HELOC Payment Calculator (Draw and Repayment Periods)
Enter the amount drawn, the rate and the draw and repayment periods.
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HELOC Payment Calculator (Draw and Repayment Periods) by TheCalcTools
How the HELOC Payment Calculator (Draw and Repayment Periods) works
During the draw period you can borrow and usually pay only interest: balance × rate ÷ 12. When the draw period ends, the balance is repaid with principal and interest over the repayment period, so the payment jumps.
HELOC rates are usually variable and tied to the prime rate, so payments can change. Your home is the collateral.
The formula
Worked example
Using the default values shown in the calculator:
| Amount drawn | $50000 |
|---|---|
| Interest rate (variable) | 8.25 % |
| Draw period (years, interest-only) | 10 |
| Repayment period (years) | 20 |
- Drawing 50,000 at 8.25%: $343.75 a month interest-only for 10 years.
- Then $426.03 a month for 20 years; total interest $93,497.88.
Result:
| Payment during the draw period | $343.75 |
|---|---|
| Payment during repayment | $426.03 |
| Payment increase at the switch | $82.28 |
| Total interest | $93,497.88 |
Frequently asked questions
What is payment shock?
The jump when interest-only ends. Here it is the difference between the two payments; plan for it or pay principal early.
Sources and further reading
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This calculator gives estimates for information only. It is not financial advice, and your lender's or provider's figures will govern. Rates, fees and rules vary. See our disclaimer.
