HELOC Calculator
Enter your home value, mortgage balance and draw. In the default example the interest-only payment is $354.17 during the draw period, rising to $433.91 in repayment, with $90,000.00 of equity available.
How the HELOC calculator works
A home equity line of credit lets you borrow against your home as needed, up to a limit. Most HELOCs have two phases. During the draw period you can borrow, and many plans only require interest on what you have drawn. When the draw period ends you can no longer borrow and the balance is repaid over a set schedule, so the payment usually jumps. The Consumer Financial Protection Bureau notes that payments are often much higher once repayment begins.
This calculator shows both payments side by side and estimates how much you could borrow. Lenders set their own maximum combined loan-to-value (CLTV), often around 85 percent, so change that field to match your lender.
The formulas
B is the balance at the end of the draw period, i is the monthly rate and N is the number of monthly payments in the repayment period.
Example: This is an illustration, not an offer. A home worth $400,000 with a $250,000 mortgage and an 85 percent CLTV limit leaves $90,000.00 of available equity. Drawing $50,000 at 8.50 percent costs $354.17 a month, interest only, then $433.91 a month once repayment starts. Combined LTV after the draw is 75%. Total interest across both phases is $96,638.79.
Limits of the estimate
- Most HELOC rates are variable, so real payments will move with the rate. This tool holds the rate fixed.
- It assumes the whole draw is taken on day one and no more is borrowed or repaid early.
- Fees, annual charges and minimum draw rules are not included.
- Your home secures the line. If you cannot repay as agreed, you could lose the home.
To see what a mortgage costs on its own, use the mortgage payoff calculator.
This calculator is for general information and is not financial, tax or legal advice.
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Frequently asked questions
What is the difference between the draw period and repayment period?
In the draw period you can borrow and may pay only interest. In the repayment period you can no longer borrow and you repay principal and interest. The default example moves from $354.17 to $433.91 a month.
How is available HELOC equity calculated?
Multiply your home value by the lender maximum CLTV, then subtract what you owe on the mortgage. The default example gives $90,000.00.
Why does the payment jump after the draw period?
Because principal repayment begins. Interest-only payments never reduce the balance, so the full balance must then be repaid over the remaining term.
Is HELOC interest fixed?
Usually variable, so payments can change. Some lenders allow you to fix part of the balance. Ask for the terms before you sign.
What CLTV do lenders allow?
It varies by lender and borrower. 85 percent is a common example, but check with your own lender.
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