How the HELOC Payment Calculator works
Estimate interest-only and repayment HELOC payments. Adjust the inputs above, then use the calculate button to generate a fresh estimate based on the numbers you entered.
The result is designed to give you a quick planning number, plus a short breakdown of the major figures behind it. You can reset the form at any time and try a different scenario.
When to use this calculator
Use this HELOC payment calculator to estimate both interest-only and repayment payments on a home equity line of credit. It is helpful for seeing the difference between carrying a balance and actively paying it down.
Formula
Interest-only payment = HELOC balance x annual rate / 12
- HELOC balance is the amount currently borrowed.
- Annual rate is converted into a monthly interest rate.
- Repayment term estimates an amortized payment if you choose to pay down principal.
Worked example
For a $75,000 HELOC balance at 8%, the calculator estimates the monthly interest-only cost and a repayment payment over the selected term.
Common mistakes
- Focusing only on the interest-only payment and never reducing principal.
- Assuming the HELOC rate will stay fixed.
- Using a HELOC for spending that does not fit the repayment plan.
FAQs
Why is the interest-only payment lower?
It covers interest for the month but does not reduce the balance.
Can HELOC rates change?
Often yes. Many HELOCs have variable rates, so payments can rise or fall.
Should I use the repayment estimate?
Use it to test what paying down principal could look like over a chosen timeline.