HELOC Payment Calculator
Calculate interest-only and repayment period payments for your HELOC.
This tool is for informational and educational purposes only. It is not a substitute for professional financial, medical, legal, or engineering advice. See Terms of Service.
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Request a ToolHow to Use the HELOC Payment Calculator
A HELOC has two distinct phases with different payment structures. This calculator shows both:
- Enter your credit line. This is the maximum amount your lender has approved. Common HELOC amounts range from $25,000 to $500,000.
- Enter the amount drawn. This is how much you plan to actually use. You only pay interest on what you draw, not the full credit line.
- Set the interest rate. HELOC rates are typically variable and based on the prime rate plus a margin. Enter your current or expected rate.
- Choose periods. The draw period is when you can borrow (typically 10 years, interest-only payments). The repayment period is when you pay back principal plus interest (typically 20 years).
- Review both payments. The primary result shows your draw-period payment. The context line shows the higher repayment-period payment and total interest.
About HELOCs
A Home Equity Line of Credit (HELOC) lets you borrow against the equity in your home. Unlike a home equity loan (which gives you a lump sum), a HELOC works like a credit card: you draw funds as needed during the draw period and only pay interest on what you use.
During the draw period (typically 5-10 years), you make interest-only payments. When the draw period ends, you enter the repayment period (typically 10-20 years), where your payment increases significantly because you are now paying both principal and interest. Planning for this payment increase is essential.
Frequently Asked Questions
What is the difference between a HELOC and a home equity loan?
A HELOC is a revolving credit line you draw from as needed, with variable rates. A home equity loan gives you a lump sum with a fixed rate and fixed payments. HELOCs offer more flexibility, while home equity loans offer payment predictability.
What happens when the HELOC draw period ends?
You can no longer borrow additional funds, and your payments increase because you now pay both principal and interest. This payment shock can be significant. For example, a $50,000 balance at 8.5% might go from $354/mo (interest-only) to $434/mo (amortized over 20 years).
Are HELOC interest payments tax deductible?
HELOC interest may be tax deductible if the funds are used to buy, build, or substantially improve the home securing the loan. Interest on funds used for other purposes (debt consolidation, vacations, etc.) is generally not deductible. Consult a tax professional for your specific situation.