HELOC Payment Calculator
Estimate your monthly payments for your Home Equity Line of Credit (HELOC), compare draw versus repayment period amounts, and explore your financial options with our free, professional HELOC calculator.
HELOC Payment Calculator
What is a HELOC (Home Equity Line of Credit)?
A HELOC is a revolving credit line secured by your home's equity. It allows you to borrow against the value of your home as you need, offering flexibility for major expenses like home improvements, debt consolidation, or unexpected costs. Unlike a fixed home equity loan, a HELOC works more like a credit card with a set maximum limit.
How HELOC Payments Work
HELOCs typically have two phases:
- Draw Period: For the initial phase (commonly 5–10 years), you can borrow as needed and pay only the interest on the outstanding balance (interest-only payments).
- Repayment Period: After the draw period, you can no longer borrow, and you must repay both the outstanding principal and interest, usually over 5–20 years, in fixed monthly payments.
How to Calculate HELOC Payments?
Interest-Only Payments during Draw Period:
Payments are calculated using the simple interest formula:
Draw Period Payment = (HELOC Amount) × (Annual Rate ÷ 100) ÷ 12
Principal + Interest Payments during Repayment Period:
Payments follow the standard amortizing loan formula:
Repayment Payment =
(Principal × Monthly Rate) / [1 - (1 + Monthly Rate)–N]
where:
Principal = Amount borrowed (assumes full balance used)
Monthly Rate = Annual Rate ÷ 12 ÷ 100
N = Total number of repayment months
HELOC Payment Calculator Features
- Estimate monthly payments for both phases of your HELOC
- Visualize your payment amounts side by side
- See a breakdown of total estimated interest for better financial planning
Why Use This Calculator?
- Compare HELOC offers before you borrow
- Plan your budget for both draw and repayment periods
- Understand your future obligations with clear SEO-optimized advice