HELOC Loan Calculator

How this HELOC loan calculator works

This home equity line of credit calculator follows a HELOC through its two stages. During the draw period you can borrow against the line and usually pay only interest. During the repayment period the line closes and you pay back the balance with interest in equal monthly payments. Enter the amount you borrow, the interest rate, and the length of each period, and the HELOC calculator shows both monthly payments, the total of all payments, the total interest, and a full amortization schedule.

For example, borrowing $75,000 at 8.5% with a 10-year draw period and a 20-year repayment period costs $531.25 a month during the draw period and $650.87 a month during the repayment period. Over 360 payments you pay $219,958.18, of which $144,958.18 is interest.

HELOC payment calculator formulas

With balance P, monthly rate r (the annual rate ÷ 12), and n monthly payments in the repayment period:

Draw period payment = P × r
Repayment period payment = P × r ÷ [1 − (1 + r)⁻ⁿ]

The calculator assumes you draw the full amount on day one and make only the interest-only minimum payment until the draw period ends, so the balance does not fall until the repayment period starts. That is when the payment jumps, which the "Loan balance and cumulative payments" chart shows as the point where the balance line begins to drop.

HELOC closing costs, annual fees, and APR

Turn on closing costs and fees to add upfront costs such as appraisal and origination fees, entered as a dollar amount or a percentage of the line, and an annual fee charged each year of the draw period, which is counted as 1/12 of the fee each month. The calculator then shows the cost of the HELOC (interest plus closing costs and annual fees) and an APR with fees, which spreads those costs over the life of the line using the actuarial method.

This APR with fees is not the APR on a lender's HELOC disclosure. For a home equity line, the disclosed APR is the interest rate alone and does not include costs other than interest, so compare the fees on each offer separately or use the APR with fees to put them on equal footing. With $1,500 in closing costs and a $75 annual fee, the example above has an APR with fees of 8.776%.

Frequently asked questions

How is a HELOC monthly payment calculated?

During the draw period, the minimum payment is usually interest only: the balance times the annual rate, divided by 12. A $75,000 balance at 8.5% is $531.25 a month. During the repayment period, the balance is paid off like a fixed-rate loan, so the payment uses the standard loan payment formula above.

How much HELOC can I get?

Lenders usually let your mortgage and HELOC together reach 80% to 90% of your home's value. Multiply your home's value by that limit and subtract what you owe on your mortgage. A $500,000 home with a $220,000 mortgage and an 80% limit leaves a credit line of up to $180,000. Use the "How Much Can I Borrow?" tab to try your own numbers.

Is this a HELOC interest-only calculator?

Yes. The draw period payment is the interest-only payment on the amount you borrow. Set the repayment period to see what happens when interest-only payments end.

Is this a HELOC repayment calculator?

Yes. The repayment period payment is what you owe each month once the draw period ends, and the amortization schedule shows how much of each payment goes to interest and principal. Set the draw period to 0 to see a HELOC that is already in repayment.

How do HELOC rates affect my payment?

Most HELOCs have a variable rate tied to an index such as the prime rate, so the payment changes when the rate changes. The calculator uses one rate for the whole term. To see how a rate change would affect you, run it again with a higher or lower rate.

What is the difference between a HELOC and a home equity loan?

A home equity loan pays out a lump sum, usually at a fixed rate, with equal payments from the start. A HELOC is a line of credit you draw from as needed, usually at a variable rate, with interest-only payments during the draw period. Use the Home Equity Loan Calculator for a fixed-rate lump-sum loan.

Limitations

The results assume the full amount is borrowed at the start, the rate never changes, and you pay only the minimum during the draw period. Real HELOC balances change as you draw and repay, some plans require principal payments during the draw period, and some end with a balloon payment instead of a repayment period. Your home secures the line, so missed payments can lead to foreclosure. Treat the results as estimates, not financial advice.