The HELOC calculator that shows you the full lifecycle — not just the teaser.
Your numbers
Your results
Balance over time
What happens when the draw period ends
Your minimum payment can jump the moment you enter repayment. This is the number lenders rarely put in front of you.
Monthly payment: draw vs. repayment
Balance over time Show extra-payment scenario
Base scenario
- Payoff time
- 30 yrs
- Total interest
- $72,304
- Peak monthly payment
- $334.60
With extra payments
- Payoff time
- —
- Total interest
- —
- Peak monthly payment
- —
Full amortization: Every month, line by line
See exactly how each payment splits between principal and interest across the life of the line.
| Period | Payment | Principal | Interest | Balance |
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What is a HELOC Calculator and how does it work?
What is a HELOC?
A home equity line of credit is a line of credit that is secured by your home. Just like a credit card, you go up to your limit, take what you need when you need it, and only pay for the amount you use — the interest only on that.
Draw period
Typically 5–10 years. Up to the limit you can borrow, repay and borrow again. Minimum payments are typically only interest payments, and that means they are low — but you don’t pay down anything.
Repayment period
Typically 10–20 years. The line is frozen and principal and interest must be paid. Payment shock is the big leap in your payment overnight.
Variable rates
The majority of HELOCs will have a rate which fluctuates with the prime rate. Once Prime moves your payment moves. Some lenders will provide a fixed-rate option as some certainty for a portion of the loan.
Typical lender qualification checklist
✓ A minimum of 15-20% Equity in your home.
✓ Good credit score – 640 and up (some lenders 600 and up).
✓ Debt-to-income ratio of 43% or less.
✓ Combined LTV within the lender’s limit (usually 80-85%)
✓ Recent appraisal or valuation.
The following are some smart uses for a HELOC.
✓ Home repairs which increase its worth
✓ Consolidating higher-interest debt
✓ Other expenses that are expected to be incurred (car, clothing, rent)
✗ Everyday spending or discretionary purchases
✗ As a substitute for an emergency fund
Related Tools
FAQs
What is a HELOC?
A home equity line of credit (HELOC) is a line of credit that is backed by your house. During the draw period, you can withdraw money up to the limit of credit as you need them and interest only is charged on the amount withdrawn.
What’s the difference between the draw period and repayment period?
The draw period (usually 5-10 years) allows you to borrow as much as you can up to that limit and make interest-only minimum payments. In the repayment period (usually 10 to 20 years) you are no longer allowed to use the money and will have to pay back the principal plus the interest, often resulting in a huge shock to your payment.
How much may I take out on a HELOC?
Most lenders will offer a loan of up to 80% to 85% of the value of your home, minus the amount left on your mortgage. For instance, if you were to borrow $400,000 for a home, with $200,000 of that being a mortgage, at 85% combined loan-to-value ratio, you could take out a maximum HELOC of roughly $140,000.
Can I deduct the interest on my HELOC?
Now, under the IRS’s present regulations, the interest from a HELOC is deductible as long as the funds are utilized to purchase, construct or significantly improve the home used as security for the loan. Generally, interest paid on other funds is not deductible. Talk to a tax advisor about your situation.
What is payment shock on a HELOC?
It is the amount of increase in the payment that occurs when the draw term ends and the principal and interest payment term begins, this is called payment shock. A lot of borrowers have their payment increase by hundreds of dollars, just one day.
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