HELOC Calculator
Payments now, and when repayment starts
- Payment once repayment startsprincipal + interest over 20 years
- $418.22
- Payment increasewhen the draw period ends
- ! +$85
- Credit line you may qualify forat 85% combined loan-to-value
- $175,000
- Total interestif the rate stays the same
- $90,373
- Combined loan-to-value
- 60.0%
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Estimate, not a loan offer. Most HELOCs have variable rates, so payments can change. We may earn a commission when you click. It does not change your estimate. How we calculate · How we make money
Compare HELOC offers
HELOC rates, fees and draw terms differ a lot between lenders. Compare offers before you open a line.
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How HELOC payments work
A home equity line of credit (HELOC) works in two stages. During the draw period, often 10 years, you can borrow from the line as you need it, and many HELOCs only require interest on what you've borrowed. During the repayment period, often 20 years, you can't draw any more, and the payment covers principal and interest.
In the example, $50,000 drawn at 8% costs about $333 a month interest-only. When repayment starts, the payment rises to about $418 for 20 years. If you only pay interest during the draw, total interest comes to about $90,000. Paying down principal during the draw period lowers both the later payment and the total.
How big a credit line can you get?
Lenders cap the line so all loans on the home stay under a combined loan-to-value limit, often 80% to 90%. A $500,000 home with a $250,000 mortgage at an 85% limit could support a line of up to $175,000. Your credit, income and the lender's rules decide the final amount.
Watch for
- Variable rates. Most HELOC rates follow the prime rate. This calculator assumes the rate stays the same; try a higher rate to see the risk.
- The payment jump. Plan for the higher payment when the draw period ends.
- Fees. Some lines charge annual fees, early closure fees or minimum draws.
- Your home is the collateral. Missing payments can lead to foreclosure.
Want a fixed payment instead? Compare a home equity loan.
Frequently asked questions
What is a HELOC and how does it work?
HELOC stands for home equity line of credit. It's a revolving credit line secured by your home. During the draw period, often 10 years, you borrow as needed and many lines require only interest. In the repayment period, often 20 years, you pay back principal and interest.
How is a HELOC payment calculated?
During the draw period, an interest-only payment is the balance times the annual rate, divided by 12: $50,000 at 8% is about $333 a month. In repayment, the balance is paid off like a regular loan: about $418 a month over 20 years at the same rate.
Are HELOC rates fixed or variable?
Most are variable and move with the prime rate, so payments can rise. Some lenders let you lock part of the balance at a fixed rate.
What happens when the HELOC draw period ends?
You can no longer borrow, and the payment switches to principal and interest, which can be a big jump. You can plan for it by paying down principal during the draw period or refinancing the balance.