HELOC payment calculator
Compare an interest-only draw payment with the payment when HELOC repayment begins.
Your numbers
Rates shown are editable examples, not current offers.
Payment when repayment begins
$728Up from $400 a month while payments are interest-only.
- Interest-only payment now
- $400
- Change when repayment begins
- +$328
- Repayment payment at 10%
- $793
- Interest over the rest of the draw period
- $14,400
- Interest over the repayment period
- $27,356
- Repayment-period interest at 10%
- $35,149
Understand this estimate
Assumes the balance stays the same for the rest of the draw period (interest-only payments, no new draws or paydown), then is repaid in equal monthly payments over the repayment period at the rate you enter. HELOC rates are usually variable; the rate-increase line tests one higher constant rate, not a forecast. Some lines require principal during the draw period, charge fees, or end with a balloon payment, so check your agreement.
How the calculation works
During the draw period, many HELOCs require only interest. The calculator finds that payment as the balance times the annual rate divided by 12, and assumes the balance stays the same for the rest of the draw period.
When the draw period ends, the balance is repaid in equal monthly payments over the repayment period you choose, using the standard amortization formula. Because HELOC rates are usually variable, the calculator also repeats the repayment calculation at a higher rate so you can see how much room a rate increase would need in your budget.
Worked example: $60,000 at 8%
A $60,000 balance at 8% costs $400 a month while payments are interest-only. If the draw period has three years left, that is $14,400 of interest with no reduction in the balance. When a 10-year repayment period begins, the payment becomes about $728, an increase of about $328 a month with no change in the rate. Repayment adds $27,356 of interest over the 10 years. If the rate were 10% instead when repayment begins, the payment would be about $793 and repayment-period interest about $35,149.
Common questions
Why does the payment jump if the rate does not change?
An interest-only payment repays none of the balance. Once repayment begins, each payment must cover interest and a share of the principal so the balance reaches zero by the end of the repayment period.
What if my HELOC requires principal during the draw period?
Then your balance falls before repayment begins and the jump is smaller. Use your agreement’s minimum-payment formula and your current balance to see where you stand.
How can a variable rate change my payment?
A variable HELOC rate is usually an index plus a margin, so the payment is recalculated when the index moves. The higher-rate line shows one scenario; your agreement describes how often the rate can change and any caps.
Can I refinance the balance instead?
Possibly, but approval depends on your credit, income, home value, and rates at the time. Plan for the repayment payment first rather than counting on a refinance.
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