HELOC Payment Calculator
Estimate HELOC payments across the interest-only draw period and the amortizing repayment period, with total interest. Runs in your browser.
HELOC payments
- Interest-only payment (draw, 10 yr)
- $354.17/mo
- Repayment payment (20 yr)
- $433.91/mo
- Interest paid during draw
- $42,500.00
- Total interest (both phases)
- $96,638.79
During the draw period, the minimum is interest only: payment = balance × APR ÷ 12, so no principal is paid down. After it, the balance amortizes over the repayment period: payment = P × r ÷ (1 − (1 + r)^−n) — often a large jump ("payment shock"). HELOC rates are typically variable, so payments change with rates. Informational, not a loan offer.
About this tool
A Home Equity Line of Credit (HELOC) has two phases, and this calculator shows both. During the draw period (often about 10 years) you can borrow against the line and the minimum payment is typically interest only — calculated as the outstanding balance times the annual rate divided by 12 — so the payment is low but you pay down no principal. When the draw period ends, the line enters the repayment period (often 10–20 years), and the balance amortizes with the standard loan formula, which usually causes a sharp jump in payment known as 'payment shock.' The tool computes the interest-only payment, the later amortizing payment, the interest paid during the draw phase, and the total interest across both phases, so you can see the full cost and prepare for the increase. HELOC rates are usually variable (tied to the prime rate), so real payments move with rates — enter your current rate for a snapshot. Borrowing against your home puts it at risk if you cannot repay. It is informational, not a loan offer. Everything runs in your browser.
How to use it
- Enter the amount you've drawn and the APR.
- Set the draw period and repayment period lengths.
- Compare the interest-only payment to the later repayment payment.
- Plan for the payment jump and remember the rate is usually variable.
Frequently asked questions
- How is the interest-only payment calculated?
- Balance × annual rate ÷ 12. On a $50,000 balance at 8.5%, that is about $354/month — and none of it reduces the principal, so the balance stays the same until you pay extra or enter repayment.
- What is "payment shock"?
- The jump when the draw period ends and the balance must amortize over the repayment period. The payment can roughly double or more, because it now includes principal. The tool shows both so you can prepare.
- Why are HELOC payments variable?
- Most HELOCs have a variable rate tied to the prime rate plus a margin, so the rate — and your payment — can rise or fall over time. This calculator uses the single rate you enter; budget for the possibility of higher rates.
- Can I pay principal during the draw period?
- Usually yes, and it is wise to. Paying more than the interest-only minimum reduces the balance, lowers future interest, and softens the payment shock at repayment. The interest-only figure here is just the minimum.
- What are the risks of a HELOC?
- Your home is collateral, so missed payments can lead to foreclosure. Variable rates can raise payments, and interest-only minimums can lull borrowers into not reducing principal. Borrow conservatively relative to your equity and income.
- Is this a loan offer?
- No. It is an informational estimate; actual terms, rates, and draw/repayment structures come from your lender.