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HELOC Payment Calculator

📅Last updated: October 11, 2025
✓Reviewed by: LumoCalculator Team

Calculate monthly payments and total costs for your Home Equity Line of Credit. Compare interest-only versus principal-interest payment options to make informed decisions.

HELOC Payment Calculator

Calculate your Home Equity Line of Credit payments and total costs.

Payment Results

Monthly Payment
$871.11
Principal + Interest
Interest-Only Payment
$541.67
For comparison
Total Interest:$56,799.33
Total Payments:$156,799.33
Monthly Interest Rate:0.5417%
Number of Payments:180

Payment Breakdown

• Monthly payments include both principal and interest
• Principal balance decreases over time
• Credit line fully repaid at end of term

How HELOC Payments Work

HELOC Structure

• Draw Period: Typically 5-10 years, often interest-only payments
• Repayment Period: 10-20 years, principal + interest payments
• Variable Rate: Interest rate can change over time
1

Determine your available credit

Based on home value, existing mortgage, and lender's loan-to-value limits

2

Choose your payment structure

Interest-only during draw period or immediate principal + interest

3

Calculate your payments

Use current interest rate and desired repayment term

Payment Options Comparison

Interest-Only Payments

  • • Lower initial payments
  • • Principal balance unchanged
  • • Common during draw period
  • • Higher long-term costs

Principal + Interest

  • • Higher monthly payments
  • • Reduces principal balance
  • • Builds equity over time
  • • Lower total interest cost

Example Scenarios

Standard HELOC

Typical home equity line of credit with principal and interest payments

Credit Limit: $100,000
Interest Rate: 7%
Term: 15 years
Payment Type: Principal + Interest

Interest-Only HELOC

Interest-only payments during draw period

Credit Limit: $150,000
Interest Rate: 6.5%
Term: 10 years
Payment Type: Interest Only

Large Credit Line

Large HELOC with extended repayment term

Credit Limit: $300,000
Interest Rate: 7.5%
Term: 20 years
Payment Type: Principal + Interest

Important Considerations

⚠️ Risk Warning

HELOCs use your home as collateral. Failure to repay could result in foreclosure. Variable rates can increase your payments over time.

Risks

  • • Variable interest rates
  • • Home used as collateral
  • • Potential payment shock
  • • Temptation to overspend

Benefits

  • • Access to large credit amounts
  • • Flexible borrowing and repayment
  • • Potentially tax-deductible interest
  • • Lower rates than credit cards

Frequently Asked Questions

What is a HELOC?
A Home Equity Line of Credit (HELOC) is a revolving credit line secured by your home's equity. You can borrow against your home's value minus what you owe on your mortgage.
What's the difference between interest-only and principal-interest payments?
Interest-only payments only cover the interest charges, keeping the principal balance unchanged. Principal-interest payments reduce both the interest and principal balance over time.
How is a HELOC different from a home equity loan?
A HELOC is a revolving credit line where you can borrow as needed up to your limit. A home equity loan provides a lump sum with fixed payments. HELOCs typically have variable rates.
What are the risks of a HELOC?
Main risks include variable interest rates that can increase payments, using your home as collateral, and potential for overspending due to easy access to credit.

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