HELOC Calculator
Model interest-only HELOC payments and the later repayment period.
Model an interest-only draw period followed by fully amortizing repayment.
Result
Assumes the full outstanding balance exists at the start, stays constant through draw, and the rate stays fixed. The annual fee is a recurring account-maintenance charge during the draw period only; it stops in the repayment period. Enter 0 if your lender has no annual fee. For average monthly draw payments and this estimated APR, the annual fee is spread across 12 draw-period months; partial draw years are prorated. Actual annual billing dates can change cash-flow APR. Closing costs are a dollar amount or a percentage of the loan. Upfront payment uses outside cash; deduction reduces the disbursed cash. Both reduce net initial proceeds for APR without changing contractual principal. This model does not finance closing costs on top of the loan.
Calculation details
Scroll horizontally or vertically to see more. Download CSV for the complete schedule.
| Month | Payment incl. allocated fee | Interest | Principal | Balance |
|---|---|---|---|---|
| 1 | 333.33 | 333.33 | 0 | 50,000 |
| 2 | 333.33 | 333.33 | 0 | 50,000 |
| 3 | 333.33 | 333.33 | 0 | 50,000 |
| 4 | 333.33 | 333.33 | 0 | 50,000 |
| 5 | 333.33 | 333.33 | 0 | 50,000 |
| 6 | 333.33 | 333.33 | 0 | 50,000 |
| 7 | 333.33 | 333.33 | 0 | 50,000 |
| 8 | 333.33 | 333.33 | 0 | 50,000 |
| 9 | 333.33 | 333.33 | 0 | 50,000 |
| 10 | 333.33 | 333.33 | 0 | 50,000 |
| 11 | 333.33 | 333.33 | 0 | 50,000 |
| 12 | 333.33 | 333.33 | 0 | 50,000 |
| 13 | 333.33 | 333.33 | 0 | 50,000 |
| 14 | 333.33 | 333.33 | 0 | 50,000 |
| 15 | 333.33 | 333.33 | 0 | 50,000 |
| 16 | 333.33 | 333.33 | 0 | 50,000 |
| 17 | 333.33 | 333.33 | 0 | 50,000 |
| 18 | 333.33 | 333.33 | 0 | 50,000 |
| 19 | 333.33 | 333.33 | 0 | 50,000 |
| 20 | 333.33 | 333.33 | 0 | 50,000 |
| 21 | 333.33 | 333.33 | 0 | 50,000 |
| 22 | 333.33 | 333.33 | 0 | 50,000 |
| 23 | 333.33 | 333.33 | 0 | 50,000 |
| 24 | 333.33 | 333.33 | 0 | 50,000 |
| 25 | 333.33 | 333.33 | 0 | 50,000 |
| 26 | 333.33 | 333.33 | 0 | 50,000 |
| 27 | 333.33 | 333.33 | 0 | 50,000 |
| 28 | 333.33 | 333.33 | 0 | 50,000 |
| 29 | 333.33 | 333.33 | 0 | 50,000 |
| 30 | 333.33 | 333.33 | 0 | 50,000 |
| 31 | 333.33 | 333.33 | 0 | 50,000 |
| 32 | 333.33 | 333.33 | 0 | 50,000 |
| 33 | 333.33 | 333.33 | 0 | 50,000 |
| 34 | 333.33 | 333.33 | 0 | 50,000 |
| 35 | 333.33 | 333.33 | 0 | 50,000 |
| 36 | 333.33 | 333.33 | 0 | 50,000 |
How to use this calculator
Model an interest-only draw period followed by fully amortizing repayment. Enter amounts in the units shown, select the applicable options, and click Calculate. Use Reset to restore the starting values.
Calculation formula
Average draw payment = balance × monthly interest + annual fee/12 during draw only; repayment amortizes the balance without the annual fee.
Assumptions and accuracy
Review timing, rates, fees and result notes when comparing scenarios. Future returns and rates are assumptions rather than guaranteed outcomes. Monetary display follows the currency’s precision; intermediate calculations retain additional digits.
Choose what to calculate
Heloc calculator
Compare interest-only draw payments with amortizing repayment payments. The entered annual account fee applies during the draw period only.
Related searches: HELOC interest only payment calculator
Open this calculationUnderstanding this calculation
This HELOC model assumes the full balance is outstanding at the start, interest-only payments during draw and amortizing payments afterward. The rate is held fixed throughout the projection.
Reading your result
- Monthly draw payment
- Interest plus the annual account fee allocated over draw months for an average monthly cost.
- Monthly repayment
- The amortizing payment after draw; the modeled draw-period annual fee stops at this transition.
- Net initial proceeds after closing costs
- Loan balance minus entered closing costs; financing fees on top of principal is not modeled.
Compare two scenarios
- Hold balance and terms fixed; compare a no-fee case with the entered closing cost and annual account fee.
- Then change the interest rate separately to see the payment effect; this does not forecast future variable-rate resets.
Check before comparing
- The draw period does not simulate gradual new advances or changing balances.
- An allocated monthly account fee is not a prediction of the lender’s actual annual billing date.
- Fees can change estimated APR even when the contract interest rate stays the same.
Result explanations checked against this calculator’s local model. Model scope and sources appear below.
Worked examples
Estimate available HELOC credit from an LTV cap
Illustrative inputs are specified in the steps below; the example link loads the complete settings. Unmentioned settings use the linked defaults.
- 500,000 × 80% = 400,000 maximum secured debt. Subtract the 210,000 mortgage balance to leave 190,000 potential line capacity.
Estimated maximum HELOC: 190,000 USD.
Try these inputsAnnual fees stop when HELOC repayment starts
Balance 12,000 USD; illustrative zero rate; one-year draw, two-year repayment; annual fee 120; upfront closing costs 50.
- Annual fee allocated to draw months: 120 / 12 = 10 per month.
- Repayment: 12,000 / 24 = 500 per month, with no annual-fee allocation.
- Total fees: 50 upfront + 120 for the one-year draw period = 170.
Monthly draw cost is 10 USD; monthly repayment is 500 USD; total modeled fees are 170 USD.
Try these inputsSeparate annual account fees from HELOC interest
Balance $12,000, zero interest, one-year draw, one-year repayment, annual draw fee $120 and no closing costs.
- Allocated draw fee = 120 ÷ 12 = $10 per month.
- Repayment principal = 12000 ÷ 12 = $1,000 per month.
- Total annual draw fees = $120; total interest is zero.
The fee is a borrowing cost, but is not labeled as interest.
Try these inputsCommon questions
Why can my HELOC payment rise after the draw period?
Interest-only payments do not reduce principal. Repayment must cover both interest and principal over the remaining term.
How much home equity can I borrow against?
The maximum-credit mode subtracts existing mortgage debt from the entered LTV share of home value. This is an estimate, not an approved line.
When is the HELOC annual fee charged?
The annual fee is a recurring yearly charge for keeping the line open. This calculator applies it during the draw period only and stops it during repayment. Enter 0 for a no-annual-fee account. It is averaged over draw-period months for payment and APR estimates; actual lender billing may occur once yearly.
Scope and assumptions
The draw model assumes the entered balance and rate rather than a full sequence of future draws. Actual lines may have variable rates and lender-specific minimum payments. Annual account-maintenance fees are modeled only during the draw period, not repayment. Fees are divided by 12 for average monthly payments and estimated APR; partial years are prorated. Actual annual billing timing and lender terms may differ.
Sources
- Calculation methodology, rule versions and testing limitations
- Reference calculator for feature comparison (not a model-parity certification)
Calculation notes checked . Examples are mathematical checks under the stated assumptions.
Calculation methods and formulas
Draw and Repayment Periods
Model an interest-only draw period followed by fully amortizing repayment.
Average draw payment = balance × monthly interest + annual fee/12 during draw only; repayment amortizes the balance without the annual fee.
Maximum Credit
Estimate the maximum additional home equity credit from a lender’s combined loan-to-value ceiling.
Maximum credit = home value × maximum LTV − outstanding mortgage balance.
See our calculation methodology and review status for data versions, rounding and validation limitations.