HELOC Calculator: Draw Payment, Repayment and Interest

How the HELOC estimate works

A home equity line of credit has a reusable credit limit and an outstanding balance. During the draw period, this calculator assumes the required payment is interest only on a constant APR. Any extra principal entered reduces the balance each month. It assumes no additional draws.

Draw period and repayment period

The draw period permits borrowing up to the line limit, subject to the lender agreement. When it ends, many HELOCs convert the remaining balance to principal-and-interest payments over a fixed repayment period. The estimated repayment payment uses the balance remaining after any voluntary draw-period principal payments.

Variable-rate assumption

HELOC rates are commonly variable. The current draw APR and assumed repayment APR are separate so you can test a rate change. The result is a scenario, not a rate forecast. It does not model monthly index changes, rate caps, floors, promotional rates, or future draws.

Example

For a $50,000 balance at 8.5%, the initial interest-only payment is about $354 per month. If no principal is paid during a 10-year draw period, the full $50,000 enters repayment. At the same rate over 20 years, the principal-and-interest payment is about $434 per month.

Important limits

The maximum line estimate is based only on the entered CLTV assumption. Actual limits and payments depend on appraisal, credit, income, lien position, minimum draws, fees, lender rules, the index and margin, and the contract’s rate-adjustment provisions. Taxes, insurance, closing costs, annual fees, inactivity fees, prepayment rules, and the first mortgage payment are excluded.

Related calculators

• Home Equity Loan Calculator — estimate a fixed lump-sum second-lien loan.
• Mortgage Refinance Calculator — compare replacing the first mortgage.
• Mortgage Payoff Calculator — test extra payments on a fixed mortgage.