HELOC Calculator
See what a HELOC costs during the draw and repayment periods.
How a HELOC works
A home equity line of credit works like a credit card secured by your home. During the draw period, often 10 years, you can borrow as needed and may pay only interest. Then the repayment period starts and you pay back principal and interest, so the payment jumps.
Example
A 50,000 balance at 9% costs about 375 a month interest-only during a 10-year draw period. In the 20-year repayment period the payment rises to about 450, and total interest over both periods is about 102,967.
This assumes you draw the full amount at the start and the rate stays fixed. In real life, most HELOCs have variable rates, so payments can rise or fall. Plan for the higher repayment-period payment before you borrow.
Frequently asked questions
Are HELOC rates fixed?
Usually variable, tied to a benchmark rate. Some lenders let you fix part of the balance.
Is interest tax-deductible?
Only in some situations, such as home improvements, and rules vary by country. Ask a tax professional.
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