HELOC Calculator

A home equity loan gives you a lump sum upfront at a fixed rate with equal payments from day one. A HELOC (home equity line of credit) is revolving credit, like a credit card secured by your home — you draw funds as needed during a 'draw period' (often interest-only payments), then repay the balance during a separate 'repayment period.'

Most HELOCs only require interest-only payments during the draw period: monthly payment = outstanding balance × (interest rate ÷ 12). Your balance doesn't shrink unless you voluntarily pay more than the interest-only minimum, since none of that payment goes to principal.

Once the draw period ends, the outstanding balance is fully amortized (like a standard loan) over the remaining repayment period — this typically causes a noticeable payment increase, since you're now paying down principal too, not just interest.

Most HELOCs carry a variable interest rate tied to an index (like the Prime Rate) plus a margin, so your payment can rise or fall over the draw and repayment periods as rates change — this calculator estimates your payment at a single rate you enter, not a full rate-change projection.

Lenders typically cap your combined loan-to-value (CLTV) at 80-85% of your home's value, including your existing mortgage — available credit = (home value × max LTV%) − current mortgage balance, the same formula used for a standard home equity loan.