A HELOC has two phases: the draw period (interest-only, ~10 years) and repayment period (principal + interest, ~20 years)
HELOC rates are variable — tied to the prime rate + lender margin. Rate rises when Fed raises rates
Borrow up to 85% of home value minus your outstanding mortgage balance
Interest may be tax deductible if used for home improvements (consult a tax advisor)
HELOCs are revolving credit — draw, repay, and draw again during the draw period
HELOC Calculator
Calculate your HELOC (Home Equity Line of Credit) payments for both the draw period and repayment period. See your interest-only draw payment and full principal + interest repayment payment side by side — including a payment shock warning so you know what to expect when the draw period ends.
HELOC Payment Calculator
📅 DRAW PERIOD
Interest-only monthly payment
$0
📈 REPAYMENT PERIOD
Principal + interest monthly
$0
Max HELOC Available
$0
Total Draw Interest
$0
Total Repayment Interest
$0
⚠️ Payment Shock Warning:
function cH(){
var hv=parseFloat(document.getElementById(‘hv’).value)||0,hm=parseFloat(document.getElementById(‘hm’).value)||0,ha=parseFloat(document.getElementById(‘ha’).value)||0,hr=parseFloat(document.getElementById(‘hr’).value)||8.5,hd=parseInt(document.getElementById(‘hd’).value)||10,hre=parseInt(document.getElementById(‘hre’).value)||20;
var mr=hr/100/12,maxH=(hv*0.85)-hm,dp=ha*mr,di=dp*hd*12,n=hre*12,rp=ha*(mr*Math.pow(1+mr,n))/(Math.pow(1+mr,n)-1),ri=(rp*n)-ha,sh=rp-dp;
var f=function(v){return ‘$’+v.toFixed(0).replace(/B(?=(d{3})+(?!d))/g,’,’);};
document.getElementById(‘hdp’).textContent=f(dp);document.getElementById(‘hdy’).textContent=’For ‘+hd+’ years’;
document.getElementById(‘hrp’).textContent=f(rp);document.getElementById(‘hry’).textContent=’For ‘+hre+’ years’;
document.getElementById(‘hmx’).textContent=f(Math.max(0,maxH));document.getElementById(‘hdi’).textContent=f(di);document.getElementById(‘hri’).textContent=f(ri);
document.getElementById(‘hsh’).textContent=’Your payment increases by ‘+f(sh)+’ when the draw period ends. Budget for this before taking out a HELOC.’;
document.getElementById(‘hres’).style.display=’block’;
}
Draw Period vs. Repayment Period Explained
📅 Draw Period (Years 1–10)
Access funds up to your credit limit
Pay interest only on amount drawn
Low, flexible payments
Balance stays unless you pay principal
Rate adjusts with prime rate
📈 Repayment Period (Years 11–30)
No more draws allowed
Pay principal + interest on full balance
Payment can double or triple
Balance decreases each month
Rate still variable
Frequently Asked Questions — HELOC
What is a HELOC?
A HELOC (Home Equity Line of Credit) is a revolving credit line secured by your home’s equity. You can borrow, repay, and borrow again during the draw period — like a credit card backed by your home.
How much can I borrow with a HELOC?
Up to 85% of your home’s value minus your outstanding mortgage. On a $400K home with $250K mortgage: ($400K × 85%) − $250K = $90,000 maximum available.
What happens when the draw period ends?
Your payment switches from interest-only to full principal + interest. This often causes payment shock — payments can double or triple. Always budget for this before opening a HELOC.
Is HELOC interest tax deductible?
Only if funds are used to buy, build, or substantially improve the home securing the loan. Using HELOC funds for other purposes makes interest generally non-deductible. Consult a tax professional.
Is a HELOC rate fixed or variable?
Almost always variable, tied to the prime rate plus a lender margin. When the Fed raises rates, your HELOC payment rises. Some lenders allow converting part of the balance to a fixed rate.
HELOC vs. home equity loan — which is better?
HELOC = flexible revolving credit, variable rate — ideal for ongoing renovation projects. Home equity loan = lump sum, fixed rate — better for one-time large purchases where you want predictable payments.
Can a lender freeze my HELOC?
Yes. Lenders can freeze or reduce your HELOC if home values drop, credit deteriorates, or financial circumstances change significantly. Never rely on a HELOC as your only emergency fund.
What credit score do I need for a HELOC?
Most lenders require 620–680 minimum. Best rates go to 720+ borrowers. Lenders also consider DTI ratio and combined loan-to-value (CLTV) ratio.
{“@context”:”https://schema.org”,”@graph”:[{“@type”:”WebApplication”,”name”:”HELOC Calculator”,”url”:”https://loanmeterusa.com/heloc-calculator/”,”description”:”Free HELOC calculator — calculate draw period and repayment period payments with payment shock warning.”,”applicationCategory”:”FinanceApplication”,”operatingSystem”:”Web”,”offers”:{“@type”:”Offer”,”price”:”0″,”priceCurrency”:”USD”}},{“@type”:”FAQPage”,”mainEntity”:[{“@type”:”Question”,”name”:”What is a HELOC?”,”acceptedAnswer”:{“@type”:”Answer”,”text”:”A revolving credit line secured by home equity. Borrow, repay, and borrow again during the draw period.”}},{“@type”:”Question”,”name”:”How much can I borrow with a HELOC?”,”acceptedAnswer”:{“@type”:”Answer”,”text”:”Up to 85% of home value minus mortgage balance. $400K home with $250K mortgage = $90K maximum HELOC.”}},{“@type”:”Question”,”name”:”What happens when the draw period ends?”,”acceptedAnswer”:{“@type”:”Answer”,”text”:”Payment switches from interest-only to full principal + interest. Payments can double or triple — budget for this in advance.”}},{“@type”:”Question”,”name”:”Is HELOC interest tax deductible?”,”acceptedAnswer”:{“@type”:”Answer”,”text”:”Only if funds are used to buy, build, or substantially improve the home securing the loan.”}},{“@type”:”Question”,”name”:”Is a HELOC rate fixed or variable?”,”acceptedAnswer”:{“@type”:”Answer”,”text”:”Almost always variable, tied to the prime rate plus a lender margin. Payment rises when the Fed raises rates.”}}]}]}
This HELOC calculator estimates your monthly interest-only payment during the draw period and your fully amortized payment during the repayment period. A Home Equity Line of Credit (HELOC) works like a credit card secured by your home — you borrow as needed up to your credit limit. Use this HELOC calculator to understand both what you’ll pay now (interest-only) and what you’ll owe later when principal repayment begins.
HELOC Rates and How They Work in 2026
HELOC rates are variable, typically tied to the Prime Rate plus a margin. In 2026, HELOC rates range from approximately 7.5% to 12% depending on your credit score and loan-to-value ratio. Because rates are variable, your HELOC calculator payment can change monthly. The CFPB recommends understanding the maximum rate your HELOC can reach — most have a lifetime cap of 18%. Use this HELOC calculator to stress-test payments at both current and maximum rates.
Frequently Asked Questions — HELOC Calculator
What is the difference between a HELOC and a home equity loan?
A HELOC is a revolving line of credit with a variable rate. A home equity loan is a lump-sum fixed-rate loan. Use this HELOC calculator for the revolving line scenario. If you want a fixed lump sum, our mortgage calculator can model a home equity loan with your specific amount and rate.
How much of my home equity can I borrow with a HELOC?
Most lenders allow you to borrow up to 85% of your home’s value minus your mortgage balance. For example, a home worth $400,000 with a $250,000 mortgage gives you up to $90,000 in HELOC availability. Enter this as your credit limit in the HELOC calculator to see your payment scenarios.
What happens when a HELOC draw period ends?
After the draw period (typically 10 years), your HELOC enters a repayment period (usually 20 years) where you must pay both principal and interest. This HELOC calculator shows both phases — many borrowers are surprised by the payment increase at repayment. See all tools at our Mortgage Calculator Hub.
📎 Embed This Calculator Free
Running a finance blog or real estate site? Add this HELOC Calculator to your site for free. Just keep the attribution link below the widget.
Click the box to select all · Copy & paste into your site's HTML editor