Home buying · Free calculator
HELOC Calculator
Free HELOC calculator. Estimate your draw-period and repayment-period payments, available credit limit, and total interest on a home equity line of credit.
Draw & repayment payments · Available credit · Rate stress test
01 / Set your scenario
Your inputs
Enter your values, then calculate your estimate.
Try an example
02 / Review your estimate
Estimated results
Change the inputs to explore a different scenario.
Annual summary
| Year | Phase | Payment/mo | Interest paid | Principal paid | End balance |
|---|
Most HELOCs carry a variable rate tied to the prime rate — your payment can rise even without drawing more money. See how a rate increase would change your payments.
| Rate | Draw payment | Repayment payment |
|---|
What Is a HELOC, and How Does It Work?
A home equity line of credit (HELOC) is a revolving credit line secured by your home, typically capped at 80%–85% of your home's value minus what you still owe on your mortgage. Unlike a home equity loan, which hands you one lump sum upfront, a HELOC works more like a credit card: you draw what you need, repay it, and can borrow again during the draw period, and you only pay interest on what you've actually used.
Every HELOC runs through two phases. First is the draw period, usually 5–10 years, when you can pull money out as needed and often only have to cover interest each month. Then comes the repayment period, typically 10–20 years, when the borrowing stops and you start paying down both principal and interest. That transition is where payments can jump sharply, so it's worth planning for the higher repayment-period number well in advance — this calculator shows both side by side.
Because most HELOCs carry a variable rate tied to the prime rate, your payment can rise even if you haven't drawn a single extra dollar. Use the Rate stress test tab above to see how a rate increase would affect both your draw-period and repayment-period payments before you commit.
Tips for using this HELOC calculator
Don't confuse "available" with "affordable"
Lenders may approve you for the full 80%–85% CLTV limit, but that's a borrowing ceiling, not a spending target. Compare the repayment-period payment against your budget, not just the low draw-period number.
Plan for the payment jump
If you choose interest-only during the draw period, your payment will rise — sometimes sharply — once the repayment period begins. Check the Schedule tab to see the exact month this happens.
Stress-test the rate, not just today's number
Most HELOCs are variable-rate. Use the Rate stress test tab to check your payment at +1%, +2%, and +3% before you draw, so a rate hike doesn't catch you off guard.
Draw only what you need
Every dollar drawn accrues interest immediately, even during the interest-only period. Adjust the draw amount slider to see how a smaller draw lowers both payments and total interest.
Frequently asked questions
What does HELOC stand for?
Home equity line of credit — a revolving credit line secured by your home that lets you borrow against your equity as needed, rather than in one lump sum.
Is a HELOC a trap?
Not inherently, but it can function like one if you borrow more than you can comfortably repay or treat the credit line as extra income rather than debt against your house. The real risk is a rising variable rate combined with the principal payments that kick in once the repayment period starts.
How is a HELOC different from a home equity loan?
A HELOC gives you a revolving line you draw from as needed, usually at a variable rate. A home equity loan gives you one lump sum upfront at a fixed rate with a predictable payment from day one.
Is HELOC interest tax deductible?
Only if you use the funds to buy, build, or substantially improve the home securing the loan, and only up to the IRS's combined mortgage debt limit. Check with a tax professional for your specific situation.
More free finance tools from FinToku
Mortgage & Home Loan Calculator
Work out your monthly mortgage payment, including taxes, insurance, and PMI.
EMI Calculator
Calculate a monthly installment loan payment with reducing balance or flat rate methods and a full amortization schedule.
Loan Comparator
Compare loan offers from multiple lenders side by side to find the lowest rate and most affordable plan.
Rent vs. Buy Calculator
See whether renting or buying makes more financial sense for your situation over time.
Budget Planner & 50/30/20 Calculator
Check how a new HELOC payment fits into your broader monthly budget.
FD Calculator
Calculate fixed deposit maturity value and interest earned, and compare rates across banks.
Sources & further reading
FinToku – What Is a HELOC? How It Works & Current Rates (2026)
Current HELOC rate snapshots, borrowing-limit math, HELOC vs. home equity loan comparison, and qualification requirements.
CFPB – Understanding Your Loan Estimate
The Consumer Financial Protection Bureau explains how to read APR, fees, and monthly payment disclosures.
IRS Publication 936 – Home Mortgage Interest Deduction
Official guidance on when HELOC and home equity loan interest may be tax-deductible.
Disclaimer
This calculator is provided for general informational and educational purposes only and does not constitute financial, tax, or legal advice. It is not affiliated with, endorsed by, or a substitute for consultation with your lender or a licensed financial advisor.
All figures — including available credit, draw-period payment, repayment-period payment, and total interest — are approximations based on the numbers you enter and standard interest-only and amortization formulas. They do not account for lender-specific underwriting, introductory promotional rates, rate caps or floors, annual fees, or credit-score-based pricing that may apply to your actual HELOC.
HELOC rates are variable and can change monthly with the prime rate; the rate you enter is treated as constant for each calculation. Use the Rate stress test tab to see how an increase would affect your payments. FinToku is not a lender and does not broker, originate, or guarantee financing.
Free tool by FinToku · Results are indicative. Consult your lender for exact figures.
Method, assumptions and result checks
What this tool covers: Free HELOC calculator. Estimate your draw-period and repayment-period payments, available credit limit, and total interest on a home equity line of credit.
Review the calculator’s worked examples, formulas, timing and exclusions in the sections below. Input units and payment frequency matter. A displayed APR is not necessarily the interest rate used by the model. Tax, investment, daily-interest and specialist loan models have different rules.
Interface and accessibility reviewed November 8, 2026. This is not a certification of current rates, tax tables or every financial statement. Verify important results against actual documents.
Monthly loan formulas and worked examples · Build questions for your lender
Free HELOC calculator. Estimate your draw-period and repayment-period payments, available credit limit, and total interest on a home equity line of credit.
Learn more about this calculation
Review these related guides before comparing estimates with actual lender terms.
How to use this calculator & related guidance
How a HELOC differs from a home equity loan
A home equity line of credit (HELOC) is a revolving credit line secured by your home. You can borrow up to a set limit, repay it and borrow again during the draw period. Most HELOCs have a variable rate tied to a benchmark index, so the payment can change.
A HELOC usually has two phases. During the draw period, which often lasts about ten years, you can borrow and many lenders allow interest-only payments. During the repayment period, you can no longer draw, and payments include principal, so they are often noticeably higher. The calculator shows both phases so you can see the jump before it arrives.
Before you open a HELOC
- Plan for rate changes. Run a higher rate than today's to see whether the payment still fits.
- Borrow only what you need. An unused line costs nothing, but a drawn balance does, and your home is the collateral.
- Read the fees. Appraisal, origination, annual and early-closure fees vary. Some lenders waive them if you draw a minimum amount.
- Know the risk. If you cannot pay, the lender can foreclose on the home. A HELOC is a secured debt, so treat it like a mortgage.
Frequently asked questions
What is the difference between a HELOC and a home equity loan?
A home equity loan pays you a lump sum at a fixed rate with a fixed payment. A HELOC is a revolving line with a variable rate, where you draw money as needed during a draw period.
What happens when the HELOC draw period ends?
The line closes to new draws and the repayment period begins. Payments then cover principal and interest over the remaining term, which usually makes them higher than the interest-only payments you made earlier.
How much can I borrow on a HELOC?
Lenders typically cap combined loan-to-value at around 80% to 90% of the home’s appraised value, minus your existing mortgage. Your credit score and income also affect the limit.
Are HELOC payments tax deductible?
Interest may be deductible only when the borrowed money is used to buy, build or substantially improve the home that secures the loan, and only within federal limits. Check current IRS rules or a tax professional before counting on it.
Guides that use this calculator
All guidesHELOC Draw Period Ending: Plan for the Repayment Bill
Check the outstanding HELOC balance, end-of-draw terms and future repayment budget before assuming the current minimum payment will continue.
LoansBridge Loan vs HELOC: Buying Before the Old Home Sells
Compare bridge financing and a HELOC for a move using overlap payments, maturity, sale proceeds and a delayed-sale stress test.
LoansChase vs Bank of America: Mortgage or Home Equity?
Compare Chase and Bank of America by first choosing purchase, refinance or home-equity borrowing, then matching the actual product and cash need.
LoansFigure vs PenFed HELOC: Compare Initial Draw Requirements
Compare Figure and PenFed HELOC structures using full initial disbursement, optional draws, idle-cash interest and future access conditions.