Free HELOC Payment Calculator
Estimate monthly payments during the draw period and repayment period of a home equity line of credit.
USD
USD
%
years
years
Draw Period Payment (interest only)
$425.00
Repayment Period Payment (P&I)$520.69
Total Interest During Draw$51,000
Total Interest During Repayment$64,967
Total Interest Cost (all periods)$115,967
Draw Period Payment (interest only) vs Draw Period
How a HELOC Works
A HELOC has two phases: a draw period where you access funds and make interest-only payments, and a repayment period where you pay principal and interest.
Draw Period
Monthly Payment = Balance x (Annual Rate / 12)
During this phase, you only pay interest on what you have borrowed.
Repayment Period
Monthly Payment = P x r x (1+r)^n / ((1+r)^n - 1)
Once the draw period ends, the balance is amortized over the repayment period with fully amortizing payments.
Key Considerations
Example Calculation
A $100,000 HELOC with $60,000 drawn at 8.5% APR. 10-year draw period, 20-year repayment period.
- 01Monthly rate: 8.5% / 12 = 0.7083%
- 02Draw period payment: $60,000 x 0.007083 = $425.00/month (interest only)
- 03Total draw period interest: $425.00 x 120 months = $51,000
- 04Repayment period: 20 years = 240 months
- 05Repayment payment: $60,000 amortized over 240 months at 8.5% = $520.53/month
- 06Total repayment interest: $520.53 x 240 - $60,000 = $64,927
- 07Total interest cost: $51,000 + $64,927 = $115,927