Loading…
Calculate HELOC payments from credit line, rate and draw period — see monthly payment and total interest.
Calculate HELOC payments from credit line, rate and draw period — see monthly payment and total interest.
Enter values above and click Calculate — results will appear here with the formula explained.
A HELOC splits life into two phases: a ~10-year draw period (interest-only minimums on what you use, revolving like a giant credit card) followed by a 10–20 year repayment period amortizing the balance. This calculator models the repayment phase: $30,000 drawn at 8.5% over 10 years runs about $368/month with ~$14,200 lifetime interest.
Variable rates define HELOC risk: pricing tracks prime plus 1–2% margin, adjusting monthly with lifetime caps (often 18%) and periodic caps (~2%/year). A 8.5% HELOC can legally reach 10.5% within a year of Fed hikes — stress-test every scenario at +2–3% before signing, because the historical record shows it happens.
HELOC versus home-equity loan versus cash-out refi: HELOC wins for phased draws over years (pay interest only on used funds); closed-end seconds win for single lump needs with fixed-payment certainty; cash-out refi wins only when current first-mortgage rates beat your existing rate. Mismatching product to need is the costliest HELOC mistake.
Qualification mirrors seconds: combined LTV usually capped 80–85%, DTI under 43–45%, decent credit for prime-plus pricing. Appraisal (often drive-by or AVM, sometimes full), early-termination fees ($0–500 if closed within 2–3 years), annual fees ($50–75) and inactivity minimums all hide in disclosures — read the Schumer-box equivalents, not the headline rate.
The revolving trap: interest-only minimums during draw let balances persist indefinitely while homes secure them — converting unsecured spending into foreclosure risk. Borrowers who treat HELOCs as income (boats, vacations) releverage cyclically; disciplined uses are value-adding renovations, bridge financing with defined exits, and emergency backstops left mostly untapped.
Tax treatment narrowed post-2017: interest is deductible only when proceeds buy, build or substantially improve the securing home (not for cars, tuition or debt consolidation), within mortgage-debt limits. Track use-of-proceeds meticulously; commingled draws lose deductibility proportionally.
Calculate HELOC payments from credit line, rate and draw period — see monthly payment and total interest. Formula: Payment = draw*r*(1+r)^n/((1+r)^n-1) where r=rate/12, n=years*12. Example: With $50k line, 8.5% rate, $30k drawn, 10-year repayment: ~$368/month, ~$14,200 interest.
A HELOC splits life into two phases: a ~10-year draw period (interest-only minimums on what you use, revolving like a giant credit card) followed by a 10–20 year repayment period amortizing the balance. This calculator models the repayment phase: $30,000 drawn at 8.5% over 10 years runs about $368/month with ~$14,200 lifetime interest.
Variable rates define HELOC risk: pricing tracks prime plus 1–2% margin, adjusting monthly with lifetime caps (often 18%) and periodic caps (~2%/year). A 8.5% HELOC can legally reach 10.5% within a year of Fed hikes — stress-test every scenario at +2–3% before signing, because the historical record shows it happens.
HELOC versus home-equity loan versus cash-out refi: HELOC wins for phased draws over years (pay interest only on used funds); closed-end seconds win for single lump needs with fixed-payment certainty; cash-out refi wins only when current first-mortgage rates beat your existing rate. Mismatching product to need is the costliest HELOC mistake.
Qualification mirrors seconds: combined LTV usually capped 80–85%, DTI under 43–45%, decent credit for prime-plus pricing. Appraisal (often drive-by or AVM, sometimes full), early-termination fees ($0–500 if closed within 2–3 years), annual fees ($50–75) and inactivity minimums all hide in disclosures — read the Schumer-box equivalents, not the headline rate.
The revolving trap: interest-only minimums during draw let balances persist indefinitely while homes secure them — converting unsecured spending into foreclosure risk. Borrowers who treat HELOCs as income (boats, vacations) releverage cyclically; disciplined uses are value-adding renovations, bridge financing with defined exits, and emergency backstops left mostly untapped.
Tax treatment narrowed post-2017: interest is deductible only when proceeds buy, build or substantially improve the securing home (not for cars, tuition or debt consolidation), within mortgage-debt limits. Track use-of-proceeds meticulously; commingled draws lose deductibility proportionally.
With $50k line, 8.5% rate, $30k drawn, 10-year repayment: ~$368/month, ~$14,200 interest. If prime pushes the rate to 10.5%, payment rises to ~$397 — $29 monthly and $3,500 lifetime more for the same $30,000.
Formulas are standard public references (see our methodology). External standards are cited in the text where they apply.
Last reviewed: September 2026 · Report an error