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Home Equity Line of Credit (HELOC) Calculator

Estimate interest-only draw payments, repayment-period payments, fees, and an LTV-based HELOC limit.

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Inputs

Enter the values you know. Optional fields may be left empty.

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Required
$
Required
%
Required
years
Required
years
Spread evenly across monthly outlays.
$
Required
$
Required
$
Required
%

Result

Updates as valid inputs change.

Calculated locally
This model assumes the full line is drawn immediately and the interest rate stays unchanged.
Draw-period monthly outlay
Repayment-period monthly outlay
Total scheduled monthly outlays
Total interest
Closing + annual fees
Interest + fees
Proceeds received
Cash due at closing
Cash-flow APR estimate
LTV-based HELOC limit
Combined LTV with this draw

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Calculation steps

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  1. 1

    Formula selected

    The calculator uses the following formula or method.

    Draw payment = balance × r; repayment M = P × [r(1 + r)ⁿ] ÷ [(1 + r)ⁿ − 1]

    The draw period is modeled as interest-only. Annual fees are divided into monthly outlays, and the rate is held constant.

  2. 2

    Values entered

    Your values are placed into the calculation.

    Enter values to see what is used in this step.

  3. 3

    Result calculated

    The formula or method produces the following result values.

    Results will appear after a successful calculation.

  4. 4

    Answer formatted

    Displayed values are rounded and formatted using each output’s configured precision.

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How it works

The calculator separates a HELOC into two phases. During the draw period, it assumes the entire entered amount is outstanding and the required payment is interest-only. During the repayment period, no further borrowing occurs and the balance is repaid with level monthly principal-and-interest payments.

The model also estimates a maximum line from the home’s value, current mortgage balance, and the selected combined loan-to-value limit.

Input query strings and outputs

Use an input name in this page’s URL as ?name=value, and join additional inputs with &. Portable shared links may instead use the compact ?ac= state parameter.

Input query strings

12
  • ?creditLine= Amount drawn

    Money · Required · Default: 50,000

  • ?annualRate= Interest rate

    Percentage · Required · Default: 8

  • ?drawYears= Draw period

    Number · Required · Default: 5

  • ?repaymentYears= Repayment period

    Number · Required · Default: 15

  • ?annualFee= Annual fee

    Money · Optional · Default: 0

  • ?includeClosingCosts= Include closing costs

    True or false · Optional · Default: false

  • ?closingCostValue= Closing cost value

    Number · Required · Default: 2 · Used when includeClosingCosts = true

  • ?closingCostUnit= Closing cost unit

    Choice · Required · Default: percent · Accepted values: percent, amount · Used when includeClosingCosts = true

  • ?closingCostTreatment= Closing cost treatment

    Choice · Required · Default: deducted · Accepted values: deducted, upfront · Used when includeClosingCosts = true

  • ?homeValue= Current home value

    Money · Required · Default: 500,000

  • ?mortgageBalance= Current mortgage balance

    Money · Required · Default: 210,000

  • ?maxLtv= Maximum combined LTV

    Percentage · Required · Default: 80

Outputs

11
  • drawMonthlyPayment Draw-period monthly outlay

    Currency · Primary output

  • repaymentMonthlyPayment Repayment-period monthly outlay

    Currency

  • totalScheduledPayments Total scheduled monthly outlays

    Currency

  • totalInterest Total interest

    Currency

  • totalFees Closing + annual fees

    Currency

  • totalBorrowingCost Interest + fees

    Currency

  • cashReceived Proceeds received

    Currency

  • cashDueAtClosing Cash due at closing

    Currency

  • estimatedApr Cash-flow APR estimate

    Percentage

  • estimatedCreditLimit LTV-based HELOC limit

    Currency

  • combinedLtv Combined LTV with this draw

    Percentage

Fees and closing costs

Annual fees are divided by twelve and added to each monthly outlay. Closing costs can be entered as a percentage or dollar amount and treated either as a deduction from proceeds or as cash paid upfront. The cash-flow APR estimate includes those entered costs for comparison, but it is not a lender disclosure.

Reading the payment change

The repayment-period payment is normally higher because it must reduce principal as well as cover interest. The chart keeps the balance flat through the draw years and then shows the modeled decline during repayment.

Important assumptions

This is a deliberately simplified comparison model. It assumes:

  • the full line is drawn immediately;
  • no principal is repaid or redrawn during the draw period;
  • the interest rate never changes;
  • annual fees remain constant; and
  • all payments are made on schedule.

Real HELOCs may use variable rates, minimum-payment rules, introductory rates, transaction fees, inactivity fees, early-closure fees, or balloon payments. Review the lender’s disclosures and test a higher rate before relying on the payment estimate.

Sources
Limitations
  • This model assumes the full line is drawn immediately and the interest rate stays unchanged.
  • The draw period is modeled as interest-only. Annual fees are divided into monthly outlays, and the rate is held constant.
  • Estimates use the rates, timing, and assumptions entered. Fees, taxes, lender rules, and future changes are included only where explicitly shown.