How It Works
Draw period payments are interest-only.
Draw period: interest only = balance × (rate/12) | Repayment: amortized over remaining years
- After draw period, full amortized payment covers principal + interest.
Finance calculator
HELOC Payment Calculator
Calculate your Home Equity Line of Credit (HELOC) payments during the draw period and repayment period.
Enter Your Numbers
$
Amount currently drawn on the HELOC.
%
HELOCs have variable rates tied to Prime Rate.
years
Repayment period after the draw period ends.
Draw Period (interest-only)
$300.00
Formula verified 9 September 2026
Repayment Period Payment
$359.89
Payment Increase at Repayment
$59.89
Total Interest (repayment period)
$46,373.69
Estimate only — not financial advice; lender terms, fees, and taxes vary. Read the full disclaimer ↓
Draw Period vs Repayment Payment
Add your numbers to see the visual breakdown.
Repayment Phase Schedule
Repayment phase only — during the draw period you may pay interest only. Each row totals the principal and interest paid that year and the balance remaining at year-end.
| Period | Principal paid | Interest paid | Ending balance |
|---|---|---|---|
| Year 1 | 749 | 3,570 | 39,251 |
| Year 2 | 819 | 3,499 | 38,432 |
| Year 3 | 896 | 3,422 | 37,535 |
| Year 4 | 980 | 3,338 | 36,555 |
| Year 5 | 1,072 | 3,246 | 35,483 |
| Year 6 | 1,173 | 3,146 | 34,310 |
| Year 7 | 1,283 | 3,036 | 33,027 |
| Year 8 | 1,403 | 2,915 | 31,624 |
| Year 9 | 1,535 | 2,784 | 30,089 |
| Year 10 | 1,679 | 2,640 | 28,410 |
| Year 11 | 1,836 | 2,482 | 26,574 |
| Year 12 | 2,009 | 2,310 | 24,566 |
| Year 13 | 2,197 | 2,122 | 22,369 |
| Year 14 | 2,403 | 1,916 | 19,966 |
| Year 15 | 2,628 | 1,690 | 17,337 |
| Year 16 | 2,875 | 1,444 | 14,462 |
| Year 17 | 3,145 | 1,174 | 11,317 |
| Year 18 | 3,440 | 879 | 7,878 |
| Year 19 | 3,762 | 556 | 4,115 |
| Year 20 | 4,115 | 203 | 0 |
Estimates only — not financial, tax, or professional advice.
100% private — every number you enter is calculated in your browser and never sent to our servers.
What it calculates: Draw Period (interest-only), Repayment Period Payment, Payment Increase at Repayment, Total Interest (repayment period).
Updated 5 June 2026 · Transparent assumptions
Worked Example
$40,000 HELOC at 9%, 20-year repayment.
Draw Period Payment
$300/mo (interest only)
Repayment Payment
~$360/mo
Payment Increase
~$60/mo
Interest-only during the draw period is $300/mo. When repayment starts, the payment rises to about $360/mo to cover principal as well as interest.
How a HELOC Works
Two phases: draw and repayment
A home equity line of credit has two distinct stages. During the draw period you can borrow against the line up to your limit, much like a credit card secured by your home. During the repayment period the line closes to new borrowing and you pay the balance down.
Understanding which phase you are in matters, because the payment behaves very differently in each. The schedule on this page focuses on the repayment phase, when principal is actually retired.
Interest-only, then the payment jump
In many HELOCs the draw period allows interest-only payments. That keeps monthly costs low, but the balance does not shrink because you are not paying down principal.
When repayment begins, each payment must cover principal as well as interest within the remaining term. The result is a noticeable jump in the monthly amount, which can catch borrowers off guard if they have not planned for it.
Variable rates
Most HELOCs use a variable rate tied to an index such as the prime rate. As that index rises or falls, your rate and payment move with it.
This makes a HELOC less predictable than a fixed loan. When you estimate future payments, it is wise to leave room for the rate to climb rather than assuming it stays where it is today.
HELOC versus home equity loan
A home equity loan delivers a fixed lump sum at a fixed rate, with steady payments and a known payoff date. A HELOC is a flexible, revolving line, usually at a variable rate.
Choose the line when you want ongoing access to funds and can handle changing payments. Choose the loan when you need a set amount now and value predictability. Both put your home up as collateral.
Risks to weigh
Because the line is secured by your home, falling behind can put the property at risk. A variable rate can lift payments over time, and the shift from interest-only to full repayment adds further pressure.
Borrowing only what you can comfortably repay, and keeping an equity cushion in case values dip, are the simplest ways to manage these risks.
Practical tips
Paying down principal during the draw period, instead of paying interest only, softens the later payment jump and saves interest. Setting aside savings ahead of the repayment phase also helps.
If the upcoming payment looks unmanageable, talk to your lender before the draw period ends about refinancing or other options. Knowing the future payment in advance, as this calculator shows, gives you time to plan.
Assumptions & Best Uses
- Interest-only payments during draw period.
- Fixed rate (actual HELOCs have variable rates).
Limitations
- Variable rate HELOCs will have different payments when rate changes.
Frequently Asked Questions
What happens when the HELOC draw period ends?
After the draw period (often around 10 years), you can no longer draw funds and must begin repaying the balance. Payments typically jump, because you now cover both principal and interest instead of interest alone. The repayment schedule below shows how that phase pays down.
What is the difference between the draw period and the repayment period?
During the draw period you can borrow against the line and usually pay interest only on what you have drawn. During the repayment period the line closes to new borrowing and you pay down the balance in amortizing installments. This calculator shows the interest-only draw payment and the larger repayment payment.
Why does my HELOC payment jump after the draw period?
In the draw period your payment may cover only interest, so the balance stays flat. When repayment begins, each payment must also retire principal within the remaining term, which raises the amount due, sometimes sharply. Planning for that increase ahead of time avoids a shock.
Are HELOC rates fixed or variable?
Most HELOCs carry a variable rate tied to an index such as the prime rate, so your payment can rise or fall as that index moves. This calculator uses a single rate for clarity; in practice, build in room for the rate to change.
How is a HELOC different from a home equity loan?
A home equity loan is a lump sum at a fixed rate with predictable payments. A HELOC is a revolving line you draw from as needed, usually at a variable rate. The line offers flexibility; the loan offers certainty. Both are secured by your home.
What are the risks of a HELOC?
Because the line is secured by your home, missed payments can put the property at risk. A variable rate means payments can climb, and the jump from interest-only to full repayment can strain a budget. Borrowing only what you can repay, and leaving an equity cushion, reduces these risks.
How can I prepare for the repayment phase?
You can pay down principal during the draw period rather than paying interest only, set aside savings for the higher payment, or talk to your lender about refinancing options before the draw period ends. Knowing the future payment in advance, as shown here, makes planning easier.
Sources & References
Figures on this page are checked against primary, authoritative sources. Links open in a new tab.
- What is a home equity loan? — also explains the home equity line of credit (HELOC) it is compared withConsumer Financial Protection Bureau · verified 2026-06-04
- What does APR mean? — the variable annual rate a HELOC payment is built onConsumer Financial Protection Bureau · verified 2026-06-04
Finance disclaimer
Results are estimates based on the figures you enter and standard formulas. Rates, fees, taxes, and lender terms vary and change over time, so confirm important numbers with your lender or a qualified professional. This is educational information, not financial advice.
How we calculate · Found an error? email us
What's changed (2 updates)
Published 9 September 2026
- Published the calculator with its formula, worked example, assumptions, limitations and FAQs, and added an automated formula test suite covering it.
- Confirmed by simulation that draw-period payments leave the balance exactly unchanged, which is what makes the step-up to the repayment payment the number worth showing.