What is a HELOC, and how does it work?

A HELOC is a line of credit secured by the home that lets you borrow up to a set limit, typically with an interest-only draw period followed by a repayment period for both principal and interest.

What’s the difference between a HELOC and a home equity loan?

A home equity loan provides a lump sum with fixed payments, while a HELOC is a revolving credit line you can draw from as needed, often with variable payments.

What are the risks of using a HELOC?

If you can’t make payments, you could lose your home. Also, interest rates may change, affecting your payments, and borrowing too much could put you in financial strain.

What information do I need to use this calculator?

You’ll need your desired line of credit amount, interest rate, draw period length, and repayment period length.

Can I export or save my results?

Yes, you can copy your results directly or export them as a PDF or Excel file for future reference.

Does the calculator account for variable interest rates?

No, this calculator assumes a fixed interest rate throughout the HELOC’s term for simplicity and clarity. For variable rates, consult your lender or use a more advanced tool.

HELOC Calculator

Easily calculate your HELOC payments and interest

Calculator Inputs

HELOC terms

Draw amount ($)

APR (%)

Draw period (years, 0–30)

Repayment period (years, 1–30)

Results

Payments and interest

Interest-only (draw)

$667

Repayment payment

$836

Total Interest

$180,746

Balance Over Time

Outstanding balance by year (draw + repay, 30 years)

Principal vs Interest by Year

Principal and interest paid each year (30 years)

Yearly Breakdown

First 15 years. Download full schedule for all 30 years.

Year	Principal	Interest	Balance
1	$0	$8,000	$100,000
2	$0	$8,000	$100,000
3	$0	$8,000	$100,000
4	$0	$8,000	$100,000
5	$0	$8,000	$100,000
6	$0	$8,000	$100,000
7	$0	$8,000	$100,000
8	$0	$8,000	$100,000
9	$0	$8,000	$100,000
10	$0	$8,000	$100,000
11	$2,114	$7,924	$97,886
12	$2,289	$7,748	$95,597
13	$2,479	$7,558	$93,118
14	$2,685	$7,352	$90,433
15	$2,908	$7,130	$87,526

Disclaimer: This tool is for educational and estimation purposes only. HELOC rates in the US are typically variable (e.g. prime + margin). This uses a fixed APR for illustration. Interest may be tax-deductible in certain cases (consult a tax advisor). This is not financial or legal advice.

How It Works

Here’s how to use the calculator and what to expect:

Step 1: Enter Your HELOC Details

Line of Credit Amount ($): The total amount you plan to borrow.
Interest Rate (%): The annual interest rate charged by your lender.
Draw Period (years): The initial phase (in years) during which you can borrow and only pay interest.
Repayment Period (years): The period (in years) after the draw phase when you pay back the principal and interest.

Once you input these values, click “Calculate” to get results, or “Reset” to clear and start over.

Step 2: Review Payments and Interest

Interest-only (draw) payment: Shows your monthly payment during the draw period. For example, with a $100,000 HELOC at 8% interest, your interest-only payment would be $667 per month.
Repayment payment: Displays your monthly payment in the repayment period, when you begin paying both principal and interest. Using the same example, this would be $836 per month.
Total interest: See the total amount of interest you’ll pay over the entire life of the HELOC—$180,746 in the example provided.

Step 3: Explore Visual Breakdown

Balance Over Time Chart: Visualizes your outstanding balance each year throughout the draw and repayment periods (up to 30 years).
Principal vs. Interest by Year: See how much of your payments go toward principal versus interest every year.
Yearly Breakdown Table: For the first 15 years, view how much principal and interest you pay annually, plus your remaining balance. Download the full schedule for all 30 years.

Step 4: Export or Share Your Results

Use the Copy button to quickly copy results.

Export your calculations as a PDF or Excel file for record-keeping or sharing with a lender or advisor.

Understanding Home Equity Lines of Credit (HELOCs)

A Home Equity Line of Credit, or HELOC, is a revolving loan that lets you borrow against the equity in your home.

Unlike a traditional loan, a HELOC typically has two phases: a draw period, during which you can borrow funds and pay only interest, and a repayment period, during which you pay back the principal plus interest.

HELOCs are often used for home improvements, debt consolidation, or large expenses.

However, understanding HELOC payments can be confusing. Your payment amount changes depending on whether you are in the interest-only draw phase or the repayment phase. This calculator helps you break down those payments and see the total interest costs, so you can make more informed financial decisions.

How This Calculator Helps

This HELOC calculator is designed to demystify your potential payments and total interest costs. By entering your line of credit amount, interest rate, draw period (in years), and repayment period (in years), you get clear, actionable results:

Interest-only (draw) payment: Your monthly payment amount during the initial phase, when you only pay interest on what you’ve borrowed.
Repayment payment: Your monthly payment once you begin paying back both principal and interest.
Total interest: How much you’ll pay in interest over the life of your HELOC.

The calculator also generates easy-to-understand charts and a detailed year-by-year breakdown, so you can see how your balance and payments change over time.