HELOC Calculator

See both the easy interest-only payment now, and the bigger amortizing payment that's coming later.

$
Draw period (interest-only)
%
years
Repayment period (amortizing)
%
years
Payment during draw period
$333.33
Payment once repayment starts
$477.83

During the draw period, payments are interest-only — the balance never goes down on its own. Once the repayment period starts, payments jump to a fully amortizing amount that pays off the balance, often a significant increase.

A worked example

Drawing $50,000 at 8% means an interest-only payment of about $333 a month during a 10-year draw period. Once a 15-year repayment period begins at the same rate, the payment jumps to roughly $478 a month — now actually paying the balance down.

Frequently asked questions

Why is the repayment period payment so much higher?

During the draw period, payments only cover interest — none of the balance actually goes down. Once repayment begins, the payment has to cover both interest and enough principal to fully pay off the balance within the remaining years, which is a meaningfully bigger number.

Can I pay down principal during the draw period if I want to?

Usually yes — most HELOCs allow (but don't require) extra principal payments during the draw period, which reduces the balance you'll need to repay later and lowers the eventual repayment-period payment.

Is a HELOC's rate usually fixed or variable?

Most HELOCs carry a variable rate tied to a benchmark like the prime rate, meaning your payment can change over the life of the line — unlike a home equity loan's typically fixed rate.

This calculator provides estimates for general informational purposes only and is not financial advice. Real HELOCs typically carry variable rates that can change throughout both phases.