🏠 Finance
HELOC Calculator
Use this free heloc calculator to get fast, accurate results.
📝 Your Assumptions
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A HELOC calculator turns your line of credit into a predictable monthly payment so you can see exactly what you'll owe. Enter your draw amount, rate, and term to get your monthly payment, total interest, and total cost. It's built for homeowners comparing a HELOC against a cash-out refinance or a standard home equity loan.
How to Use This Calculator
Plug in your three numbers and the calculator does the amortization instantly.
1
Enter Your Draw Amount
Type the amount you plan to borrow from your credit line, like $50,000 for a kitchen remodel. If your HELOC limit is $100,000, you can enter any amount up to that limit. This is the principal the amortization math runs on.
2
Add Your Interest Rate
Enter the annual percentage rate your lender quoted, such as 8.5%. HELOC rates are usually variable and tied to the prime rate, so your quoted rate today may change. Use the current rate for a snapshot payment.
3
Choose Your Loan Term
Select the repayment period in years, like 10, 15, or 20. A shorter term raises the monthly payment but slashes total interest. A 15-year term on $50,000 at 8.5% pays about $492 monthly.
4
Read the Monthly Payment
The calculator shows your principal-and-interest payment, for example $492 on $50,000 at 8.5% over 15 years. This does not include property taxes, insurance, or HELOC fees. Compare it to your budget before you draw.
5
Compare Total Interest
Check the total interest figure to see the real cost of the term you picked. On $50,000 at 8.5% for 15 years, total interest is roughly $38,600. Run a 10-year term to see how much you save.
What Your Results Mean
Each output tells you something different about the cost of your credit line.
Monthly Payment
This is the principal-and-interest amount due each month during repayment. On a $50,000 draw at 8.5% over 15 years, it's about $492. Your actual bill may be higher if your lender escrows taxes or insurance.
Total Interest
This is the sum of all interest paid over the life of the loan. A $50,000 HELOC at 8.5% for 15 years costs roughly $38,600 in interest. Stretching to 20 years pushes that past $54,000.
Total Paid
Total paid equals your draw amount plus total interest. The $50,000 example at 8.5% over 15 years totals about $88,600. It's the full out-of-pocket cost if you never make extra payments.
Draw Period vs Repayment
Most HELOCs have a 10-year draw period where you pay interest only, then a 20-year repayment period. During the draw, a $50,000 balance at 8.5% costs about $354 per month in interest alone. The calculator models the repayment phase.
Variable Rate Risk
HELOC rates move with the prime rate, so your payment can change. If the rate jumps from 8.5% to 10.5% on a $50,000, 15-year balance, the payment rises from about $492 to $553. Budget for that swing.
Interest-Only Payments
If your HELOC is interest-only during the draw period, your payment covers no principal. Paying $492 instead of $354 on a $50,000 balance at 8.5% cuts years off the loan. The calculator assumes full amortization.
Key Terms
HELOC
A home equity line of credit lets you borrow against your home's equity as needed, up to a limit, similar to a credit card. You pay interest only on what you draw.
Draw Period
The initial years, often 10, when you can pull money from the line. Payments during this phase are frequently interest-only.
Repayment Period
The years after the draw period when you repay principal and interest. It typically runs 10 to 20 years.
Prime Rate
The benchmark banks use to set HELOC rates, currently around 8.5%. Your rate is usually prime plus a margin, like prime + 0.5%.
Amortization
The schedule of payments that gradually pays off principal and interest. Early payments are mostly interest; later ones are mostly principal.
❓ Frequently Asked Questions
Most HELOCs are priced at the prime rate plus a margin. With prime at 8.5%, a homeowner with good credit might get 8.5% to 9.5%, while someone with a 680 score could pay 10% or more. On a $50,000 draw at 8.5% over 15 years, the monthly payment is about $492 and total interest is roughly $38,600. At 10.5%, the same loan costs about $553 monthly and $49,500 in interest — a difference of over $10,000. Rates are variable, so they can rise after you close. If you want a fixed rate, compare a home equity loan or a cash-out refinance using our mortgage calculator.
The calculator uses the standard amortization formula: M = P × [r(1+r)^n] / [(1+r)^n − 1], where P is your draw amount, r is the monthly rate, and n is the number of payments. For a $50,000 draw at 8.5% over 15 years, r is 0.007083 and n is 180, giving a payment of about $492. Multiply that by 180 payments and you get $88,600 total paid, or $38,600 in interest. If your HELOC is interest-only during the draw period, your payment is just P × r, about $354 monthly on $50,000. Switch to a full amortization schedule when the repayment period starts, or use our loan calculator to model both phases.
It depends on how much you borrow and whether you want to touch your first mortgage. A HELOC keeps your existing low-rate mortgage intact and only adds a second lien. If you have a $300,000 mortgage at 3.5% and need $50,000, a cash-out refinance at today's 6.5% would reset your entire loan to a higher rate, raising your payment from $1,347 to $1,896 on a 30-year term. A HELOC at 8.5% over 15 years adds just $492 monthly. Cash-out can make sense if you're refinancing anyway or want one fixed payment. Run both scenarios in our mortgage calculator to see the lifetime cost difference.
Your payment can jump sharply because you start repaying principal. During a 10-year interest-only draw on $50,000 at 8.5%, you pay about $354 monthly. When the 20-year repayment period begins, the payment rises to roughly $434 — a 23% increase. If you drew the full $100,000 limit, the interest-only payment is $708 and the fully amortizing payment is $868. Some lenders offer a balloon payment at the end instead, meaning you owe the entire balance at once. Ask your lender which structure applies, and plug the repayment term into this HELOC calculator to see the exact monthly figure.
Most lenders cap your total home-secured debt at 80% to 85% of your home's appraised value. If your home is worth $400,000 and you owe $250,000 on your first mortgage, your available equity at 80% is $70,000 ($320,000 cap minus $250,000 owed). At 85%, it's $90,000. Lenders also weigh your credit score, income, and debt-to-income ratio, typically requiring a DTI below 43%. On a $70,000 draw at 8.5% over 15 years, the payment is about $689 monthly. Before you apply, check your numbers with our mortgage calculator to confirm your first-lien balance and equity position.
Yes, because HELOC interest is calculated on the outstanding balance daily, so extra payments cut interest immediately. On a $50,000 balance at 8.5% over 15 years, adding $100 to the $492 monthly payment pays off the loan about 2.5 years early and saves roughly $7,800 in interest. Adding $250 monthly cuts nearly 5 years and saves about $14,500. There's usually no prepayment penalty on a HELOC, unlike some fixed home equity loans. If your goal is to eliminate the balance fast, prioritize the HELOC over lower-rate debt. Use our auto loan calculator to compare whether paying off a 7% car loan first saves you more.
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