HELOC Calculator
Your credit line, the interest-only draw payment and the jump when repayment starts.
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- Free preview: your draw and repayment payments in full, with the first rows of each table (up to 3) and a watermarked chart; every other figure is hidden.
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Interest and principal paid each year
Year by year
How this was calculated
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Results are estimates for general information and planning, not financial advice. Banks and institutions may calculate differently (rounding, fees, rate changes). Confirm figures with your lender or a qualified adviser before deciding.
How this tool is checked
- Based on
- the method set out under ‘How the payments are worked out’.
- Sources
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This guide cites one source:
- Tests
- 15 automated tests check its results.
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About the HELOC Calculator
A home equity line of credit (HELOC) lets you borrow against your home up to a limit, usually for a draw period in which many lenders ask only for the interest, followed by a repayment period in which the balance is paid off with principal and interest. The second payment can be much higher than the first, so it pays to see both before you borrow.
This calculator works out the credit line your home supports at the lender’s combined loan-to-value (CLTV) limit, the monthly payment in each period, the jump between them, the total interest and a year-by-year schedule, and lets you try a rate change, extra principal in the draw period or a balloon instead of a repayment period. Without a Pro pass the result is a free preview: both payments in full, the first rows of the schedule and the first step of the working; the other figures, the CSV, copying and printing unlock with the pass. Nothing you type leaves your browser.
How to use it
- Pick your currency, then enter the home’s value, what the mortgage still owes and the lender’s CLTV limit (the share of the value that the mortgage and the line together may reach).
- Enter the amount you draw, the interest rate and the lengths of the draw and repayment periods. Enter 0 years of repayment if the whole balance is due when the draw period ends.
- Optionally add extra principal paid each month of the draw period, or a rate change from a later year — most HELOC rates are variable.
- Read the two payments, the jump, the credit line and the total interest, and the schedule and working below them. The free preview shows the payments; the full figures, the CSV, copy and print come with a pass or by unlocking this result.
Examples
Mortgage $200,000 · CLTV limit 80% · 7.5% · 10-year draw, 20-year repayment
Credit line $120,000 · $312.50 a month (interest only), then $402.80 a month
$400,000 × 80% − $200,000 = $120,000. The draw payment is $50,000 × 7.5% ÷ 12; the repayment payment repays $50,000 over 240 months at 0.625% a month.
$312.50 a month for 5 years, $354.17 for the next 5, then $433.91
Combined limit 80% of the value (the HELOC itself at most 65%)
Credit line $180,000: $480,000 − $300,000
Common uses
- See the payment you will face when a HELOC’s draw period ends, before you draw on it.
- Check how much credit your home supports at a lender’s CLTV limit.
- Test how a rate rise or extra principal during the draw period changes the payments and the interest.
- Compare a line of credit with a fixed home equity loan for a renovation or a large expense.
How the payments are worked out
The credit line is the home’s value × the CLTV limit − the mortgage balance. During the draw period each month’s interest is the balance × the annual rate ÷ 12; with interest-only payments that is the whole payment, and any extra principal you add comes off the balance. When the repayment period starts, the balance B is repaid with level payments: payment = B × r ÷ (1 − (1 + r)^−n), where r is the monthly rate and n the number of months. When the rate changes, the payment is worked out again for the months that are left, as a variable-rate line re-amortises.
The jump is the difference between the last draw-period payment and the first repayment payment. With no repayment period the balance is due all at once at the end of the draw period: a balloon payment.
Draw period, repayment period and variable rates
The CFPB’s booklet What you should know about home equity lines of credit describes the two stages: in the draw period some plans set a minimum payment with part of the principal, others allow interest only; when it ends you repay, often over 10 or 15 years, or you may have to pay the whole balance at once. HELOC rates are usually variable: an index such as the U.S. prime rate plus the lender’s margin, sometimes with a low introductory rate for a few months. Use the rate change to see what a higher rate does to both payments.
HELOCs in Canada
The Financial Consumer Agency of Canada’s page on home equity lines of credit says you may borrow up to 65% of your home’s value with a HELOC, and that you need more than 35% equity for a stand-alone HELOC or 20% for one combined with a mortgage. Enter 80% as the CLTV limit for a HELOC combined with a mortgage, and check that the line itself stays within 65% of the value. A variable HELOC rate is typically based on the lender’s prime rate, and if you pay only the interest you never pay off the loan.
Before you borrow
A HELOC uses your home as collateral: if you can’t repay, you could lose it. Lenders may charge an appraisal fee, an application fee, closing costs and annual or transaction fees, and they can freeze or reduce your line if your home’s value falls. In the U.S. you can cancel a new line in the first three days after it is opened, by telling the lender in writing, and get back the fees you paid (CFPB booklet). If you need one lump sum at a fixed rate, compare a home equity loan.
Limitations
- Interest is worked out monthly on the balance (× rate ÷ 12); lenders usually charge it daily on the actual balance, so their figures differ by a little.
- The whole amount is taken as drawn at the start of the draw period; drawing later or in parts lowers the interest.
- Fees, annual charges, insurance and taxes are not included, and only one rate change can be entered.
- Some lenders set a minimum draw-period payment that includes principal: enter its principal part as extra principal. The extra is a fixed amount each month; a minimum worked out as a percentage of the balance is not modelled.
- The credit line uses the lender’s CLTV limit only; lenders also check your income, debts and credit, and may approve less.
Privacy
On this device: nothing is sent
Everything happens in your browser. What you enter or open here is not uploaded or stored by MySmartCoPilot.
Frequently asked questions
What do I get without a pass?
Without a pass, HELOC Calculator shows your draw and repayment payments in full, with the first rows of each table (up to 3) and a watermarked chart; every other figure is hidden. Until you unlock it, the result can’t be downloaded, copied or printed. A Pro, Premium or Ultimate pass, a one-time payment that never renews, unlocks the full result. The pricing page lists the passes and their prices.
How is a HELOC limit calculated?
Most lenders take a percentage of the home’s appraised value and subtract what you owe on the mortgage. With a $400,000 home, a $200,000 mortgage and an 80% limit, the line can be up to $400,000 × 80% − $200,000 = $120,000.
What is the payment during the draw period?
With interest-only payments it is the balance × the annual rate ÷ 12: $50,000 at 7.5% costs $312.50 a month. Some plans require part of the principal too.
Why does a HELOC payment jump when the draw period ends?
Because the balance then has to be repaid with interest over the repayment period. $50,000 at 7.5% repaid over 20 years costs $402.80 a month, $90.30 more than the interest-only payment.
Is a HELOC rate fixed?
Usually not: it is typically an index such as the prime rate plus a margin, so the payment can change even if you draw nothing more. Some lenders let you convert part of the balance to a fixed rate.
What if my HELOC has no repayment period?
Then the balance may be due all at once when the draw period ends, a balloon payment. Enter 0 repayment years to see it, and plan how you would pay or refinance it.
Is my information sent anywhere?
No. Everything is calculated in your browser; nothing you enter is uploaded or stored on a server.