Solverly

Home Equity Line of Credit (HELOC) Payment Calculator

Understand how a HELOC behaves across its two phases: an interest-only draw period followed by principal-and-interest repayment. This view highlights how borrowing against your equity affects cash flow now, how payments can change if rates move, and what to expect when the line converts to amortizing payments. It’s helpful when planning renovations, bridging expenses, or comparing a HELOC to a cash-out refinance.

The home equity line of credit payment calculator lets you map a realistic draw and repayment plan—preview monthly costs during the draw, see the step-up after conversion, and explore the impact of extra principal or different rate scenarios. The goal is to avoid payment shock, budget with confidence, and decide whether a revolving line secured by your home fits your timeline and risk tolerance.

Draw vs repayment periods — estimate the interest-only payment during the draw phase and the amortized payment during the repayment phase so we can plan cash flow with confidence.

HELOCs typically have a draw period with interest-only payments, followed by a repayment period with fully amortized payments. Enter your balance, draw APR, repayment APR, and draw length to see both monthly amounts side by side.

Draw Payment (Interest-Only)
—
Repayment Payment (Amortized)
—
Draw months
120
Repayment months (assumed)
240
Balance modeled
$60,000.00

We assume the balance entering repayment equals the modeled balance here (no additional draws or prepayments). Actual HELOCs may vary.

Results interpretation

The Draw Payment is interest-only—principal does not change during draw. The Repayment Payment is a fully amortized monthly amount that pays off the modeled balance over 20 years at the repayment APR. If your lender uses a different repayment length or recalculates from your actual end-of-draw balance, numbers will differ.

How it works

We split the HELOC into two phases: an interest-only draw period and a fixed-length repayment period.

Formulas, assumptions, limitations

Draw payment. Balance × (Draw APR ÷ 12). Principal stays constant during draw.

Repayment term. Assumed fixed at 20 years (industry-typical).

Repayment payment. Standard amortization on the same balance at Repayment APR over the repayment months.

Rates. We treat APRs as fixed per phase. Real HELOCs often vary; your lender may reprice monthly.

Scope. We model principal & interest only—not taxes, insurance, fees, or rate caps/floors.

Balance at transition. Assumed equal to the modeled balance (no new draws or curtailments).

Use cases & examples

Budgeting during renovations

We keep cash flow low during construction with an IO draw, then plan for the higher amortized payment after.

Rate-change sensitivity

We compare draw APR 8.99% vs 10.00% to see how IO changes and the effect of a different repayment APR.

Refi or payoff planning

We estimate the amortized payment to decide whether to refinance the HELOC or roll it into a fixed loan later.

HELOC payment FAQs

Why is the draw payment so low?

It’s interest-only—no principal reduction is required during the draw period.

Will my real HELOC payment change monthly?

Often yes, because HELOC APRs are typically variable and tied to an index plus a margin.

Do you assume a repayment length?

Yes, we assume 20 years. Lenders may use 10–20 years or another schedule.

What balance enters repayment?

We model the same balance you enter. Your actual balance will reflect real draws and payments during draw.

Are taxes/insurance included?

No. We show principal & interest only.

Can I prepay during draw?

Usually yes; extra principal lowers interest and reduces the later amortized payment.

HELOC payments made clear: planning for draw and repayment

Home Equity Lines of Credit (HELOCs) offer flexibility: we can borrow, repay, and borrow again during the draw period. Payments are typically interest-only, which keeps cash flow light. After the draw window closes, the balance converts to a fully amortizing loan. That shift changes the math, and understanding both monthly amounts is the key to a smooth plan.

How lenders structure HELOCs

Many lenders set a 5–10 year draw period with a variable APR, followed by a 10–20 year repayment period. Some reprice the rate monthly; some set floors and caps; some allow interest-only even in repayment. Our calculator uses a straightforward structure—interest-only during draw, then a fixed-length amortization—so we can compare apples to apples.

Budgeting the transition

  • Estimate today’s IO. The draw payment scales linearly with APR and balance.
  • Preview tomorrow’s amortized payment. We assume a standard 20-year payoff at the repayment APR.
  • Stress-test rates. Adjust the APRs to see how sensitive the payments are to rate changes.

Strategies we use

  1. Set aside a “payment jump” fund so the transition to repayment doesn’t pinch the budget.
  2. Make occasional principal curtailments during draw to shrink both interest and the later amortized payment.
  3. Track LTV and appraisal comps if a refinance to a fixed loan is likely.

Limitations to keep in mind

Real HELOCs may recast balances, require interest-plus-minimum-principal payments, or use different repayment terms. Index changes and margins can cause payments to fluctuate. Treat our outputs as estimates and match them to your lender’s specific terms once you have a disclosure.

Putting the numbers to work

Start with your current balance and APRs. If your draw APR and repayment APR are the same, the difference between the two payments comes entirely from adding principal amortization. If the repayment APR is higher, we see a double effect: higher rate and principal reduction. Use these insights to decide whether to accelerate principal during draw or plan a refinance.

Bottom line

With a clear view of both payments, we can schedule projects, time cash reserves, and choose the best path—continue with the HELOC, refinance, or pay down aggressively. The right choice is the one that fits today’s budget and tomorrow’s goals.