Heloc Payment Calculator

A HELOC has two payment phases that look nothing alike. During the draw period — typically 10 years — you pay interest only on what you’ve borrowed, which keeps the minimum payment low. When the repayment period starts, that same balance gets amortized over the remaining term and the payment jumps significantly. The HELOC payment calculator above shows both numbers — draw period minimum and repayment period payment — so the second phase isn’t a surprise when it arrives.

HELOC Payments During the Draw Period

During the draw period, the minimum monthly payment is interest only on your outstanding balance. At a 8.50% rate — close to the national average as of July 2026 — here’s what different draw amounts cost per month:

What Happens to Your Payment When the Draw Period Ends

At the end of the draw period, the outstanding balance converts to a fully amortizing loan — principal and interest — over the remaining repayment term, typically 10 to 20 years. On a $75,000 balance at 8.50%, the interest-only draw payment is $531/month. That same balance amortized over a 20-year repayment period becomes $651/month — a $120 increase. Over a 10-year repayment term, it becomes $929/month — a $398 jump from the draw payment.

This is called payment shock, and it catches borrowers off guard most often when they’ve made only minimum payments throughout the entire draw period. Making voluntary principal payments during the draw phase reduces what gets amortized at repayment start and keeps the payment increase manageable.

HELOC Rates in 2026 and How They Move

Almost all HELOCs carry variable rates tied to the Prime Rate, which moves with Federal Reserve policy. As of July 2026, the Prime Rate is 7.50%. Lender margins on HELOCs typically run 0%–3.5% above Prime depending on credit score, CLTV, and draw amount — putting the effective rate range at 5.95%–10.85% APR nationally. A 1% rate increase on a $100,000 balance adds $83/month to the interest-only payment and roughly $55–$65/month to the repayment period payment.

Rate caps matter more than the starting rate for HELOC budgeting. Most HELOCs include a periodic cap (how much the rate can move per adjustment) and a lifetime cap (total maximum increase over the loan term). A HELOC with a 2% periodic cap and 6% lifetime cap starting at 8.50% can reach 14.50% at its maximum — know those numbers before signing.

How Much Can You Borrow on a HELOC?

Lenders calculate the maximum credit line from your combined loan-to-value ratio (CLTV). Most allow up to 80–85% CLTV, meaning your first mortgage plus the HELOC balance can’t exceed 80–85% of your home’s appraised value.

On a home worth $450,000 with a $280,000 mortgage balance: at 85% CLTV, the total allowed debt is $382,500. Subtract the existing mortgage ($280,000) and the maximum HELOC credit line is $102,500. Credit score, DTI, and income verification all still apply — CLTV sets the ceiling, not the approval.

HELOC vs. Home Equity Loan: Which Payment Structure Works Better?

A home equity loan gives you a fixed lump sum at a fixed rate with equal monthly payments from day one — predictable, but inflexible. A HELOC gives you a revolving credit line with variable payments that change as you draw and repay — flexible, but unpredictable if rates move significantly.

HELOC makes more sense when the need is ongoing or uncertain — home renovation with multiple phases, business capital, emergency reserve. Home equity loan makes more sense when the amount needed is known upfront and rate predictability matters — debt consolidation, a single large purchase, a defined project with a fixed budget. The calculator above handles both scenarios; model them side by side with your actual numbers before deciding.