HELOC Payment Calculator
Draw Period Payment (interest only)
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Repayment Period Payment
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Total Interest (draw period)
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Total Interest (repayment)
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How HELOC Payments Work
A HELOC (Home Equity Line of Credit) typically has two phases. During the draw period (usually 5-10 years), you can borrow and repay as needed, making interest-only minimum payments. During the repayment period (10-20 years), you repay principal plus interest in fixed monthly installments.
The payment jump from draw to repayment period can be significant. Interest-only payments on $50,000 at 8.5% are about $354/month, but full repayment over 20 years jumps to about $434/month. Planning for this increase is essential.
HELOC rates are typically variable, tied to the prime rate. This calculator shows payments at the current rate — actual payments will fluctuate. Consider whether the draw period rate could increase before the repayment phase begins.
Frequently Asked Questions
What is a HELOC?
A Home Equity Line of Credit lets you borrow against your home equity with a revolving credit line, similar to a credit card but secured by your home.
What is the draw period?
The initial phase (5-10 years) when you can borrow and repay funds. Minimum payments are typically interest-only during this period.
Why do HELOC payments increase?
When the draw period ends, you must start repaying principal. Payments jump because you're now paying both principal and interest.
Are HELOC interest rates fixed?
Most HELOCs have variable rates tied to the prime rate. Some lenders offer fixed-rate options for portions of the balance.