HELOC Payment Calculator

The #1 ultimate heloc payment calculator for tracking interest-only costs and preparing for principal repayment.

Using a professional heloc payment calculator is the smartest way to manage a Home Equity Line of Credit, one of the most flexible but complex borrowing tools available to modern homeowners. Unlike a traditional fixed-rate mortgage, a HELOC functions as a revolving line of credit where your balance and interest rate can shift monthly based on the Prime Rate. By utilizing this heloc payment calculator, you can prepare for varying market conditions and ensure that your home equity remains a tool for wealth building rather than a source of financial stress.

What is a HELOC and How Does it Work?

A Home Equity Line of Credit (HELOC) is a second mortgage that gives you access to a line of credit based on the equity in your home. It works much like a credit card: you have a limit, you borrow what you need, and you only pay interest on what you use. The unique feature of a HELOC is that it typically begins with an “Interest-Only” period, allowing for extreme cash-flow flexibility. However, without a heloc payment calculator, many borrowers fail to realize that their payments will eventually double or triple once the full repayment phase begins.

How to use the HELOC Payment Calculator Free

Our heloc payment calculator is designed for instant results. To get an accurate monthly estimate, you will need to input three key variables:

• Current Balance: The total amount you have drawn from your line of credit.
• Interest Rate: Your current variable APR. Most HELOCs are tied to the Fed Funds rate.
• Repayment Term: The number of years you have to pay back the principal once the draw period ends.

Understanding the Draw Period vs. Repayment Period

The draw period is the initial phase (usually 10 years) where you can borrow money. During this time, the heloc payment calculator shows a low monthly cost because you are only paying the interest. Once that term expires, you enter the repayment period. During this second phase, the heloc payment calculator results will show a higher total because you are now paying back the original principal plus interest over a fixed window of time (usually 20 years).

Avoiding Payment Shock with Accurate Planning

One of the most valuable uses of this heloc payment calculator is to simulate your future lifestyle. If your current interest-only payment is $300, but the calculator shows a future payment of $750, you must begin adjusting your budget today. Expert financial planners suggest using a heloc payment calculator to find your future amortized payment and voluntarily paying that higher amount now to reduce your principal early.

HELOC Balance	Interest-Only	Full Repayment	Increase
$25,000	$177.08	$216.94	+$39.86
$50,000	$354.17	$433.88	+$79.71
$100,000	$708.33	$867.75	+$159.42

Are HELOC Interest Payments Tax Deductible?

Under current IRS rules, the interest paid on a HELOC may be deductible only if the funds were used to buy, build, or substantially improve the home that secures the loan. If you use your equity to pay off credit cards or buy a car, the interest is generally not deductible. Always consult a tax professional before relying on heloc payment calculator totals for your tax returns.

HELOC Payment Calculator FAQ

Can the interest rate on a HELOC change?

Yes. Most HELOCs are variable-rate loans. This means that if the Federal Reserve raises rates, your monthly bill in the heloc payment calculator will also increase.

Is there a difference between a HELOC and a Home Equity Loan?

Yes. A Home Equity Loan provides a lump sum with a fixed rate. A HELOC provides a revolving line with a variable rate. Our heloc payment calculator is specifically designed for the revolving version.