HELOC Payment Calculator: Estimate Your Monthly Payment
HELOC payment calculator
Payments at your rate for common line sizes
| Balance | Interest-only | Principal + interest |
|---|
Estimate only, based on the rate and terms you entered and assuming the full balance is drawn at the start and the rate stays the same. Variable-rate HELOC payments change when the rate changes. Not a loan offer. Excludes fees, taxes and insurance.
What is a HELOC?
A home equity line of credit (HELOC) is a revolving line of credit secured by your home. Instead of receiving one lump sum, you get a credit limit and draw money as you need it, much like a credit card, but usually at a lower rate because your home backs the line. You pay interest only on what you've actually drawn, not on the full limit. The Consumer Financial Protection Bureau's HELOC guide covers how lines are structured and what to compare.
Homeowners use HELOCs to pay off high-interest debt, fund renovations, cover tuition or keep a cushion for large expenses, often while keeping a low-rate first mortgage in place. If you're not sure how much you could borrow, start with our home equity calculator.
How HELOC payments work
Most HELOCs have two phases, and the payment works differently in each:
| Phase | What you can do | Typical payment | Common length |
|---|---|---|---|
| Draw period | Borrow, repay and borrow again up to your limit | Often interest-only on what you've drawn; some lines require principal too | Often 3 to 10 years |
| Repayment period | No new draws; the balance is paid down | Principal + interest, so the payment is higher | Often 10 to 20 years |
Your actual draw and repayment periods, minimum payment rules and rate type are set by the lender and program, so check the terms of any offer. Some lines require a balloon payment at the end of the draw period, which is why it matters to read the agreement closely.
How much is the monthly payment on a $50,000 or $100,000 HELOC?
These examples use a hypothetical 9.00% rate only to show the math, with a 20-year repayment period. They are not quotes or offers. Your rate depends on credit, equity, income, property and the market.
| Balance | Interest-only payment | Principal + interest (20 years) | Increase at repayment |
|---|---|---|---|
| $25,000 | About $188/mo | About $225/mo | About +$37 |
| $50,000 | About $375/mo | About $450/mo | About +$75 |
| $100,000 | About $750/mo | About $900/mo | About +$150 |
| $150,000 | About $1,125/mo | About $1,350/mo | About +$225 |
The jump from interest-only to principal-and-interest is known as payment shock. Planning for it from the start, or paying some principal during the draw period, keeps it manageable.
Variable-rate vs fixed-rate HELOC payments
Many HELOCs have a variable rate made of an index (often the prime rate) plus a margin set by the lender. When the index moves, your rate and payment move with it, usually subject to any caps in your agreement. Some lenders offer fixed-rate HELOCs, or let you lock a fixed rate on part of your balance, which keeps that payment steady. Fixed-rate HELOC terms such as 15, 20 or 30 years are available from some lenders.
| Variable-rate HELOC | Fixed-rate HELOC or fixed-rate lock | |
|---|---|---|
| Payment | Can rise or fall | Stays the same on the fixed portion |
| Best for | Short-term borrowing you'll repay quickly | Larger balances repaid over years, such as debt consolidation |
| Plan for | Test higher rates in the calculator | Any fee or minimum to lock a rate |
Using a variable-rate line? Run the calculator at your current rate and again at a rate 2 points higher to see how a rate increase would change your payment.
Ways to keep your HELOC payment manageable
- Draw only what you need. You pay interest only on the balance, not the limit.
- Pay principal during the draw period. Even a small extra amount reduces payment shock later.
- Lock a fixed rate on large draws if your lender offers it.
- Choose a repayment period that fits your budget, keeping in mind that a longer term means more total interest.
- Refinance or pay down before repayment starts if your payment would be hard to handle.
HELOC vs home equity loan payments
A home equity loan pays you a lump sum and usually starts principal-and-interest payments right away at a fixed rate, so the payment is predictable from day one. A HELOC often starts with lower interest-only payments that rise later. To model a home equity loan, set the draw period to "None" in the calculator above. If you're using equity to pay off debt, our guide to a home equity loan for debt consolidation compares the options side by side.
What it takes to qualify for a HELOC
| Factor | What lenders review |
|---|---|
| Equity | Your combined loan-to-value after the new line; each lender sets a maximum |
| Credit | Score and history; minimums vary by lender (our site focuses on 600+ credit) |
| Income and DTI | Verifiable income and your debt-to-income ratio |
| Home value | An appraisal or, with some programs, an automated valuation; some lenders skip the in-person appraisal below a loan-size limit |
Costs that affect your HELOC
Beyond the rate, HELOCs can carry an origination fee, an appraisal or valuation fee, title and recording costs, an annual fee, or an early-closure fee. Some lenders charge a one-time origination fee in place of other closing costs. The FTC's guide to home equity loans and lines of credit lists the terms to ask about and explains your right to cancel certain home equity loans within three business days.
How the calculator works
- Interest-only payment = balance × annual rate ÷ 12.
- Principal + interest payment uses the standard amortization formula over the repayment period you choose.
- Total interest adds the interest-only payments during the draw period to the interest paid during repayment.
- It assumes the full balance is drawn on day one and the rate doesn't change. Real HELOC payments vary with your actual draws and, for variable-rate lines, with rate changes.
How to use this HELOC payment calculator
- Enter the amount you plan to draw. Use the balance you expect to carry, not the full credit limit, because interest is charged only on what you draw.
- Enter an interest rate. Use a rate you've been quoted. If you don't have one yet, try a few rates to see a range.
- Choose a draw period. Pick "None" to see a principal-and-interest payment from day one, which is also how a home equity loan works.
- Choose a repayment period. A shorter period raises the monthly payment but cuts total interest. A longer period does the opposite.
- Compare the two payments. The gap between the interest-only payment and the repayment payment is the increase to budget for.
How the rate changes your HELOC payment
Small rate differences add up on a large line. This table shows a $100,000 HELOC balance at several hypothetical rates to illustrate the math. These are not quotes or offers.
| Hypothetical rate | Interest-only | Principal + interest (15 years) | Principal + interest (20 years) |
|---|---|---|---|
| 7.00% | About $583/mo | About $899/mo | About $775/mo |
| 8.00% | About $667/mo | About $956/mo | About $836/mo |
| 9.00% | About $750/mo | About $1,014/mo | About $900/mo |
| 10.00% | About $833/mo | About $1,075/mo | About $965/mo |
On a variable-rate HELOC, each 1-point rate increase adds about $83 a month to the interest-only payment on a $100,000 balance. That's why it helps to run the calculator at a higher rate as a stress test before you borrow.
What to do when your HELOC draw period ends
The end of the draw period is when many homeowners first feel the full payment. You typically have a few choices:
- Start repaying on schedule. Your payment converts to principal and interest over the repayment period. Check your statement ahead of time so the new amount isn't a surprise.
- Pay down the balance first. Paying the balance down before repayment starts lowers the new payment.
- Refinance into a new HELOC or home equity loan. This can reset the term or move you to a fixed rate, subject to qualifying at that time.
- Roll it into a cash-out refinance. For some homeowners, combining the first mortgage and the HELOC into one loan makes sense, though that replaces your current first-mortgage rate.
Your lender must tell you the terms of the repayment period in your agreement. The CFPB's HELOC brochure explains what to look for, including balloon payments.
HELOC payment vs credit card payment
Many homeowners use a HELOC to pay off credit cards because home equity rates are often lower than card rates. Here's a simple hypothetical comparison on a $30,000 balance, showing interest only:
| Credit card at a hypothetical 24% | HELOC at a hypothetical 9% | |
|---|---|---|
| Monthly interest on $30,000 | About $600 | About $225 |
| Secured by your home? | No | Yes |
A lower rate only helps if the cards stay paid off. Moving unsecured debt onto your home also puts the home at risk if you can't make the payments. Our guide to a home equity loan for debt consolidation covers the pros, cons and a full payoff example.
Taxes and HELOC interest
HELOC interest is generally deductible only if you itemize and use the money to buy, build or substantially improve the home that secures the line. See IRS Publication 936 and talk to a tax professional.
Frequently asked questions
How is a HELOC payment calculated?
During an interest-only draw period, the payment is the balance times the annual rate, divided by 12. During repayment, the balance is spread over the remaining term with principal and interest, like a regular loan. Some HELOCs require principal payments during the draw period as well.
How much would a $100,000 HELOC cost per month?
It depends on the rate and the phase. At a hypothetical 9.00% rate, interest-only would be about $750 a month, and principal and interest over 20 years would be about $900 a month. Enter your own rate in the calculator above for your estimate.
What is the monthly payment on a $50,000 HELOC?
At a hypothetical 9.00% rate, about $375 a month interest-only, or about $450 a month with principal and interest over 20 years. Your actual payment depends on your rate and terms.
Why does my HELOC payment go up after the draw period?
Once the draw period ends, you start repaying principal as well as interest over a fixed number of years. That usually makes the payment noticeably higher than the interest-only payment.
Do I pay interest on the whole credit line?
No. You pay interest only on the amount you've actually drawn, not on your full credit limit.
Can I pay more than the minimum on a HELOC?
Many HELOCs allow extra payments toward principal, which lowers future interest. Check your agreement for any prepayment terms or fees.
Is a fixed-rate HELOC better?
A fixed rate gives you a predictable payment, which many homeowners prefer for paying off debt or big projects. A variable rate may start lower but can change. The right choice depends on your plans and how much payment change you can handle.
How long does it take to pay off a HELOC?
It depends on your draw and repayment periods and how much you pay. With interest-only payments during a 10-year draw period and a 20-year repayment period, the full term is 30 years. Paying principal during the draw period or making extra payments can shorten it significantly.
Does using a HELOC calculator affect my credit?
No. This calculator runs in your browser, doesn't pull credit and doesn't collect any personal information.
Related guides and tools
Sources
- Consumer Financial Protection Bureau: What you should know about home equity lines of credit
- Federal Trade Commission: Home Equity Loans and Home Equity Lines of Credit
- Consumer Financial Protection Bureau: What is a debt-to-income ratio?
- Internal Revenue Service: Publication 936, Home Mortgage Interest Deduction