HELOC Calculator — Home Equity Line of Credit
Estimate monthly payments and total interest for a Home Equity Line of Credit. Model the draw period, repayment period, and what happens when rates change.
How to calculate HELOC payments and interest
- Enter home value and mortgage balance. Plug in your home appraisal value and outstanding first-mortgage balance to compute available equity (typically 80–85% CLTV).
- Set HELOC limit and APR. Enter the credit line you qualify for plus the variable APR (e.g. Prime + 0.5%).
- Choose draw and repayment terms. Standard: 10-year interest-only draw, then 20-year fully amortizing repayment.
- Read the schedule. See monthly payments during draw vs repayment, total interest over the loan life, and a year-by-year schedule.
Frequently Asked Questions
- Is my financial data stored?
- No. Calculations run in your browser. No data is sent to a server.
- How is a HELOC different from a home equity loan?
- A HELOC is a revolving line you draw against; a home equity loan is a lump-sum loan with fixed payments. HELOCs typically have variable rates.
- What is the typical HELOC term?
- 10-year draw period (interest-only payments) followed by a 20-year repayment period (principal + interest).
- Why does my payment jump after the draw period?
- During draw you only pay interest. Once repayment starts, you pay down principal — often a 2–3× monthly payment increase. The calculator highlights this transition.
- How are taxes handled?
- HELOC interest may be tax-deductible if used for home improvements (US, post-2017). This calculator does not estimate tax impact — consult a CPA.
- What is CLTV?
- Combined Loan-to-Value: (first mortgage + HELOC) ÷ home value. Most lenders cap CLTV at 80–85%.
Use Cases
- Estimate HELOC payments before applying
- Model the payment jump from draw to repayment period
- Compare HELOC vs cash-out refinance scenarios
- Plan a kitchen remodel funded by home equity
- Stress-test affordability if APR rises 2–3 points