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HELOC Calculator

HELOC payment math. See your interest-only draw-period payment and the much higher amortizing payment that kicks in when the draw period ends.

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HELOC Calculator
HELOC math has two phases: an interest-only draw period and an amortizing repayment period. The monthly payment usually doubles or more when the draw period ends — this calculator shows both clearly.

$50,000

7.260% APR (variable)

Default 7.26%Bankrate — Current HELOC Ratesas of May 2026

10 years interest-only

20 years amortizing

Draw period

$302.50

interest-only / mo

Repayment period

$395.49

P+I / mo (amortizing)

Payment jump

$92.99/mo

1.3× higher

Draw interest paid

$36,300

Total interest (full life)

$81,218

The payment shock: During the 10-year draw period the payment is just $302.50/mo. When that ends, the full balance amortizes over 20 years — the payment jumps to $395.49/mo, a 1.3× increase. Plan ahead for this. HELOCs also have variable rates that can rise during your loan.
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HELOC
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📉 $302.50/mo draw

$50,000 HELOC @ 7.260% with a 10-year interest-only draw period.

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The HELOC Calculator models the two-phase structure of a Home Equity Line of Credit: an interest-only draw period (typically 10 years) then an amortizing repayment period (typically 20 years). When the draw period ends, the monthly payment usually DOUBLES — most HELOC users are caught off guard. This calculator shows both phases clearly so the payment shock isn't a surprise.

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How this calculator works

  1. Enter your HELOC balance during the draw period.
  2. Enter the current interest rate (HELOCs adjust monthly with prime — check your statement).
  3. Set the draw period length (10 years is most common) and repayment period (typically 20 years).
  4. Compare the two payment phases. Draw is interest-only and small; repayment is amortizing and much higher. Plan for the transition.

draw_payment = balance × (APR/12) repayment_payment = balance × [r(1+r)ⁿ / ((1+r)ⁿ − 1)]

Two distinct formulas. During the draw period (~10 years), you pay only interest — the balance doesn't decline. When repayment starts, the full balance amortizes over the remaining term (typically 20 years), so the monthly payment is the standard amortization formula. The variable rate (tied to prime) means actual payments can move during the loan.

balance
Outstanding HELOC balance
APR
Annual percentage rate (variable, tied to prime)
r
Monthly rate (APR/12)
n
Number of payments in the repayment phase (years × 12)

Frequently asked questions

A Home Equity Line of Credit. A revolving credit line secured by your home, with two phases: an interest-only 'draw period' (commonly 10 years) and an amortizing 'repayment period' (commonly 20 years). Variable rate tied to prime.

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Sources
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National Avg Savings APY — 0.38% (as of May 2026)FDIC National Rates and Rate Caps High-Yield Savings (typical) — 4% (as of May 2026)FDIC National Rates + reported HYSA APY (top online banks) S&P 500 — 10% (as of 2026 (1928–2025 dataset))NYU Stern (Damodaran) — S&P 500 Annual Returns 1928–2025 Total US Stock Market — 9.7% (as of 2026)CRSP US Total Market Index (long-run avg) 10-Year Treasuries — 4.5% (as of May 2026)Federal Reserve FRED — 10-Year Treasury (DGS10) US Real Estate — 4.2% (as of 2026)S&P CoreLogic Case-Shiller US National Home Price Index (FRED) Gold — 7.8% (as of 2026)World Gold Council historical price data Long-run CPI Inflation — 3% (as of 2026)Bureau of Labor Statistics — CPI-U (long-run avg) 30-Year Fixed Mortgage — 6.36% (as of May 2026)Freddie Mac PMMS — 30-Year Fixed Rate Mortgage Average Credit Card APR (avg, accounts assessed interest) — 21.52% (as of May 2026 release (March 2026 data))Federal Reserve G.19 — Consumer Credit Auto Loan (60-month new car, avg) — 7.52% (as of May 2026 release (March 2026 data))Federal Reserve G.19 — Consumer Credit Personal Loan (24-month unsecured, avg) — 11.4% (as of May 2026 release (March 2026 data))Federal Reserve G.19 — Consumer Credit Federal Direct Subsidized/Unsubsidized (Undergrad) — 6.52% (as of AY 2026-27)US Dept of Education — Interest Rates and Fees for Federal Student Loans HELOC (typical introductory rate) — 7.26% (as of May 2026)Bankrate — Current HELOC Rates 12-month CD (top online rate, typical) — 4.1% (as of May 2026)FDIC + reported top online CD rates Mortgage Refinance Closing Costs (typical) — 3% (as of 2026)Freddie Mac — Cost of Refinancing College Tuition Inflation (long-run avg) — 4% (as of AY 2025-26 (Nov 2025 publication))College Board — Trends in College Pricing 2025