Calculate your Home Equity Line of Credit limit, draw-period interest, and repayment schedule.
Our free HELOC (Home Equity Line of Credit) calculator estimates your payments during both phases of a HELOC: the draw period, when you typically pay interest-only on what you've borrowed, and the repayment period, when you pay both principal and interest to pay off the remaining balance. Enter your home value, mortgage balance, and borrowing plans to see payments for both phases.
Maximum Credit Line = (Home Value × Lender's LTV Limit%) − Existing Mortgage Balance. Most lenders cap combined borrowing at 80-85% of your home's value.
During the draw period (typically 5-10 years), payments are usually interest-only: Monthly Payment = Outstanding Balance × (Annual Rate ÷ 12), and your balance grows each time you draw more funds.
During the repayment period (typically 10-20 years), the outstanding balance is amortized like a standard loan: Monthly Payment = P × [ i(1 + i)^n ] / [ (1 + i)^n − 1 ], where P is the balance at the start of repayment, i is the monthly rate, and n is the number of repayment months.
A HELOC works like a revolving line of credit, you can draw funds as needed up to your limit and often only pay interest during the draw period. A home equity loan gives you a fixed lump sum upfront with fixed monthly payments from day one.
Once the draw period ends, you enter the repayment period, where you can no longer draw new funds and must begin paying both principal and interest, which often causes a noticeable jump in your monthly payment compared to interest-only draw payments.
Most HELOCs have variable interest rates tied to a benchmark like the prime rate, meaning your payment can increase or decrease as rates change, unlike a fixed-rate home equity loan.
Yes, even though only interest payments are typically required during the draw period, you can pay down principal voluntarily at any time, which reduces your balance and the interest you'll owe, without penalty in most cases.