HELOC Payment Calculator
Calculate monthly payments for a Home Equity Line of Credit during draw and repayment periods. Model variable rate scenarios.
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HELOC: How It Works
A HELOC is a revolving credit line secured by your home equity. It has two phases: a draw period (typically 5-10 years) where you can borrow up to your limit and make interest-only payments, and a repayment period (10-20 years) where you pay principal plus interest on the outstanding balance. Average HELOC rates are currently 8-9.5%, tied to the prime rate.
The payment shock from draw to repayment period catches many homeowners off guard. On a $50,000 balance at 8.5%: interest-only payments are $354/month during the draw period, but jump to $434/month when repayment begins — a 23% increase. On larger balances, the jump can be thousands. Always calculate both phases before borrowing. Check your overall debt load with our DTI Calculator.
HELOC vs Home Equity Loan
HELOC: Variable rate, revolving credit line, borrow as needed, interest-only draw period. Best for: ongoing projects, emergency access, uncertain borrowing needs. Home equity loan: Fixed rate, lump sum, equal monthly payments from day one. Best for: one-time large expenses (renovation, debt consolidation) where you want payment predictability.
Both require sufficient home equity — lenders typically allow borrowing up to 80-85% of your home value minus your mortgage balance. Use our Home Equity Calculator to check your available equity, and our LTV Calculator to see where you stand.