HELOC Calculator
Estimate payments during the draw and repayment periods for a home equity line of credit.
What is a HELOC?
A Home Equity Line of Credit (HELOC) is a revolving line of credit secured by your home equity. It has two phases: a draw period when you can borrow and often pay interest only, and a repayment period when you must pay back principal plus interest.
How to Use This Calculator
- Enter your total credit line limit and initial draw amount.
- Set the draw and repayment periods.
- Input the annual interest rate.
- Optionally add a monthly principal payment during the draw period.
- Click Calculate to see payment estimates.
FAQ
What is the draw period?
The draw period is the time you can access funds from your HELOC, typically 5 to 10 years. Minimum payments are usually interest-only.
What happens during the repayment period?
After the draw period ends, you can no longer borrow. The remaining balance is amortized over the repayment term with principal and interest payments.
Can I make principal payments during the draw?
Yes. Many lenders allow principal payments during the draw period, which reduces your balance and future payments.
Is HELOC interest tax deductible?
It may be deductible if the funds are used to buy, build, or substantially improve the home securing the loan. Consult a tax advisor.