A HELOC offers flexible access to home equity. During the draw period you typically pay interest only, then the repayment period begins with full amortized payments. Our calculator shows costs for both phases.
Repayment Payment:
Total Interest:
How to Use This Tool
Enter your total credit limit.
Enter the amount you plan to draw.
Enter the annual interest rate (variable).
Enter draw period length in years.
Enter repayment period length in years.
Click Calculate.
The Formula
Draw period: interest-only = Drawn Amount x Monthly Rate. Repayment: standard amortization formula with remaining balance over repayment term.
Why It Matters
Your home is worth $500,000 with a $200,000 mortgage. You can access $50,000 through a HELOC at 7.5% to fund a $30,000 kitchen renovation. During the 10-year draw period you pay only $188/month in interest. Then the 15-year repayment phase begins with a $1,750/month payment.