HELOC Calculator
Calculate your interest-only payment during a HELOC draw period and your fully amortizing payment once repayment begins. Free and accurate.
- Draw-period payment
- 333.33
- Repayment payment
- 418.22
How to use
- Enter the amount you plan to draw on your HELOC.
- Enter the annual interest rate, the interest-only draw period, and the repayment term in years.
- Read the interest-only draw-period payment and the principal-and-interest repayment payment.
Examples
- $50,000 at 8% / 10yr draw + 20yr repay:
draw $333.33 → repay $418.22 - Interest-only draw period:
$50,000 at 8% → $333.33/mo
FAQ
- How is the draw-period payment calculated?
- During the draw period a HELOC is typically interest-only, so the payment is balance × annual rate ÷ 12 ÷ 100. No principal is paid down.
- How is the repayment-period payment calculated?
- Once repayment begins the balance fully amortizes over the repayment term: Payment = P·r·(1+r)^n / ((1+r)^n − 1), where r is the monthly rate and n is the number of repayment months.
- Why is the repayment payment higher than the draw payment?
- The draw payment only covers interest, while the repayment payment also pays down principal so the balance reaches zero by the end of the term.