MortgageIQ

HELOC Calculator

Calculate payments for your Home Equity Line of Credit — draw period and repayment.

Draw payment $328/mo → Repayment $374/mo

A HELOC works like a credit card — borrow what you need, when you need it, during the draw period. Unlike a fixed home equity loan, payments start interest-only.

Your Home Equity

Current Home Value$450,000
Current Mortgage Balance$280,000
Credit Line Amount$75,000

Max available: $102,500

HELOC Terms

Introductory Rate (first 12 mo)6.99%
Intro Rate Period12 months
Current Prime Rate

8.5%

Your Margin2%

Your rate after intro: 10.50%

Draw Period10 years
Repayment Period20 years

Your Usage

Initial Draw Amount$37,500
Additional Monthly Draws$0/mo

During draw period

Tax Rate28%

✓ You qualify

Your combined LTV of 78.9% is within the 85% maximum. You qualify for a HELOC.

LTV 62.2%·CLTV 78.9%· Max 85%

Draw Period — 10 years

$328.12/mo

Interest only on drawn amount

Rate: 6.99% intro, then 10.50%

Repayment Period — 20 years

$374.39/mo

Principal + interest (fully amortizing)

Payment change: +$46.27/mo

Draw Period Interest

$38,059

Repayment Interest

$52,354

Total Interest

$90,413

Max Credit Line

$102,500

HELOC Timeline

Draw PeriodRepayment Period

Rate Risk Analysis

ScenarioDraw PaymentRepayment PaymentTotal Interest
Rates Stay Same$328.12$374.39$90,413
Rates Rise +1%$328.12$399.91$100,287(+$9,874)
Rates Rise +3%$328.12$452.77$120,472(+$30,060)
Rates Fall -1%$328.12$349.55$80,701(-$9,712)

HELOC vs Home Equity Loan

HELOC

  • Rate: Variable
  • Payment: Interest-only during draw
  • Flexibility: High
  • Best for: Ongoing projects

Home Equity Loan

  • Rate: Fixed
  • Payment: Fixed from day 1
  • Flexibility: Low
  • Best for: One-time expense
Compare with Home Equity Loan Calculator →
MonthBalancePaymentRate
1$37,500$218.446.99%
2$37,500$218.446.99%
3$37,500$218.446.99%
4$37,500$218.446.99%
5$37,500$218.446.99%
6$37,500$218.446.99%
7$37,500$218.446.99%
8$37,500$218.446.99%
9$37,500$218.446.99%
10$37,500$218.446.99%
11$37,500$218.446.99%
12$37,500$218.446.99%
13$37,500$328.1210.50%
14$37,500$328.1210.50%
15$37,500$328.1210.50%
16$37,500$328.1210.50%
17$37,500$328.1210.50%
18$37,500$328.1210.50%
19$37,500$328.1210.50%
20$37,500$328.1210.50%
21$37,500$328.1210.50%
22$37,500$328.1210.50%
23$37,500$328.1210.50%
24$37,500$328.1210.50%

Compare HELOC Rates

Find the best home equity line of credit for your needs.

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Frequently Asked Questions

How does a HELOC work?▾
A HELOC has two phases: a draw period (typically 10 years) where you borrow as needed and pay interest only, and a repayment period (typically 20 years) where you pay principal and interest on the outstanding balance. Rates are usually variable, tied to prime plus a margin.
What happens when a HELOC draw period ends?▾
When the draw period ends, you can no longer borrow additional funds. Your outstanding balance converts to a fully amortizing loan with principal and interest payments. Payments often increase significantly — our calculator shows the exact payment jump.
What is the current HELOC rate?▾
HELOC rates are typically prime rate plus 0.5–2.5% margin. With prime around 8.5%, fully indexed rates are often 9–11%. Many lenders offer introductory teaser rates for 6–12 months. Our calculator models intro and indexed rates separately.
Can I pay off a HELOC early?▾
Yes. Most HELOCs allow early payoff without penalty, though some charge fees if you close the line within 1–3 years of opening. Paying off during the draw period stops interest charges on the repaid balance.
Is HELOC interest tax deductible?▾
HELOC interest may be deductible when funds are used to buy, build, or substantially improve your home, subject to the $750,000 total mortgage debt limit. Interest on funds used for other purposes is generally not deductible.

What's Next?

Keep going — here's what most people calculate next.

Compare with a home equity loan →

Fixed rate vs variable — see which fits your project better.

Explore refinance options →

Cash-out refinance may be an alternative to a HELOC.

Or explore all calculators

Home Equity Loan Calculator →

Fixed-rate lump sum alternative

Mortgage Affordability →

How much house can you afford?