HELOC Calculator
Interest-only and repayment payments on a HELOC.
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Enter your numbers to see the result.
This HELOC calculator estimates the costs of a home equity line of credit. It shows how large a credit line you might get at your lender’s CLTV limit, the interest-only payment during the draw period, the higher principal-and-interest payment once the repayment period starts, and what happens to the payment if the variable rate rises.
What is a HELOC Calculator?
A home equity line of credit (HELOC) is a revolving credit line secured by your home. During the draw period, often 10 years, you can borrow, repay and borrow again, and many HELOCs require only interest payments. After that, the repayment period begins and you must pay back principal and interest, often over 20 years.
Because most HELOC rates are variable and the payment jumps when repayment starts, it is important to plan for both phases. This HELOC calculator shows the credit line, both payments and a rate-rise scenario.
How does the HELOC Calculator work?
The credit line is the home value times the CLTV limit minus your mortgage balance. During the draw period the payment is the amount drawn times the rate divided by 12. In the repayment period, the balance is repaid with the standard loan payment formula over the repayment years. The rate-rise line repeats this at a higher rate.
How to use the HELOC Calculator step by step
- Enter your home value and mortgage balance.
- Enter the lender’s CLTV limit.
- Enter how much you plan to draw.
- Enter the rate, draw period and repayment period.
- Set a rate rise to test.
- Read both payments and plan for the jump.
HELOC Calculator example with real numbers
Tom’s home is worth $450,000 and he owes $250,000. His bank offers a HELOC up to 85% CLTV at 8.5% variable, with a 10-year draw and 20-year repayment. He plans to draw $50,000.
| Example input | Value |
|---|---|
| Current home value | $450,000 |
| Mortgage balance | $250,000 |
| Lender's maximum CLTV | 85% |
| Amount you plan to draw | $50,000 |
| Current HELOC rate (variable) | 8.5% |
| Draw period | 10 years |
| Repayment period | 20 years |
| Rate rise to test | 2% |
| Example output | Value |
|---|---|
| Interest-only payment (draw period) | $354 |
| Estimated credit line | $132,500 |
| Amount drawn | $50,000 |
| Repayment-period payment | $434 |
| Payment jump at repayment | $80 a month |
| Repayment payment if rate rises 2.00 points | $499 |
| Total interest (draw + repayment) | $96,639 |
The HELOC calculator shows an interest-only payment of $354 during the draw period, rising to $434 when repayment starts. If rates rise 2 points, it would be $499.
Key features of this HELOC Calculator
- Credit line estimate
- Interest-only payment
- Repayment-period payment
- Payment shock and rate-rise test
- Total interest
Who should use the HELOC Calculator?
Who is this HELOC Calculator for?
- Homeowners planning staged renovations
- People with ongoing education costs
- Business owners needing flexible credit
- Anyone comparing HELOC and home equity loans
Practical use cases
- Budgeting for a HELOC
- Planning for the end of the draw period
- Stress-testing a variable rate
- Comparing with a fixed home equity loan
Key benefits
- Both phases: no surprises.
- Stress test: rate rise.
- Clear limit: credit line.
- Private: runs in your browser.
Tips for better results
- Pay some principal during the draw period to soften the later jump.
- Ask about rate caps and conversion to a fixed rate.
- Check annual fees and early closure fees.
- Draw only what you need.
Common mistakes to avoid
- Budgeting only for the interest-only payment.
- Ignoring rate rises.
- Using a HELOC for everyday spending.
- Forgetting the home is collateral.
Limitations of this HELOC Calculator
- Rates are assumed fixed within each scenario.
- Balance is assumed drawn at once.
- Fees and minimum payments vary by lender.
HELOC Calculator vs other ways to calculate
| Feature | HELOC | Home equity loan |
|---|---|---|
| Rate | Usually variable | Fixed |
| Payout | Draw as needed | Lump sum |
| Early payments | Often interest-only | Principal and interest |
| Best for | Ongoing or uncertain costs | One-time known cost |
For a fixed-rate lump sum, use the home equity loan calculator. To check your overall debt load, try the debt-to-income calculator.
Privacy and data handling
This HELOC Calculator runs entirely in your browser. The numbers you type are not sent to Qorico or stored on any server, and nothing is saved after you close the page. The Copy and Download buttons create the result on your own device. If the page has analytics turned on, it may count that a calculation happened, but it does not record the values you entered.
HELOC Calculator FAQs
How is a HELOC payment calculated?
During the draw period, usually balance × rate ÷ 12. During repayment, principal and interest over the remaining term.
How much HELOC can I get?
Often up to 80% to 90% of the home’s value minus your mortgage balance.
What happens when the HELOC draw period ends?
You can no longer borrow and must repay principal and interest, so the payment usually rises.
Are HELOC rates fixed?
Most are variable, tied to the prime rate plus a margin.
Can I pay off a HELOC early?
Usually yes, though some lenders charge an early closure fee.
Is HELOC interest tax-deductible?
Only if the money is used to buy, build or substantially improve the home, within IRS limits.
Related tools
Sources and references
We checked the method and the current figures used in this HELOC Calculator against these official and primary sources:
- CFPB: What is a home equity line of credit (HELOC)?
- Consumer Financial Protection Bureau
- IRS Publication 936: Home mortgage interest deduction
Written and reviewed by the Qorico Team
