HELOC Calculator
The credit a home equity line allows, the interest-only payment while drawing, and the jump when repayment starts.
Result
Payment once repayment starts: $492.37
At today’s rate unless you test a rise. A real HELOC rate moves with its index.
- Interest-only payment while drawing
- $354.17
- Increase when repayment starts
- $138.20
- Repayment if the rate rises
- $552.70
- Credit available under the limit
- $175,000.00
- Total interest at today’s rate
- $81,126.88
https://calcgallery.com/finance/heloc-calculator/
Results are arithmetic estimates based on the values you enter. Rates, fees and terms are set by your lender or provider, and your actual agreement controls what you pay or receive. Confirm important figures with them or with a qualified adviser. Read the full disclaimer
How to use the HELOC Calculator
- Enter your home's value, what you still owe on your first mortgage, and the lender's maximum combined loan-to-value.
- Enter how much you plan to draw, the current rate, and the lengths of the draw and repayment periods.
- Optionally test a rate rise, then read the payment in each period and the jump between them.
The two periods
available credit = home value × maximum CLTV − first mortgage balance (never below zero)draw period payment = balance × rate ÷ 12, interest onlyrepayment period payment = balance × i ÷ (1 − (1 + i)⁻ⁿ), i = rate ÷ 12The page assumes you draw the amount at the start of the draw period and repay it over the repayment period. Paying down principal during the draw period, or drawing in stages, would lower the interest. Drawing more would raise it.
Your home secures the line
A HELOC is secured on your home. Missing payments can put the home at risk, and a fall in its value can lead the lender to freeze or reduce the line. Lenders’ terms, fees and caps on rate rises differ, so check the agreement for the actual rules.
When the draw is more than the limit
If the amount you enter is more than the credit available under the limit you set, the page still works out the payments and says the draw is over the limit, so you can see both figures.
With your numbers
- Available = $500,000.00 × 85% − $250,000.00 = $175,000.00
- While drawing: $50,000.00 × 8.5% ÷ 12 = $354.17 a month, interest only
- Repaying over 180 months: $492.37 a month, $138.20 more
Quick reference
At today’s rate unless you test a rise. A real HELOC rate moves with its index.
| Example | Payment once repayment starts |
|---|---|
| USD 50,000 at 8.5%, 10 + 15 years | $492.37 |
| Same with a 2-point rise | $492.37 |
| USD 400,000 first mortgage, 85% | $196.95 |
| USD 450,000 first mortgage, 85% | $0.00 |
| USD 100,000 at 9%, 10 + 20 years | $899.73 |
| USD 25,000 at 7.75%, 5 + 10 years | $300.03 |
Common questions about the HELOC Calculator
- What is payment shock on a HELOC?
- The jump in your monthly payment when the draw period ends. During the draw period most HELOCs let you pay interest only, so the balance does not fall. When repayment starts you begin paying off the principal as well, over a shorter time. On 50,000 at 8.5%, the payment goes from 354.17 to 492.37 a month.
- Why test a rate increase?
- Because a HELOC’s rate is usually variable, tied to an index such as the prime rate. A projection at today’s rate for 25 years is unlikely to hold. At 2 points higher, the repayment on the same 50,000 would be 552.70 a month. The page shows both so you can see how much a rise would cost.
- How much can I borrow?
- Lenders usually cap the total of all loans secured on the home at a percentage of its value, the combined loan-to-value. The credit available is that percentage of the value less what you owe on the first mortgage. The page does not assume a percentage, because lenders set their own; ask yours, and enter it.
- How is a HELOC different from a home equity loan?
- A home equity loan gives you a lump sum at a fixed rate with level payments from the start. A HELOC is a credit line you draw on as needed, usually at a variable rate, with interest-only payments at first. The home equity loan calculator prices the lump-sum option.