HELOC Payment Calculator
Estimate the interest-only payment on a home equity line of credit during the draw period, and the higher payment once repayment starts.
Example: a $50,000 balance at 8% costs $333.33 a month interest-only, then $418.22 a month over a 20-year repayment period. All figures come from your inputs.
Build your scenario
Use your actual figures where available. The output is an educational estimate based on the assumptions below.
How it works
During the draw period many lines of credit only require interest: balance × rate ÷ 12. When repayment starts, the balance is spread over the remaining years like a standard loan, so the payment jumps. HELOC rates are usually variable; this estimate holds your rate constant. Terms differ by lender in the US and Canada, so enter the periods in your agreement.
Repayment = P × i ÷ (1 − (1 + i)−n)
Worked example
$50,000 at 8%: $333.33 a month for 10 years. Then over 20 years: $418.22 a month. Total interest $90,372.81.
HELOC payments by balance and rate
Interest-only during a 10-year draw period, then the balance repaid over 20 years at the same rate. Real HELOC rates are usually variable, so the payment moves with the index.
| Balance | Rate | Draw period (interest only) | Repayment period (20 years) |
|---|---|---|---|
| $25,000 | 8% | $166.67 | $209.11 |
| $25,000 | 9% | $187.50 | $224.93 |
| $50,000 | 8% | $333.33 | $418.22 |
| $50,000 | 9% | $375.00 | $449.86 |
| $50,000 | 10% | $416.67 | $482.51 |
| $100,000 | 8% | $666.67 | $836.44 |
| $100,000 | 9% | $750.00 | $899.73 |
Payment shock at the end of the draw period
When the draw period ends you start repaying principal, so the payment jumps even if the rate stays the same. On $50,000 at 8% it rises from $333.33 to $418.22, about 25% more. If the rate also rises to 10%, it becomes $482.51. Plan for the repayment payment, not the interest-only one. Paying some principal during the draw period shrinks the jump.
HELOC vs home equity loan vs cash-out refinance
- HELOC: a revolving line with a usually variable rate. You pay interest only on what you draw.
- Home equity loan: a lump sum with a usually fixed rate and fixed payments from the start.
- Cash-out refinance: replaces your whole first mortgage with a bigger one. This is worth comparing only if the new rate on the full balance makes sense. See the refinance break-even calculator.
Sources
- IRS Publication 936: Home Mortgage Interest Deduction
- CFPB: what is a home equity line of credit (HELOC)?
- CFPB: what is a home equity loan?
- CFPB: what is a cash-out refinance?
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Frequently asked questions
What is the payment on a $50,000 HELOC at 8%?
About $333.33 a month interest-only. Once a 20-year repayment period starts, about $418.22 a month at the same rate.
Why does my HELOC payment go up?
The draw period often allows interest-only payments. Repayment adds principal, so the payment rises even if the rate stays the same.
Does this work for Canada?
Yes. Enter your own rate and terms; the maths is the same. Many Canadian lines of credit are interest-only with no fixed repayment date, so set the repayment period you plan to use.
What is the payment on a $100,000 HELOC?
At 8%, about $666.67 a month while interest-only and about $836.44 a month once a 20-year repayment period starts. At 9%, it is $750.00, then $899.73.
Is HELOC interest tax deductible?
In the US it can be, but only when the money is used to buy, build or substantially improve the home that secures the line, and within the mortgage-interest limits. See IRS Publication 936 or ask a tax adviser.
Educational information only; not financial, tax, legal, or investment advice.