HELOC Payment & Draw Period Calculator

Your HELOC statement shows $83 due this month. Easy. Then year six arrives and suddenly you owe $847. Same balance, same rate—but the draw period ended and repayment began. That's payment shock, and it catches thousands of homeowners off guard every year. This HELOC payment calculator shows you both numbers before you sign.

A Home Equity Line of Credit works in two phases. During the draw period (typically 5-10 years), you borrow as needed and make interest-only payments. The balance stays flat. When the draw period ends, the repayment period kicks in (typically 10-20 years)—no more borrowing, and payments now include principal. The jump can be 40-100% higher.

Enter your HELOC balance, rate, and terms. The calculator displays your draw-period payment, repayment-period payment, and exactly how much your monthly cost increases. You can also model rate increases to see worst-case scenarios.

Your drawn balance: Interest-only payments scale directly with your balance. $50,000 at 8% costs $333/month. $100,000 at 8% costs $667/month. Only borrow what you need.

The interest rate: Most HELOCs are Prime + a margin (typically 0.5-2%). When the Federal Reserve raises rates, your payment rises too. A 1% rate bump on $75,000 adds $62.50/month during the draw period.

Repayment term length: Shorter repayment periods mean higher monthly payments but less total interest. $100,000 at 8% over 10 years costs $1,213/month. Over 20 years: $836/month—but you'll pay $100,000 more in total interest.

Payment shock timing: The repayment transition often hits when you least expect it. Many people open HELOCs in their 40s-50s; repayment might start right as retirement approaches. Plan the timeline.

Rate volatility: From 2022-2023, Prime Rate jumped from 3.25% to 8.5%. A HELOC that cost $300/month suddenly cost $500+. Variable rates cut both ways, but they rarely drop as fast as they rise.

Your home is collateral: Unlike credit cards, a HELOC is secured by your house. Falling behind can lead to foreclosure. Only use HELOCs for needs that justify that risk—not vacations or everyday spending.

Treating it like free money: The easy access during the draw period tempts people to overborrow. Every dollar drawn increases your eventual repayment payment. The low interest-only payment masks the true commitment.

Balloon payment HELOCs: Some older HELOCs require the full balance due at the end of the draw period instead of converting to repayment. Check your agreement. If you have a balloon HELOC, refinancing is mandatory—start planning years in advance.

Draw period: Uses your current balance and rate to calculate interest-only payments. If you enter planned additional draws, those are added to the balance.

Repayment period: Takes the balance at the end of the draw period and amortizes it over your repayment term using standard loan formulas.

Rate scenarios: If you enter an assumed future rate, the calculator recalculates both phases at that rate so you can see worst-case payments.

Assumptions: Fixed rate during each scenario (actual HELOC rates fluctuate), minimum payments only (no extra principal), and standard monthly compounding.