HELOC Calculator

How the HELOC Calculator Works

A home equity line of credit has two phases. During the draw period you can borrow against the line and often pay interest only — that payment is simply the balance times the monthly rate. When the draw period ends, the balance amortizes over the repayment term into fixed principal-and-interest payments, which this calculator computes. A $50,000 balance at 8.5% over a 15-year repayment is about $492 a month.

HELOC rates are usually variable, tied to the prime rate, so the payment can change over time. The interest-only payment is much smaller but pays down no principal — the balance is still there when repayment begins.

repayment = balance × i × (1+i)ⁿ ÷ ((1+i)ⁿ − 1)