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HELOC Calculator

Estimate the interest-only draw-period payment, the later repayment-period payment, available credit line, projected CLTV, fees, and total cost of a home equity line of credit.

First thing to check Payment jump risk

HELOC payments may rise when the draw period ends and repayment begins.

Inputs

Credit Line, Draw Balance, and Home Equity

Separate the approved credit line from the amount you plan to draw. CLTV is usually evaluated against the credit line, while payment depends on the drawn balance.

Home equity and credit line

Current home value Current mortgage balance Requested HELOC limit Amount drawn Max CLTV target (%) Annual fee

Rate, periods, and fees

Interest rate (%) Draw period (years) Repayment period (years) Closing costs Closing cost treatment

HELOC estimate $0

Repayment-period payment will appear here.

Draw-period payment$0

Payment increase$0

Available line at target CLTV$0

Projected CLTV0%

Two-phase payment view

Draw and repayment comparison will appear here.

Cash after costs$0

Total interest$0

Total fees and closing costs$0

Total estimated cost$0

Formula used

Draw payment = drawn balance x monthly rate. Repayment payment = amortized payment over the repayment period. CLTV = mortgage balance + HELOC limit divided by home value.

Method

How This HELOC Calculator Works

The calculator treats a HELOC as a two-phase loan. During the draw period, the estimate assumes interest-only payments on the amount drawn plus any annual fee. During repayment, the remaining balance is amortized over the repayment period with principal and interest.

For equity capacity, the calculator applies the target CLTV to the home value and subtracts the existing mortgage balance. The projected CLTV uses the requested credit limit, because lenders may evaluate the available line even if you do not draw it all immediately.

Data and source notes: No lender quote, appraisal, title, credit, or live rate data is used. The calculator relies on the home value, mortgage balance, credit limit, draw amount, CLTV target, interest rate, period length, and fee assumptions entered by the user.

Risk note

A HELOC Is Secured by Your Home

A HELOC can be flexible, but the collateral is still the property. The U.S. Office of the Comptroller of the Currency warns homeowners to compare terms carefully because home-secured borrowing can put the home at risk if payments are not made.

Read the OCC consumer warning.

Use cases

When a HELOC Estimate Is Useful

Staged home projects

A HELOC can fit projects where costs arrive over time, but rate changes and later repayment should be planned upfront.

Emergency backup line

Compare the annual fee and closing costs with the value of keeping unused borrowing capacity available.

Debt consolidation

Check whether lower interest outweighs the risk of turning unsecured debt into debt secured by your home.

Payment shock planning

The draw-period payment can look manageable, but repayment can be much higher once principal is due.

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FAQ

HELOC Calculator FAQ

Why is the draw-period payment lower?

Many HELOCs require only interest payments during the draw period. That means the balance may not fall until repayment starts.

Why does the repayment payment jump?

After the draw period, the balance must usually be repaid with principal and interest over a shorter repayment period.

Does this calculator model variable rates?

It uses one interest rate for simplicity. Real HELOCs often have variable rates, so test higher rates before relying on the estimate.

What if I draw less than the full line?

The payment estimate uses the amount drawn. The CLTV estimate uses the requested credit limit because lenders may evaluate the available line.

Is this a HELOC approval estimate?

No. Approval depends on lender underwriting, credit, income, debts, appraisal, title, property type, CLTV, and state rules.

Is a HELOC the same as a home equity loan?

No. A HELOC is a revolving line of credit, while a home equity loan is usually a fixed lump-sum installment loan with a set payoff schedule.

Does a HELOC charge interest on the full credit limit?

Usually interest is charged on the amount drawn, not the unused credit line. Fees may still apply even if the line is not fully used.

Can a HELOC put my home at risk?

Yes. A HELOC is secured by the home, so missed payments can have serious consequences including possible foreclosure.

Disclaimer

This calculator is for general informational purposes and simple arithmetic checks. It is not a loan offer, approval decision, legal advice, tax advice, or financial advice. Verify HELOC terms, variable-rate rules, fees, CLTV limits, draw-period requirements, repayment terms, and home-secured borrowing risks with a qualified professional or lender.