Home equity line · Payment transition
HELOC Payment Calculator
See how an interest-only draw-period payment can jump when amortizing repayment begins, then stress-test both payments at a higher variable rate.
Quick estimate
Estimate HELOC draw and repayment payments
Estimated payment when repayment begins
$956$289 above the modeled interest-only draw paymentAssumes no new draws, a level balance entering repayment, monthly interest, and fully amortizing repayment. Actual minimum formulas, index/margin changes, caps, balloons, conversion options, and fees follow the HELOC agreement.
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How this calculator works
The draw-period estimate assumes the minimum covers one month of interest on the entered balance plus one-twelfth of the annual fee. It does not reduce principal.
Repayment can create payment shock
When the draw period ends, many plans stop new borrowing and require the balance to amortize over a fixed repayment period. The calculator uses the standard level-payment formula to repay the entered balance over that term.
Variable rates move both estimates
HELOC APRs commonly change with an index plus a margin. The stress scenario adds entered percentage points to the current rate; it does not predict future index moves or apply contract rate caps.
Your agreement may use another minimum
Plans can require a percentage of balance, a fixed principal amount plus interest, a minimum dollar payment, or a balloon. Fees, initial draws, fixed-rate conversions, and early-closure reimbursement also vary.
A HELOC is not simply a flexible credit card. Falling behind can put the home at risk, and the lender may freeze or reduce access under certain conditions.
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Worked example
A $100,000 HELOC at 8% has an interest-only payment of about $667 per month before fees. Repaying the same balance over 15 years requires about $956.
A two-point rate increase raises the amortizing payment further. Replace the example term and margin with the disclosure’s repayment structure.
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Questions people ask
How is a HELOC payment calculated?
During the draw period it may be interest only or follow another minimum formula. During repayment, principal is usually added, often causing a higher payment.
Why did my HELOC payment increase?
The variable index may have risen, the balance may be higher, a promotional rate may have ended, or the line may have entered repayment.
Does this include future draws?
No. It assumes the entered balance is the balance entering repayment and no additional borrowing occurs.
Can a HELOC require a balloon payment?
Yes, some plans require a large final payment or full repayment when the draw period ends. Review the agreement.
Can I convert to a fixed rate?
Some plans allow fixed-rate conversion for part of the balance, often at a different rate. This calculator models one entered rate.
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Sources and model basis
Published rules and formulas are linked below. Values supplied by the visitor remain scenario inputs, not factual claims.
- CFPB: What is a HELOC?Draw period, repayment period, payment increases, and variable rates
- CFPB HELOC bookletInterest-only options, repayment schedules, balloons, fees, and risk
- Regulation Z §1026.40Disclosures for home-equity plans and representative payment examples