How HELOC payments actually work.

HELOC (Home Equity Line of Credit) lets homeowners borrow against home equity as needed. Typical structure: 10-year draw period (interest-only payments) followed by 10-20 year repayment period (principal + interest). This calculator shows both phases.

100,000 credit line with 60,000 drawn at 8% APR, 10-year draw, 15-year repayment: Draw period monthly is 400 interest-only. Repayment period monthly is 573 (P&I). Total interest over both phases ~62,000. HELOC flexibility comes at cost over time.

HELOC rates are typically variable, tied to base rate plus margin. Rising rate environments expose borrowers. Use conservatively - draw only for genuine needs (home improvement, education, emergency), not discretionary spending. Carrying long-term HELOC balances typically costs more than traditional mortgage refinancing.

Run it with sensible defaults

Using heloc credit line of 100,000, current balance drawn of 60,000, interest rate of 8%, draw period of 10, the calculation works out to 400.00. Nudge the inputs toward your own situation and the output recalculates instantly. The defaults are meant as a starting point, not a recommendation.

The levers in this calculation

The inputs — HELOC Credit Line, Current Balance Drawn, Interest Rate, Draw Period, and Repayment Period — do not pull with equal force. Not every input has equal weight. Flip one at a time toward extreme values to feel which ones move the needle most for your situation.

How the math works

Draw period: interest-only = balance × monthly rate. Repayment period: standard amortisation over repayment years. The working is transparent — you can verify every step yourself in the formula section below. No black box, no opaque "proprietary model".

What the headline rate hides

Lenders quote a rate; what you pay is a blend of that rate, fees, insurance, and any early-repayment penalty built into the product. The figure here isolates the core interest cost so you can compare like-for-like across deals — then add the other costs separately before signing anything.

What this doesn't capture

The figure excludes arrangement fees, valuation costs, legal fees, insurance, and any early-repayment charges — those can add several thousand to the headline cost. Rate changes at renewal for fixed-term deals will shift the picture further. Use this for the core interest/principal math and add the other costs on top.