HELOC Calculator
Calculate your Home Equity Line of Credit payment, available equity, and compare draw vs repayment period costs.
What is a HELOC?
A Home Equity Line of Credit (HELOC) lets you borrow against your home equity as needed, up to a set limit. It works like a credit card — borrow, repay, and borrow again during the draw period.
Home & Equity Info
HELOC Terms
Draw Period Payment
$0
Interest only during draw period
Repayment Period Payment
$0
Principal + Interest
Your Home Equity
Draw Period Summary
Repayment Period Summary
💡 HELOC Rates USA (2026)
Quick Answer
For a home valued at $400,000 with a $200,000 mortgage balance, drawing $50,000 from a HELOC at 8.5% interest results in an estimated interest-only payment of approximately $354 per month during the draw period. Adjust the calculator above with your own home value and draw amount for a personalized estimate.
HELOC Payment Timeline
| Year | Phase | Monthly Payment | Principal | Interest | Balance |
|---|
What is a HELOC?
Whether you search for "heloc calculator," "home equity calculator," or "home equity line of credit calculator," this tool covers the same purpose - estimating your available credit and monthly payments based on your home's equity.
A HELOC, or Home Equity Line of Credit, is a revolving credit line secured by your home equity, functioning similarly to a credit card. During the draw period, typically 5 to 10 years, you can borrow, repay, and re-borrow up to your credit limit, usually paying interest only on the amount you've actually used rather than the full available credit.
How to Use the HELOC Calculator Step by Step
- Enter your home value — the current estimated market value of your property.
- Enter your mortgage balance — the remaining principal on your existing mortgage.
- Set your maximum LTV ratio — typically 80% to 90% depending on the lender.
- Enter your desired credit line and draw amount — how much you plan to actually borrow.
- Set your draw and repayment periods — commonly 10 years draw, 20 years repayment.
- Review your results — see your interest-only draw period payment, full repayment period payment, and total interest across both phases.
Current HELOC Rates in USA 2026
As of July 2026, HELOC rates in the USA average 8.5% to 9.5%, since most HELOCs carry variable rates tied to the prime rate. Rates depend heavily on your credit score, combined loan-to-value ratio, and the specific lender you choose.
| Credit Score | Average HELOC Rate (2026) |
|---|---|
| 750+ Excellent | 7.5% – 8.5% |
| 700 – 749 Good | 8.5% – 10% |
| Below 700 | 10%+ |
HELOC rates are typically variable and can change over the life of the credit line based on the prime rate.
Draw Period vs Repayment Period
- Draw Period (5-10 years): You can borrow, repay, and re-borrow as needed, typically making interest-only payments on the amount used.
- Repayment Period (10-20 years): The draw period ends, and you make fixed principal-and-interest payments to pay off the outstanding balance.
- Payment Shock: Many borrowers are surprised when payments increase significantly at the transition from interest-only to full repayment.
- Planning Ahead: Understanding both phases helps you budget for the eventual increase in your monthly payment.
HELOC Calculator FAQs
How much equity do I need for a HELOC?
Most lenders require you to maintain at least 15% to 20% equity after the HELOC, meaning your combined mortgage and HELOC balance cannot exceed 80% to 85% of your home's value. For a $400,000 home with a $200,000 mortgage, you could typically access up to $120,000 in HELOC credit.
What is the difference between a HELOC and a home equity loan?
A HELOC is a revolving credit line with a variable rate, ideal for ongoing or uncertain expenses with flexible borrowing over time. A home equity loan provides a lump sum with a fixed rate and predictable payments, better suited for one-time expenses where you know the exact cost upfront.
What happens when my HELOC draw period ends?
Once the draw period ends, you enter the repayment period, during which you can no longer borrow additional funds and must repay both principal and interest on your outstanding balance. This often causes a significant payment increase compared to the interest-only draw period, so plan accordingly.
Is HELOC interest tax deductible?
HELOC interest may be tax deductible if the funds are used to buy, build, or substantially improve the home securing the loan, subject to overall mortgage interest deduction limits. Interest is not deductible if funds are used for other purposes like debt consolidation or personal expenses — consult a tax professional for your situation.
Tips for Using a HELOC Wisely
- Only borrow what you need: Since HELOCs are revolving credit, avoid drawing the full limit unnecessarily.
- Plan for rate increases: Since most HELOCs are variable rate, budget for potential payment increases over time.
- Use for value-adding expenses: Home improvements, debt consolidation, or education often make the most sense financially.
- Understand the repayment period: Know exactly when your draw period ends and prepare for the payment increase.
- Compare with home equity loans: If you need a fixed lump sum, a home equity loan may offer more payment predictability.
HELOC vs Home Equity Loan Comparison
| HELOC | Home Equity Loan | |
|---|---|---|
| Disbursement | Revolving credit line | Lump sum |
| Rate Type | Usually variable | Usually fixed |
| Best For | Ongoing, uncertain expenses | One-time known expenses |
Disclaimer: This calculator provides estimates only and does not constitute financial advice. HELOC rates are variable and may change over time. Contact your lender for exact terms and current rates.