Home Equity Line of Credit (HELOC) Calculator

Calculate your Home Equity Line of Credit payments and available credit

Calculator

Home Information

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$

HELOC Terms

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Usage Scenario

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Results

Home Equity Summary

Current Home Value$0
Mortgage Balance$0
Current Equity$0
Credit Limit$0
HELOC Draw$0
Loan-to-Value Ratio 0%

Credit Utilization

0%

Remaining HELOC Balance

$0

Payment Information

Draw Period Payment
$0
Monthly
Repayment Payment
$0
Monthly

Cost Breakdown

Total Interest (Draw Period)$0
Total Interest (Repayment)$0
Total Interest Cost$0
Total Amount Repaid$0

How to use

Use this calculator to compare different borrowing scenarios, and evaluate interest-only versus principal-plus-interest options.

Step-by-Step Instructions:
  1. Select your preferred currency
  2. Enter your current home market value based on recent appraisals or comparable sales
  3. Input your outstanding mortgage balance from your latest mortgage statement
  4. Specify your approved credit limit or leave it blank to estimate the maximum
  5. Set your HELOC interest rate (APR) provided by your lender or estimated market rate
  6. Choose your draw period length
  7. Define your repayment period duration
  8. Determine the amount you plan to borrow from your available credit line
  9. Toggle interest-only payments during the draw period if applicable
The HELOC Calculator Results Include:
  • Home Equity Summary - The current equity position and loan-to-value ratio
  • Remaining HELOC Balance - The maximum credit (80% of the home value minus the mortgage balance and HELOC draw) or the Credit Limit minus the HELOC draw
  • Credit Utilization - The percentage of your credit limit used by the amount borrowed
  • Monthly Payments - The payments for the draw and repayment periods
  • Total Interest Costs - The interest expense analysis for both loan phases

Amortization Schedule

Payment Breakdown Over Time

Payment Schedule Summary

YearPeriodPaymentInterestPrincipalBalance
Export to Excel: Download your complete HELOC amortization schedule as a CSV file compatible with Microsoft Excel, Google Sheets, and other spreadsheet applications for detailed analysis and record keeping.

Understanding Home Equity Lines of Credit (HELOC)

What is a HELOC?

A Home Equity Line of Credit (HELOC) is a revolving credit line secured by your home's equity. It works like a credit card with your home as collateral.

A home equity line of credit calculator is an essential tool for homeowners looking to access their home's equity. Unlike traditional loans, a HELOC operates in two distinct phases that affect how you calculate HELOC payments and manage your monthly financial obligations.

How to Calculate HELOC Payment: Understanding the Two-Phase Structure

When you use a home equity line of credit payment calculator, you'll notice calculations differ significantly between the draw period and repayment period. The draw period typically lasts 5-20 years, during which you can access funds and often make interest-only payments. The repayment period follows, lasting 10-30 years, where you must repay both principal and interest.

HELOC PhaseDurationPayment TypeAccess to FundsPayment Calculation
Draw Period5-20 yearsInterest-only or Principal + InterestYes, up to credit limitBalance × (Interest Rate ÷ 12)
Repayment Period10-30 yearsPrincipal + InterestNo new borrowingStandard amortization formula

Calculate HELOC Payment Interest Only: Draw Period Calculations

An interest only home equity line of credit calculator focuses on the draw period payments, which are typically the lowest monthly payments you'll face. To calculate HELOC payment interest only, multiply your outstanding balance by your monthly interest rate (annual rate divided by 12).

Interest-Only Payment Formula

Monthly Interest-Only Payment = Outstanding Balance × (Annual Interest Rate ÷ 12)

Example: $50,000 balance × (6.5% ÷ 12) = $270.83 monthly payment

Home Equity Line of Credit Calculator Monthly Payment: Repayment Period

When using a home equity line of credit calculator monthly payment feature for the repayment period, the calculation becomes more complex. You'll need to calculate HELOC repayment using standard loan amortization formulas that include both principal and interest components.

The line of credit home equity calculator uses this formula for repayment period calculations:

M = P × [r(1+r)^n] / [(1+r)^n - 1]
Where:
M = Monthly payment
P = Principal balance
r = Monthly interest rate
n = Number of months in repayment period

Calculator HELOC Payment Scenarios: Real-World Examples

A comprehensive calculator HELOC payment tool should show you various scenarios. Here's how different approaches to calculate home equity line of credit payments affect your long-term costs:

ScenarioHELOC DrawInterest RateDraw Period PaymentRepayment Period PaymentTotal Interest Cost
Interest-Only During Draw$75,0007.0%$437.50$581.47$117,053.81
Principal + Interest Throughout$75,0007.0%$498.98$498.98$104,631.67

Home Equity Line Loan Calculator: Key Features to Look For

When selecting a home equity line loan calculator, ensure it includes these essential features for accurate home equity line of credit calculator payment calculations:

  • Interest-Only Toggle: Option to calculate both payment types during draw period
  • Amortization Schedule: Detailed payment breakdown over entire loan term
  • Credit Utilization Analysis: Review your borrowing against the available credit limit
  • Payment Comparison: Side-by-side analysis of different payment strategies

Home Equity Line of Credit Payment Calculator Interest Only: Pros and Cons

Using a home equity line of credit payment calculator interest only option reveals both advantages and drawbacks of this payment structure:

Interest-Only Advantages

  • Lower monthly payments during draw period
  • Improved cash flow for other investments
  • Flexibility to pay principal when financially convenient
  • Potential tax deductions on interest payments

Interest-Only Disadvantages

  • No principal reduction during draw period
  • Higher total interest costs over loan lifetime
  • Payment shock when repayment period begins
  • Risk of owing more than home's value in declining markets

Optimizing Your HELOC Strategy

Consider these optimization techniques when you evaluate HELOC repayment scenarios:

Pro Tips for HELOC Management

  • Make periodic principal payments during the draw period to reduce repayment phase shock
  • Monitor interest rate trends and consider locking in rates when favorable
  • Use HELOC funds for value-adding home improvements to maintain equity
  • Keep credit utilization below 30% for optimal credit score impact
  • Plan for interest rate increases by stress-testing payments at higher rates

Frequently Asked Questions (FAQs)

To calculate HELOC interest-only payments, multiply your outstanding balance by your monthly interest rate (annual rate ÷ 12). For example, if you borrow $50,000 at 7.5% APR, your monthly interest-only payment would be $312.50 ($50,000 × 0.075 ÷ 12). Our HELOC calculator automatically computes both interest-only and principal+interest payments for accurate comparison.

Most lenders allow you to borrow up to 80-85% of your home's value minus your existing mortgage balance. For a $400,000 home with a $200,000 mortgage, you could potentially qualify for a $120,000 HELOC (80% of $400,000 = $320,000 - $200,000 mortgage = $120,000). Our calculator automatically determines your maximum available credit based on these industry standards.

HELOC interest rates are typically higher than first mortgages but lower than credit cards or personal loans. As of 2025, HELOC rates range from 6-10% APR, while credit cards average 18-24% and personal loans average 10-15%. HELOCs also offer potential tax deductions if funds are used for home improvements, making them cost-effective for qualified borrowers.

During the repayment period (typically 10-30 years), you can no longer access new funds and must pay both principal and interest. Your payments will likely increase significantly from the draw period. For example, if you had $300 interest-only payments during the draw period, repayment period payments might jump to $500-600 monthly depending on the remaining term and balance.

Most HELOCs allow early payoff without prepayment penalties, but some lenders charge early closure fees if you pay off and close the line within the first 2-3 years. Always review your HELOC agreement for specific terms. Paying extra principal during the draw period can significantly reduce your total interest costs and repayment period payments.

HELOC credit utilization can impact your credit score, though less dramatically than credit card utilization. Keep your HELOC balance below 30% of the credit limit for optimal credit health. For a $100,000 HELOC, try to keep your balance under $30,000. Our calculator shows your utilization percentage to help you monitor this important metric.

Common HELOC fees include application fees ($300-500), appraisal fees ($400-600), annual fees ($50-100), and early closure fees ($300-500). Some lenders offer no-fee HELOCs but may charge higher interest rates. Calculate the total cost including fees when comparing HELOC offers from different lenders to find the best overall value.

Choose a HELOC if you need flexible access to funds over time, prefer variable rates, or have ongoing expenses like home renovations. Choose a home equity loan if you need a lump sum, want fixed payments, or prefer rate stability. HELOCs work well for projects with uncertain costs, while home equity loans suit one-time expenses with known amounts.