HELOC Calculator
Estimate the payment on a home equity line of credit if fully drawn and repaid on a fixed schedule.
Your Details
Principal vs. Interest
Share of total amount paid over the loan term
- Principal$40.0K
- Interest$19.5K
Payment by Interest Rate
How your monthly payment changes with rate
Principal vs. Interest by Year
How your payments are split each year
Year-by-Year Schedule
Full breakdown of principal, interest, and balance
| Year | Principal | Interest | Balance |
|---|---|---|---|
| Year 1 | $2,653 | $3,298 | $37,347 |
| Year 2 | $2,888 | $3,064 | $34,459 |
| Year 3 | $3,143 | $2,808 | $31,316 |
| Year 4 | $3,421 | $2,531 | $27,896 |
| Year 5 | $3,723 | $2,228 | $24,173 |
| Year 6 | $4,052 | $1,899 | $20,121 |
| Year 7 | $4,410 | $1,541 | $15,711 |
| Year 8 | $4,800 | $1,151 | $10,910 |
| Year 9 | $5,224 | $727 | $5,686 |
| Year 10 | $5,686 | $265 | $0 |
How It Works
- Enter the loan amount you're financing.
- Enter the interest rate and loan term.
- Press Calculate to see your payment and full schedule.
- Use Reset any time to start over from the defaults.
Formula Used
P = amount drawn, r = monthly interest rate, n = number of monthly payments. Real HELOCs often have variable rates and an interest-only draw period.
Good to Know
- • A shorter term means a higher payment but less total interest.
- • Your actual rate depends on credit history and lender.
- • Paying extra toward principal shortens the payoff time.
Important Notes
- • Rates shown are for comparison, not a live quote.
- • Fees are not included in this estimate.
- • Consult a lender for a formal offer.
How a HELOC Differs From a Home Equity Loan
A HELOC is a revolving line of credit secured by your home equity, similar in structure to a credit card — you draw what you need, when you need it, up to a set limit, rather than receiving a lump sum upfront like a home equity loan. Many HELOCs have a draw period (often interest-only payments) followed by a repayment period where the balance amortizes, similar to what this calculator models as a simplified fixed-payment estimate.
Variable Rates Are the Norm
Unlike most fixed-rate mortgages, HELOCs commonly carry a variable interest rate tied to a benchmark rate, meaning the payment can change over the life of the line of credit. This calculator assumes a fixed rate for simplicity — in practice, it's worth stress-testing a HELOC payment against a higher rate scenario, since payments can rise if benchmark rates increase.
Words You'll Run Into
- Draw period — the phase where you can borrow against the line, often with interest-only payments.
- Repayment period — the phase after the draw period, where the balance amortizes to zero.
- Variable rate — a rate that adjusts with a benchmark index, common on HELOCs.
Here's How It Works: Repaying a $40,000 Draw
At 8.5% over a 10-year fixed repayment schedule:
M = 40,000 × 0.007083 ÷ (1 − 1.007083⁻¹²⁰) ≈ $496/month
Total interest over 10 years ≈ $19,520
Because HELOC rates are commonly variable, this payment assumes the rate stays flat — in practice, a rising-rate environment could push the payment meaningfully higher partway through repayment, which is worth stress-testing against a higher assumed rate.
Draw Amount Comparison Table
At 8.5% over a 10-year repayment period:
| Draw Amount | Monthly Payment |
|---|---|
| $20,000 | $248 |
| $40,000 | $496 |
| $60,000 | $744 |
Slip-Ups to Watch For With HELOCs
- Not budgeting for rate increases — variable rates can rise during repayment.
- Treating the line like free money — it's still debt secured by your home.