HELOC Calculator

What this HELOC calculator does

A home equity line of credit (HELOC) is a revolving credit line secured by your home. It has two phases. During the draw period you can borrow, repay, and borrow again, and the required payment is often interest only. When the draw period ends, the line closes and the remaining balance is repaid over the repayment period.

This calculator estimates the interest-only payment during the draw period, the fully amortizing payment during repayment, the interest paid in each phase, and the effect of closing costs and annual fees.

How to use this calculator

1. Enter the amount you plan to draw, the interest rate, and the lengths of the draw and repayment periods.
2. Decide whether to include closing costs and annual fees.
3. If fees are included, enter the closing cost, choose whether it is a dollar amount or a percentage, and choose whether it is paid upfront or deducted from the line.
4. Click Calculate to see both phase payments, total interest, fees, and cash received.

The default example is a $50,000 line at 8% with a 5-year draw period and a 15-year repayment period, before optional fees.

HELOC payment formulas

Monthly rate = Annual rate ÷ 12
Draw-period payment = Drawn balance × Monthly rate
Draw-period payments = Draw-period payment × Draw months
Repayment payment = amortized payment on the balance over the repayment months
Repayment payments = Repayment payment × Repayment months
Draw interest = Draw-period payments
Repayment interest = Repayment payments − Drawn balance
Total interest = Draw interest + Repayment interest

The repayment payment uses the standard amortization formula:

M = P × r × (1 + r)^n / ((1 + r)^n − 1)

P is the balance at the end of the draw period, r is the monthly interest rate, and n is the number of repayment months.

Closing costs and annual fees are optional. A closing cost can be deducted from the line, which reduces the cash you receive, or paid upfront, which is added to the total cost. The annual fee is multiplied by the total number of years in both phases.

What the results mean

• Draw-period monthly pay: the interest-only payment while the line is open.
• Repayment monthly pay: the fully amortizing payment after the draw period ends.
• Draw and repayment payments: the total paid in each phase.
• Total interest: the full cost of borrowing before fees.
• Closing costs and annual fees: optional charges shown separately.
• Cash received: the line amount minus any deducted closing cost.
• Total cost: payments plus the fees that apply to your chosen timing.

The jump from the interest-only payment to the amortized payment is the most important number for budgeting. The repayment payment can be substantially higher because it must retire the entire balance over a shorter period.

Assumptions and limitations

This calculator assumes a constant interest rate for both phases, a single draw taken at the start, no additional draws or repayments during the draw period, and no voluntary extra payments. Real HELOCs usually have variable rates tied to an index, and the rate can change during either phase. The calculator also does not model interest-only repayment options, balloon features, rate caps, or lender-specific minimum payment rules.

It does not check your home value, first-mortgage balance, combined loan-to-value ratio, credit, or income. Closing costs and annual fees vary by lender and by state. The result is a planning estimate, not a line offer.

Frequently asked questions

What happens when the draw period ends?

The line stops allowing new draws and the remaining balance enters repayment. The payment usually rises because it now includes principal as well as interest. This calculator shows both payments side by side.

Is the HELOC rate fixed?

Usually not. Most HELOCs have variable rates that move with an index. This calculator holds the rate constant so you can see the structure of the payments. A rate increase raises both the draw-period interest and the repayment payment.

Can I pay more than the required amount?

Many lenders allow extra payments, and paying principal during the draw period reduces the balance that must be repaid later. This calculator does not model extra payments, so its interest figures are based on the scheduled payments only.

Are closing costs always charged?

Not always. Some lenders waive or reduce closing costs, and some charge an annual fee. The fee section is optional so you can compare a no-fee line with a line that has upfront costs.

Source

References:

• Consumer Financial Protection Bureau — What is a home equity line of credit (HELOC)?
• Consumer Financial Protection Bureau — Mortgages

Disclaimer

This calculator is for informational and educational purposes only. It is not a line of credit offer, a loan estimate, or financial advice. HELOC rates, fees, and terms vary by lender and can change. Confirm all figures and repayment terms with a qualified lender before borrowing against your home.