HELOC Payment Calculator

Home value

Existing mortgage balance

Desired HELOC credit limit

APR / interest rate (%) example

Amount you'll actually draw

Draw period (years)

Repayment period (years)

Example rate only. Your actual rate depends on your credit, combined loan-to-value (CLTV), and line amount, and HELOC rates are variable. Estimates are not a loan offer; all loans subject to credit approval and underwriting.

How to use this calculator

Most HELOC lenders allow you to borrow up to 80-85% of your home's value, minus your existing mortgage. The calculator computes the maximum credit line based on 85% LTV.

The two-phase payment structure:

• Draw period (typically 10 years): You can borrow as needed up to your credit limit. You pay interest only on the outstanding balance — no principal required during this period.
• Repayment period (typically 20 years): The line closes to new draws. Your balance amortizes — you pay principal plus interest over the remaining term.

This calculator assumes you draw the full "draw amount" at the start of the draw period, hold the balance through the draw years, and then repay over the full repayment period. Real-world HELOC use is more dynamic — you may draw and repay multiple times during the draw period, which reduces total interest cost.

HELOC payment math, explained

Draw period interest-only payment: outstanding balance × monthly rate. With $100K outstanding at an example 7.25% APR, monthly interest = $100,000 × (0.0725 / 12) = $604/month.

Repayment period amortizing payment: standard amortization formula based on outstanding balance at end of draw period, the APR, and the repayment term. The same $100K balance amortized over 20 years at an example 7.25% = ~$790/month.

Variable rate caveat: Most HELOCs are variable-rate loans tied to prime + a margin. If prime moves, your payment moves. The calculator assumes the rate you enter holds for the full life of the loan — useful for planning, but real payments will vary.