A HELOC (Home Equity Line of Credit) is a revolving credit line secured by your home. You can borrow up to your limit during the draw period, and most lines offer interest-only payments while you draw.

What happens after the HELOC draw period?

After the draw period ends, you enter the repayment period. You can no longer borrow, and your payments rise sharply because you now repay principal plus interest on the full balance.

HELOC Payment Calculator

Estimate interest-only and fully amortized payments.

HELOC Details

Credit Limit ($)

Interest Rate (% p.a.)

Usually variable

Draw Period (years)

yrs

Repayment Period (years)

yrs

Interest-Only During Draw Period

Interest-Only Payment (Draw Period)

—

Draw Period Payment

—

Repayment Period Payment

—

Est. Total Interest

—

Est. Total Paid

—

How HELOC payments work

During the draw period (typically 10 years) you may borrow repeatedly up to your limit. With interest-only payments, you pay just the monthly interest — small payments, but the balance stays full. In the repayment period, you can no longer borrow and payments jump because you repay principal plus interest over the remaining term.

HELOC Calculator FAQ

Are HELOC rates fixed or variable?▶

Most HELOCs use a variable rate tied to a benchmark index, so your payment can change. Some lenders offer fixed-rate options for a portion of the balance.

Why is my HELOC payment so much higher after the draw period?▶

Because you stop paying interest-only and start repaying the principal too, over a shorter time. This calculator shows both payments so you can plan for the jump.

HELOC: Revolving home-equity credit

Draw period: Usually 5–10 years

Repayment: 10–20 years after

Variable rate: Prime + margin

HELOC Calculator — draw, repayment and costs

A HELOC (Home Equity Line of Credit) lets you draw against your home equity as needed during a draw period, then repay over a longer term. This calculator models both the interest-only draw phase and the amortizing repayment phase.

How a HELOC works

Draw period (typically 10 years): borrow as needed, often paying interest only on the drawn amount.

Repayment period (typically 10–20 years): pay principal + interest to clear the balance.

Rate is usually variable: 8% to 12% depending on the prime rate and your credit (in India, personal loan against property lines behave similarly).

The danger of interest-only payments

Interest-only draws feel cheap but the principal is deferred to the repayment phase — your payment can triple when it begins.

A $20,00,000 draw at 9% costs ~$15,000/month interest-only, then ~$25,000/month once principal amortizes over 10 years.

Plan the repayment-phase payment before drawing — this calculator makes it visible.

How to use this calculator

Enter the HELOC amount you plan to draw.
Enter the annual rate (draw period).
Set the draw period years and repayment years.
Read the interest-only payment, repayment payment and total cost.

Pro tips

Keep HELOC use to value-building projects; a variable rate can bite.
Convert to a fixed-rate home equity loan if rates start climbing.
Never draw for vacations or shopping — repurpose your budget instead.

Frequently asked questions

What is the difference between a HELOC and home equity loan?▶

A HELOC is a variable-rate credit line you can draw repeatedly during a draw period, then repay. A home equity loan is a fixed-rate, fixed-amount lump sum repaid immediately.

How is HELOC interest calculated?▶

Interest is charged daily on your outstanding balance at the variable rate (prime + margin) — not on the full credit limit unless fully drawn.

HELOC Calculator