HELOC Calculator
Compare interest-only draw payments with repayment-period payments. Explore a different repayment rate and optional extra principal.
This scenario assumes one initial draw, no later borrowing, and a constant rate within each phase. It does not forecast variable interest rates.
Your estimate
Payment schedule
| Period | Phase | Principal* | Interest | Account fees | Outflow | Balance |
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Understanding the two HELOC phases
A HELOC is a line of credit secured by your home. Borrowing is available during a draw period, followed by a repayment period. Rates are usually variable, and payments can rise. Because your home secures the debt, failing to repay can put it at risk. Read the CFPB explanation.
How this model calculates payments
During the draw phase, interest equals the opening balance multiplied by the annual rate divided by 12. Only optional extra principal reduces that balance. At repayment, the remaining balance is amortized over the repayment months using the selected repayment rate.
For example, a 50,000 balance at 8% creates an initial interest-only payment of 333.33 before fees. Without principal reduction, repayment over 15 years at the same rate is approximately 477.83 per month.
Explore payment changes
Select a different repayment rate to explore one possible change. Extra principal during the draw period reduces the balance entering repayment. Extra principal during repayment can shorten the modeled payoff time. These results do not predict future rates or later borrowing.
Can I model future withdrawals?
This version models one initial draw only. It does not include later withdrawals, reborrowing, or credit-limit changes. Enter a representative initial balance and compare scenarios separately.
What happens to the closing fees?
When paid in cash, closing fees are a separate upfront expense. When deducted, they reduce the cash you receive without reducing the debt. Neither option adds fees to the loan balance. Total borrowing cost includes interest, account fees and closing fees once.
Why might my lender’s minimum payment differ?
Lenders may use daily interest, minimum payment floors, principal requirements, different fee dates, balloons or changing rates. This model uses monthly interest, full interest payment during the draw phase and fully amortizing repayment. It does not calculate APR.
How is early payoff handled?
The model stops at a zero balance and assumes no further draws or account fees. Paying a HELOC balance to zero does not necessarily close the account in real life; verify closure rules and any early-termination charges.
What does this leave out?
Existing mortgage payments, property taxes, insurance, tax deductions, appraisal and lender qualification are excluded. Rates remain constant inside each phase, and calculations keep full precision until display.