only payments plus the interest in the repayment payments.

For example, 50,000 at 8% with a 10 year draw period and 20 years of repayment costs 333.33 a month at first and 418.22 a month afterwards. The total interest is about 90,372.

Assumptions and limits

  • Most HELOCs have a variable rate, so the real payments will change. This calculator keeps the rate fixed.
  • It assumes the whole amount is drawn at the start and that you do not draw or repay any extra. Using more of the line or paying principal changes the result.
  • Fees, annual charges and rate caps are not included. Your agreement sets the real terms.

Frequently asked questions

What is the draw period of a HELOC?

It is the first part of the loan, often about 10 years, when you can borrow from the line and usually pay only interest. After it ends you repay the balance with principal and interest.

Why does my payment jump when repayment starts?

In the draw period you only pay interest. In the repayment period you also pay back the principal, so the payment is higher. Here it goes from 333.33 to 418.22 in the example.

Is a HELOC rate fixed?

Usually not. Most HELOCs follow a market rate, so the payment can rise or fall. Use the calculator with a few different rates to see the range.

Related calculators

Worked example (a fixed example using the starting numbers, it does not change as you type)

Inputs: Amount drawn = 50000; Interest rate (%) = 8; Draw period, interest only (years) = 10; Repayment period (years) = 20.

  • Payment in repayment period $418.22
  • Interest-only payment $333.33
  • Payment increase $84.89
  • Total interest $90,372.81
  • Total paid $140,372.81

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Last reviewed: . Formulas and assumptions are described on our methodology page. For information only; not professional advice.