HELOC Payment Calculator
Estimate your home equity line of credit payment in both the interest-only draw period and the amortizing repayment period.
How to use this tool
- Enter your outstanding HELOC balance and current APR.
- Enter the repayment term used to amortize the balance.
- Compare the interest-only draw payment with the higher repayment payment.
- Plan ahead for the repayment-period jump.
A HELOC usually starts cheap with interest-only payments, then jumps when repayment begins. Enter your balance and rate to see both the draw-period and repayment-period payments so the change does not catch you off guard.
Formula
Interest-only payment (draw period) = balance × (APR ÷ 12). You pay only interest; the balance does not fall.
Repayment payment = B · r / (1 − (1 + r)−n), where r = APR ÷ 12 and n = repayment years × 12. This fully amortizes the balance.
Total interest in repayment = repayment payment × n − balance.
How it works
A home equity line of credit (HELOC) has two phases. During the draw period you can borrow against the line and typically owe interest only, so the minimum payment is simply the balance times the monthly rate and the principal stays put. When the draw period ends, the line enters the repayment period, where the outstanding balance is amortized into level principal-and-interest payments over the remaining term — usually a jump in the monthly payment.
This calculator shows both numbers so the payment shock is visible up front. HELOC rates are usually variable and tied to an index such as the prime rate, so the payment can change as rates move; enter the current APR for a snapshot. The estimate assumes a fixed rate over the repayment term and ignores annual fees, draw minimums, and any balloon features in your agreement.
Reviewed by the AbraCalc Mortgage Desk. Educational estimate only, not financial advice; check your HELOC agreement for the actual draw length, index, and margin.
Worked example
$50,000 HELOC at 8% APR, 10-year repayment
- Monthly rate r = 8% ÷ 12 = 0.0066667.
- Interest-only payment = 50,000 × 0.0066667 = $333.33.
- Repayment term n = 10 × 12 = 120 months.
- Repayment payment = 50,000 × 0.0066667 ÷ (1 − 1.0066667^−120) = $606.64.
- Total interest in repayment = 606.64 × 120 − 50,000 = $22,796.56.
Interest-only payment $333.33; repayment payment $606.64; total repayment interest $22,796.56
HELOC payment per $10,000 of balance, by APR
| APR | Interest-only payment | 10-yr repayment payment |
|---|---|---|
| 6% | $50.00 | $111.02 |
| 7% | $58.33 | $116.11 |
| 8% | $66.67 | $121.33 |
| 9% | $75.00 | $126.68 |
| 10% | $83.33 | $132.15 |
| 12% | $100.00 | $143.47 |
Key terms
- HELOC
- A home equity line of credit — a revolving credit line secured by your home's equity.
- Draw period
- The phase when you can borrow against the line and usually pay interest only.
- Repayment period
- The phase when no more draws are allowed and the balance amortizes into principal-and-interest payments.
- Payment shock
- The jump in monthly payment when a HELOC moves from interest-only to full repayment.
Frequently asked questions
- Why is my HELOC payment so low at first?
- During the draw period most HELOCs require interest only, so you pay just the monthly interest and the principal stays unchanged. Payments rise sharply when the repayment period begins and principal is added.
- What happens when the draw period ends?
- You can no longer borrow against the line, and the balance is amortized into principal-and-interest payments over the repayment term. This usually means a substantially higher monthly payment.
- Are HELOC rates fixed?
- Most HELOCs carry a variable rate tied to an index like the prime rate plus a margin, so your payment can rise or fall over time. Some lenders offer fixed-rate conversion options on portions of the balance.