HELOC Calculator
Calculate HELOC monthly payments during draw and repayment periods. Compare HELOC vs cash-out refinance, model variable rate scenarios, and estimate total interest with tax deductibility.
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Monthly Interest-Only Payment
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Monthly P&I (Repayment Period) —
Total Interest Paid —
Extended More scenarios, charts & detailed breakdown ▾
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Monthly Interest-Only Payment
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Total Interest During Draw Period —
Professional Full parameters & maximum detail ▾
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Payment Summary
Monthly Interest-Only Payment —
Monthly P&I (Repayment) —
Total Interest (All Periods) —
Tax & Risk
Est. Annual Tax Savings (if deductible) —
Combined LTV —
Monthly Payment at Rate +1% —
Monthly Payment at Rate +2% —
How to Use This Calculator
- Enter your credit limit, amount drawn, interest rate, and draw/repayment periods for a quick payment estimate.
- Use the Interest Only tab to see draw-period interest-only payments.
- Use the Repayment tab to calculate P&I payments after the draw period ends.
- Use the HELOC vs Cash-Out Refi tab to compare monthly payments side by side.
- Use the Professional tab for variable rate scenarios, tax savings estimate, closing costs, and combined LTV check.
Formula
Interest-Only: Monthly Payment = Balance × (Annual Rate / 12)
Repayment P&I: Payment = Balance × r(1+r)^n / ((1+r)^n − 1)
Combined LTV = (Mortgage + HELOC) / Home Value
Repayment P&I: Payment = Balance × r(1+r)^n / ((1+r)^n − 1)
Combined LTV = (Mortgage + HELOC) / Home Value
Example
Example: $40,000 drawn at 8.5% APR. Draw period (10yr): Monthly interest = $40,000 × 0.085/12 = $283/month. Repayment period (20yr): Monthly P&I = $348/month.
Frequently Asked Questions
- A HELOC (Home Equity Line of Credit) is a revolving credit line secured by your home equity. During the draw period (typically 10 years), you can borrow and repay as needed, paying only interest on the balance drawn. After the draw period, you enter the repayment phase and pay principal + interest.
- During the draw period: Monthly Interest = Balance × (Annual Rate / 12). During repayment: Monthly P&I uses the standard amortization formula — Payment = Balance × r(1+r)^n / ((1+r)^n − 1), where r = monthly rate and n = repayment months.
- A HELOC is better if you need flexible access to funds over time and want to avoid refinancing your entire mortgage. A cash-out refi may offer a lower fixed rate and is better if you need a large lump sum. Compare total costs using our "HELOC vs Cash-Out Refi" tab.
- HELOC interest may be deductible if the funds are used to buy, build, or substantially improve the home securing the loan, and the combined mortgage debt does not exceed $750,000 (for loans after Dec 15, 2017). Consult a tax advisor for your specific situation.
Related Calculators
Sources & References (5) ▾
- CFPB — Home Equity Lines of Credit (HELOC) — Consumer Financial Protection Bureau
- Federal Reserve — Home Equity Lending Guide — Federal Reserve
- IRS — Home Equity Loan Interest Deductibility — Internal Revenue Service
- Fannie Mae — Home Equity Lending Guidelines — Fannie Mae
- HUD — Home Equity Conversion Resources — U.S. Department of Housing and Urban Development