HELOC Calculator — Draw & Repayment Payments
A home equity line of credit charges two very different payments: small interest-only payments while you draw, then full principal-and-interest payments when repayment starts.
Your line of credit
Advanced options — closing costs, annual fee, extra principal, later draws & borrowing power
How much could you borrow?
Lenders cap your mortgage plus HELOC limit at a combined loan-to-value (CLTV) percentage of your home value.
Closing costs, the annual fee, extra principal, later draws and the borrowing-power panel are already included in the result with their default values — open Advanced options to change them.
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Your two payments
- A HELOC charges two payments: interest-only during the draw period — $354.17 a month on $50,000 drawn at 8.5% — then principal-and-interest payments of $433.91 a month once repayment starts.
- Across the whole line at the defaults, interest totals $96,638.79: $42,500.00 during the 10-year draw period and $54,138.79 during the 20-year repayment period.
- Lenders cap your mortgage plus HELOC limit at a combined loan-to-value: at 80% of a $500,000 home with a $300,000 mortgage, the maximum line is $100,000.
Year-by-year schedule
Every year of the line, across both phases — what you pay, how much of it is interest, and the balance left at each year end. Closing costs and the annual fee are not in the payments column; they are totalled in the results above.
| Year | Phase | Payments | Interest | Principal | Balance at year end |
|---|
If the rate rises
A HELOC rate is variable, so here is the same plan — your draws and extra principal unchanged — re-run at a higher APR for the whole life of the line.
| Scenario | Draw payment (first month) | Repayment payment | Total interest |
|---|
A real variable rate rarely jumps once and stays put — treat these rows as a stress test of the draw size, not a forecast.
Two payments, one line of credit
Bar width follows each phase’s length; bar height follows the payment. The jump between them is the moment most borrowers underestimate.
Keep exploring
Three companion tools for borrowing against your home.
How it works
Three steps from credit limit to both payments.
Enter the line and the draw
Your approved credit limit and the amount you actually plan to borrow against it.
Set the rate and the clock
Your variable APR, how long the interest-only draw period runs, and the repayment term after it.
Compare both payments
The interest-only payment now, the amortizing payment later, and the interest each phase costs.
The math behind a HELOC
During the draw period you owe interest only: each month you pay the drawn balance times one month of the APR, and the balance itself does not shrink. When the draw ends, the balance converts into a plain amortizing loan over the repayment period — the same formula as any fixed loan.
Worked example — the default numbers above ($50,000 drawn at 8.5%, 10-year draw, 20-year repayment):
| Piece | Calculation | Result |
|---|---|---|
| Draw payment (monthly) | $50,000 × 8.5% ÷ 12 | $354.17 |
| Interest over the draw | $354.17 × 120 months | $42,500.00 |
| Repayment payment (monthly) | $50,000 amortized over 240 months at 8.5% | $433.91 |
| Interest over repayment | $433.91 × 240 − $50,000 | $54,138.79 |
| Total interest, whole line | $42,500.00 + $54,138.79 | $96,638.79 |
Go deeper
The two surprises built into almost every HELOC.
The repayment cliff: why the second payment shocks people
Interest-only payments feel comfortable because they never touch the principal. Then the draw period ends and the same balance must be repaid in full:
- Default example: the payment rises from $354.17 to $433.91 — about 22% more, every month, for 20 years.
- Bigger draws, bigger cliff: the jump grows with the balance and shrinks with a longer repayment term — try a 30-year repayment above to see the trade-off (a lower payment, but far more interest).
- The defense: pay extra principal voluntarily during the draw period. Every $1,000 you repay early cuts both the interest-only payment now and the repayment payment later. The calculator models it: set Extra principal during draw in Advanced options and watch the balance that reaches repayment fall.
- Budget rule: if the repayment payment would strain your budget, the draw is too big — decide with the second number, not the first.
Variable rates: your APR will move
Unlike a fixed-rate loan, a HELOC’s price is not set on the day you sign:
- How it works: your APR is usually the prime rate plus a fixed margin, recalculated as the prime rate moves — it can change any month.
- What a rise costs: on a $50,000 draw, every 1% the rate climbs adds about $41.67 a month to the interest-only payment (2% adds about $83.33).
- In your numbers: the If the rate rises table above re-runs your own draws at +1% and +2%, so you can see both payments and the total interest at each level.
- Rate caps: most HELOCs carry a lifetime cap, often around 18% — check yours before you draw, not after.
- Fixed-rate options: some lenders let you lock a portion of the balance at a fixed rate. If rising rates would hurt, ask about it before you need it.
The revolving line, in full
What a home equity line of credit actually is: a limit you draw from, not a loan you receive.
A HELOC is a revolving line of credit secured by your home. The lender approves a credit limit — set by your equity and the lender’s loan-to-value cap — and you draw only what you need, when you need it. During the draw period you may draw, repay, and draw again, and the required payment is interest only on the balance currently drawn. When the draw period ends, the line closes to new borrowing and the remaining balance is repaid in fixed amortizing installments over the repayment period. Nothing about the calculator above has changed — this section is a guide to reading its two payments.
| Phase | Required payment | What happens to the balance |
|---|---|---|
| Draw period | Interest only on the drawn balance | Unchanged, except for voluntary principal you choose to pay |
| Repayment period | Full amortizing payment (principal plus interest) | Falls to $0 by the end of the term |
On the default example above — $50,000 drawn at 8.5%, a 10-year draw, a 20-year repayment — the draw payment is $354.17 a month and the repayment payment is $433.91 a month, about 22% more. If no voluntary principal is paid during the draw, the whole line costs $96,638.79 of interest on a $50,000 draw. Paying extra principal during the draw years is the single most effective way to cut both later figures: every $1,000 repaid early cuts the interest-only payment now and the repayment payment later.
Two cautions belong with any revolving line. First, the rate is usually variable — prime plus a margin — so both payments can rise if prime rises; check your lifetime cap before you draw, not after. Second, decide the size of the draw by the repayment payment, not the interest-only payment, because the repayment payment is the one you will live with longest.
Guides for this page: HELOC and Home Equity Loan Rates Explained: Prime + Margin vs Fixed Rates · How to Calculate Home Equity (and How Much You Can Borrow Against It) · HELOC vs Home Equity Loan: Which One Fits Your Need? · HELOC Payments Explained: Draw Period, Repayment Period, and Interest-Only Payments · HELOC Requirements: LTV, Credit, Income, Fees, and How to Apply.
The lump-sum alternative is the Home Equity Loan Calculator: one fixed amount, one fixed payment, no draw period. If your cost is a single known amount, compare it before you choose the line.
Payoff, freezes and later draws
What happens after the draw period, and what can change mid-line.
During the draw period you can draw, repay and draw again up to your credit limit, and your payment is usually interest-only on the balance drawn: on $50,000 drawn at an illustrative 8%, that is $333.33 a month, or about $10.96 a day. When the draw period ends, new draws stop and the repayment period begins, with principal and interest together — the payment jump this page calls the repayment cliff. A lender can also freeze or reduce a line in defined circumstances, such as a fall in the home’s value, missed payments, or a breach of the agreement’s terms, so read the agreement for the exact triggers rather than assuming the limit is permanent. Paying the line down does not close it: to close a HELOC, repay the balance in full and ask the lender to close the account and release the lien, confirming both in writing. Until the draw period ends, a balance you repay is borrowing room you can use again — which is the flexibility of a revolving line, and also the reason the balance needs watching.
Frequently asked questions
Quick answers about HELOC payments.
What is a HELOC?
A home equity line of credit is a revolving credit line secured by the equity in your home. You draw money as needed during the draw period — usually 5 to 15 years — then repay the balance over a longer repayment period, much like a credit card backed by your house.
How is the draw-period payment calculated?
It is interest only: the drawn balance multiplied by the APR, divided by 12. Borrow $50,000 at 8.5% and the monthly payment is $50,000 × 8.5% ÷ 12 = $354.17. None of it reduces what you owe.
What happens when the draw period ends?
You can no longer borrow against the line, and the outstanding balance converts to an amortizing loan over the repayment period. The payment rises because it must now cover principal as well as interest — on the default example here, from $354.17 to $433.91 a month.
Is a HELOC rate fixed or variable?
Usually variable. Most HELOCs price at the prime rate plus a margin, so your APR — and your payment — can move up or down any month. Some lenders offer a fixed-rate lock on part of the balance; a lifetime rate cap limits how high the variable rate can go.
How much can I borrow on a HELOC?
Most lenders cap the combined loan-to-value — your mortgage plus the HELOC limit — at 80% to 85% of the home’s value. On a $500,000 home with a $300,000 mortgage, that points to a limit of roughly $100,000 to $125,000, subject to your credit and income.
What is the difference between a HELOC and a home equity loan?
A HELOC is a revolving line you draw from over time, usually at a variable rate, with interest-only payments at first. A home equity loan is a single lump sum at a usually fixed rate, repaid in equal installments from day one. The HELOC is flexible; the loan is predictable.
Can I draw again after paying down my HELOC?
Yes, during the draw period: repaying part of the balance restores that much borrowing room, up to your credit limit, and you can draw it again. Once the draw period ends, new draws stop and the loan moves into repayment. Check your agreement for the exact draw period dates and any minimum draw amount.
Can a lender freeze or reduce my HELOC?
Yes, in circumstances set out in the agreement — commonly a significant fall in the home’s value, missed payments, or a breach of the agreement’s terms. A freeze stops new draws; the existing balance still has to be repaid on the agreed schedule. If a line is frozen or reduced, ask the lender for the reason in writing and what would restore it.
What happens if I miss a draw-period payment?
Expect a late fee under the agreement, a report to the credit bureaus, and interest continuing to accrue on the balance, which can also put the line itself at risk if the agreement treats missed payments as a default trigger. Contact the lender promptly if a payment will be late: an agreed arrangement is better than a silent miss, and the sooner it is raised the more options remain.
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Disclaimer
This calculator is for information only and is not financial advice or a loan offer. It models the draws you enter at a fixed APR; your actual rate is variable and will change, and lenders differ on draw terms, fees, rate caps and repayment rules. A HELOC is secured by your home — missed payments can put the home at risk — so review the lender’s disclosures carefully before borrowing.