Home equity line of credit scenarios
HELOC draw and repayment payment calculator
Estimate interest-only draw-period payments and repayment-period payments at entered HELOC rates, with a higher-rate scenario and clear variable-rate caveats.
Estimate payments for an entered HELOC balance under separate draw-period and repayment-period assumptions. The result is a simplified scenario, not a lender quote or a prediction of a variable rate.
Enter a balance and the terms you want to explore, then calculate.
The draw estimate assumes the full balance is outstanding from the start and you pay interest only, with no additional draws or principal payments. The repayment estimates amortize that same balance over the entered term at a constant rate. Rates can change under your agreement; actual minimum payments, fees, rate caps, payment dates, and balloon or other repayment terms may differ.
How the HELOC payment scenarios work
The draw-period estimate is the entered balance multiplied by the annual rate divided by 12. Its total modeled interest assumes that balance and rate stay unchanged for every draw-period month. Each repayment estimate uses the standard amortization formula: payment = balance × monthly rate ÷ [1 − (1 + monthly rate)−number of monthly payments]. Here, monthly rate is the entered annual rate divided by 1,200; when the rate is 0%, the payment is balance divided by the number of payments. The alternative-rate scenario is a what-if input, not a forecast or a stated rate cap.
For example, the default $50,000 balance and 8% draw rate produce an estimated $333.33 monthly interest-only payment, or $40,000 over 120 months if the balance and rate never change. If that same $50,000 balance then entered a 20-year repayment period at 8%, this model gives a $418.22 monthly principal-and-interest payment. At the entered alternative rate of 10%, it gives $482.51. These are illustrative outputs from the stated assumptions, not quoted HELOC terms; actual draw balances, variable rates, and repayment rules can differ.
HELOC plans vary. The CFPB says the draw period generally allows borrowing up to the line limit, while the repayment period ends new borrowing and may require repayment over a schedule or, in some cases, as a lump sum. Payments may rise when repayment begins, and variable rates can change payments. Review the plan disclosures for the draw and repayment lengths, minimum-payment formula, rate-change terms and fees. CFPB guidance checked November 4, 2026: What is a HELOC? and What you should know about HELOCs.
A HELOC is secured by your home. The CFPB warns that falling behind or being unable to repay can put the home at risk. Compare the actual payment rules and possible rate changes with your budget before borrowing. This estimate does not assess eligibility, available credit, fees, tax treatment, or whether a HELOC is suitable for you.
Considering a HELOC to access home equity? Read our cash-out refinance versus HELOC comparison before comparing offers. A refinance replaces your first mortgage; a HELOC generally leaves it in place and adds a separate credit line.
How it works
Enter an outstanding balance and the draw and repayment assumptions from a HELOC offer. The calculator assumes interest-only draw payments, no additional draws, and a constant entered rate in each scenario.
Good to know
How are the draw-period payments modeled?
The tool assumes the full entered balance is outstanding for the entire draw period and that each payment covers interest only. Actual plans may require principal payments or calculate minimum payments differently.
Why can the payment change when repayment begins?
The draw period may allow borrowing while repayment ends new borrowing and requires the balance to be repaid under the plan. CFPB guidance says payments are often significantly higher in repayment; some plans may require a lump-sum payoff.
Does the higher-rate result predict my future payment?
No. It is a what-if scenario using the rate you enter. HELOC rates are usually variable, so review the agreement for the index, margin, adjustment timing, caps, minimum payment formula, fees, and repayment terms.
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