HELOC Calculator
Calculate monthly interest-only and repayment phase payments for a Home Equity Line of Credit (HELOC).
Input Parameters
Results
How HELOC Works
A HELOC has two phases: the draw period (typically 10 years) where you pay interest only on the drawn amount, and the repayment period (10-20 years) where you repay principal + interest. Rates are usually variable.
What is the HELOC Calculator?
The HELOC (Home Equity Line of Credit) Calculator models the payments on a revolving line of credit tied to your house. Unlike a fixed home equity loan, a HELOC acts like a giant credit card secured by your property.
How It Works (Formula)
HELOCs have two phases. In the "Draw Period" (usually 10 years), you only have to pay interest on the money you actually spend. The calculator uses the simple interest formula based on your current drawn balance. In the "Repayment Period," it switches to a forced amortization schedule.
$$ \text{Draw Phase Payment} = \text{Drawn Balance} \times \frac{\text{Interest Rate}}{12} $$
The interest-only payment algorithm for the first 10 years of a HELOC.
How to Use It
Input the total credit line available to you, and the amount you actually plan to borrow (draw). Enter the interest rate. The calculator will show your initial interest-only payment, and estimate the massive jump in payments once the repayment phase triggers.