HELOC Calculator
$0.00 / month during draw period
| Year | Phase | Principal Paid | Interest Paid | Ending Balance |
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How a HELOC's Two Phases Work
A home equity line of credit typically has two phases. During the draw period, you can borrow against the line as needed and usually pay interest only on the outstanding balance, which keeps payments low but doesn't reduce what you owe. Once the draw period ends, the HELOC converts to the repayment period, where the remaining balance is amortized into fixed principal-and-interest payments over the repayment term. This calculator assumes you draw the full amount up front and make interest-only payments throughout the draw period, then fully amortize the balance during repayment — the most common way lenders structure these estimates, though real HELOCs with variable draws will differ.
How Much You Can Actually Borrow
Lenders generally cap your combined mortgage and HELOC balance at a maximum combined loan-to-value ratio (commonly 80-85% of your home's value). The calculator shows this available credit line so you can check your planned draw amount against what a lender would likely approve. If you're unsure how much equity you have to work with, the home equity loan calculator can help you compare a lump-sum alternative.
Watch Out for Payment Shock
Because draw-period payments only cover interest, your payment can jump significantly when repayment begins and principal is added in — especially on larger balances or variable rates that have risen since you opened the line. Before committing to a HELOC, it's worth running the numbers through a debt payoff calculator to see how the higher repayment-period payment fits your budget.
Frequently Asked Questions
Do I have to draw the full HELOC amount at once?
No, real HELOCs let you draw funds as needed during the draw period, and interest only accrues on what you've actually borrowed. This calculator assumes a full draw up front to give you a consistent worst-case estimate of payments and total interest.
Why does my payment jump so much after the draw period ends?
During the draw period you typically pay interest only, so the balance never shrinks. When repayment begins, your payment must cover both principal and interest over a shorter remaining term, which is why it's common to see the payment roughly double or more at that transition.