HELOC Payment Calculator

Q: What if I can't afford the repayment payment when it starts?

You have several options: (1) Refinance the balance into a fixed-rate home equity loan before repayment begins. (2) Request a loan modification — some lenders will extend your repayment term to reduce the monthly payment. (3) Sell the property and pay off the HELOC at closing. (4) Talk to a HUD-approved housing counselor for free advice. Contact your lender as early as possible — ideally 12–18 months before repayment begins.

Q: What is the difference between a fixed-rate and variable-rate HELOC payment?

A variable-rate HELOC (the most common type) has a payment that moves with the prime rate. When the Fed raises rates, your payment increases — sometimes significantly. A fixed-rate HELOC locks your rate at draw time so your payment never changes, but typically starts at a rate 0.25–0.50% higher than a variable HELOC. Some lenders offer a hybrid: a variable HELOC with the option to lock a portion at a fixed rate.

Q: How can I lower my HELOC monthly payment?

The most impactful actions are: (1) Improve your credit score to 720+ before applying — this reduces your lender margin, which is fixed at closing. (2) Reduce your draw amount — only draw what you need. (3) Choose a longer repayment period (e.g. 30 years instead of 20) — this lowers the monthly P+I payment but increases total interest. (4) Make extra payments during the draw period to reduce the balance. (5) Refinance if rates drop significantly.

Calculate your draw period interest-only payment and repayment period P+I payment side by side. See exactly how much more you will pay when the draw period ends — and stress-test your budget at higher rates. Free, instant, no signup required.

100% free forever Instant results No credit check Expert reviewed

Draw period payment

Interest-only · low cost

Repayment period payment

P+I amortizing · full cost

Rate stress-test

+1% · +2% · +3% scenarios

Example calculation

Live results

Your scenario

HELOC balance drawn $100,000

Interest rate (APR) 8.25%

Draw period 10 years

Repayment period 20 years

Draw period payment

$688/mo

Interest-only · 10 years

Draw phase

Repayment period payment

$857/mo

Principal + interest · 20 years

Repay phase

Payment increase at repayment

+$169/mo

+24.5% more than draw period

Payment shock

Calculate my payment Today's rates

HELOC Payment Calculator — Draw & Repayment Period

Results update instantly

Max borrowing? HELOC Calculator →

Your HELOC details

HELOC balance drawn $100,000

$1K$500K

Interest rate (APR) 8.25%

1%20%

Draw period 10 yrs

Repayment period 20 yrs

Extra monthly payment $0

Closing costs $0

Your results

Monthly draw period payment

$688

Interest-only · no principal reduction

Annual interest cost $8,250

Total interest (draw phase) $82,500

Draw period ends 2036

Balance owed at draw end $100,000

Monthly repayment period payment

$857

Principal + interest · fully amortizing

Payment vs draw period +$169/mo (+24.5%)

Total interest (repayment) $105,640

Total interest (both phases) $188,140

Total cost (principal + interest) $288,140

Scenario	Rate	Draw pmt	Repay pmt
Current Now	8.25%	$688	$857
+1% Caution	9.25%	$771	$915
+2% Caution	10.25%	$854	$976
+3% High risk	11.25%	$938	$1,037

If rate hits +3%: extra monthly cost +$250/mo

Payment timeline

Draw · 10 yrs

Repayment · 20 yrs

Draw: interest-only (10 yrs)

Repayment: P+I (20 yrs)

Payment shock warning

Your repayment payment is significantly higher than your draw payment. Start budgeting for this increase before your draw period ends.

Amortization schedule

#	Payment	Principal	Interest	Balance

Rows 1–24

Understanding the two phases

How HELOC payments work

A HELOC has two distinct phases with very different payment structures. Understanding both — and the jump between them — is the most important thing you can do before taking one out.

Draw period

Phase 1

During the draw period you can borrow up to your credit limit, repay, and borrow again — like a credit card secured by your home. Payments are interest-only, calculated on your current outstanding balance. Your principal balance does not reduce.

Typical length5–10 years

Payment typeInterest-only

Principal balanceUnchanged

FormulaBalance × (Rate ÷ 12)

Repayment period

Phase 2

When the draw period ends, the line closes and the outstanding balance is fully amortized over the repayment period. Payments now include both principal and interest — typically resulting in a significantly higher monthly payment.

Typical length10–20 years

Payment typePrincipal + interest

Principal balanceReduces each month

FormulaAmortization (P+I)

Draw period formula (interest-only)

Balance

Amount drawn

Rate ÷ 12

Monthly rate

Payment

Monthly cost

$100,000 × (8.25% ÷ 12) = $687.50/mo

Example: $100K HELOC at 8.25% — 10yr draw + 20yr repayment

Balance drawn $100,000

Draw period payment (interest-only) $688/mo

Repayment period payment (P+I) $857/mo

Payment jump at repayment start +$169/mo (+24.5%)

Total interest (both phases) $188,140

Total cost over 30 years $288,140

Budget for payment shock before it hits

Use the stress-test tab in our calculator to see your repayment payment at today's rate and at +1%, +2%, +3%. If you can comfortably afford the highest scenario, you are in a safe position.

Pay extra principal during the draw period

You are not required to pay only interest during the draw period. Paying extra principal reduces your balance — which directly lowers both your draw payment and your eventual repayment payment.

Ask about fixed-rate conversion options

Some lenders let you lock a fixed rate on all or part of your HELOC balance, either at draw or when repayment begins — eliminating variable rate risk for that portion.

Pre-calculated scenarios

Payment scenarios at a glance

Common HELOC balance amounts across three rate scenarios — 10-year draw period, 20-year repayment. Use the calculator above to model your specific numbers.

Balance

Rate

Draw pmt

Repay pmt

Total interest

Total cost

$50K

7.00%

$292/mo

$388/mo

$69,760

$119,760

$50KAvg rate

8.25%

$344/mo

$429/mo

$82,110

$132,110

$50K

10.00%

$417/mo

$483/mo

$95,920

$145,920

$100K

7.00%

$583/mo

$775/mo

$139,520

$239,520

$100KAvg rate

8.25%

$688/mo

$857/mo

$164,220

$264,220

$100K

10.00%

$833/mo

$965/mo

$191,840

$291,840

$150K

7.00%

$875/mo

$1,163/mo

$209,280

$359,280

$150KAvg rate

8.25%

$1,031/mo

$1,286/mo

$246,330

$396,330

$150K

10.00%

$1,250/mo

$1,448/mo

$287,760

$437,760

What if rates rise? The case for stress-testing

HELOC rates are variable — tied to the prime rate, which moves whenever the Federal Reserve raises or cuts. The prime rate rose 5.25% in just 18 months between 2022 and 2023. A $100K HELOC that cost $417/mo could cost $1,083/mo within two years.

Always use our stress-test tab to calculate your payments at today's rate + 1%, 2%, and 3%.
If the +3% repayment payment is unaffordable, the HELOC may be too large for your budget.
Ask your lender about periodic rate caps — most HELOCs cap rate increases at 2% per year.

$100K HELOC — repayment payment at rising rates

Monthly repayment period payment

8.25% (today) $857/mo

9.25% (+1%) $915/mo

10.25% (+2%) $976/mo

11.25% (+3%) $1,037/mo

The most common HELOC surprise

Understanding payment shock

Payment shock is the sudden, often dramatic increase in your monthly payment when the HELOC draw period ends and repayment begins. It catches many homeowners off guard — often because they only budgeted for the interest-only draw payment.

What is payment shock?

Payment shock occurs when a HELOC transitions from its draw period (interest-only payments) to its repayment period (principal + interest). Because the full balance must now be amortized over a shorter period, monthly payments can increase by 25–75% or more — often without enough warning.

$100K HELOC · 8.25% · 10yr draw + 20yr repayment

Draw period (Years 1–10)

$688/mo

Interest-only · principal balance stays at $100,000

Repayment begins (Year 11) ← Payment shock

$857/mo

+$169/mo overnight · +24.5% increase · P+I now required

HELOC fully paid off (Year 30)

$0/mo

Total paid: $288,140 · Total interest: $188,140

Calculate your repayment payment now

Use the Repayment tab in our calculator above to see your exact P+I payment before you borrow. If you can comfortably afford the repayment payment today, you have a safe buffer for when it arrives.

Pay principal during the draw period

You are not required to pay interest-only. Paying extra principal during the draw period reduces your outstanding balance — which directly reduces your repayment payment and total interest.

Refinance before the draw period ends

Some borrowers refinance their HELOC balance into a fixed-rate home equity loan or cash-out refi before repayment begins — locking in a predictable payment and avoiding variable rate risk.

Consider a fixed-rate HELOC

Some lenders offer fixed-rate HELOCs or allow you to lock a portion at a fixed rate. While the starting rate is slightly higher than variable, the payment certainty can be worth it for long-term planning.

Rule of thumb: Before drawing on your HELOC, make sure you could comfortably afford the repayment period payment at today's rate plus 2%. If that number is out of reach, reconsider the draw amount.

Test my numbers

6 questions answered

HELOC payment FAQ

The most common questions about HELOC draw period and repayment period payments — answered by our editorial team.

During the draw period, your minimum monthly payment covers only the interest accrued on your outstanding balance — no principal is repaid. The formula is: Balance × (Annual Rate ÷ 12). On a $100,000 HELOC at 8.25%, that is $100,000 × (0.0825 ÷ 12) = $687.50/mo. Your balance stays at $100,000 until repayment begins.

The repayment period begins automatically when your draw period ends — typically after 5–10 years. From that point, the line of credit closes and your outstanding balance is fully amortized over the repayment period (usually 10–20 years). Your payment switches from interest-only to principal + interest, which is nearly always higher than your draw payment.

Yes — and it is one of the smartest things you can do. Most HELOCs allow you to make payments above the interest-only minimum at any time without penalty. Every dollar of principal you repay during the draw period directly reduces your outstanding balance, which lowers your interest charges, reduces your eventual repayment payment, and shortens your total payoff time. Use the 'Extra monthly payment' field in our calculator to see the impact.

You have several options: (1) Refinance the balance into a fixed-rate home equity loan before repayment begins. (2) Request a loan modification — some lenders will extend your repayment term to reduce the monthly payment. (3) Sell the property and pay off the HELOC at closing. (4) Talk to a HUD-approved housing counselor for free advice. Contact your lender as early as possible — ideally 12–18 months before repayment begins.

A variable-rate HELOC (the most common type) has a payment that moves with the prime rate. When the Fed raises rates, your payment increases — sometimes significantly. A fixed-rate HELOC locks your rate at draw time so your payment never changes, but typically starts at a rate 0.25–0.50% higher than a variable HELOC. Some lenders offer a hybrid: a variable HELOC with the option to lock a portion at a fixed rate.

The most impactful actions are: (1) Improve your credit score to 720+ before applying — this reduces your lender margin, which is fixed at closing. (2) Reduce your draw amount — only draw what you need. (3) Choose a longer repayment period (e.g. 30 years instead of 20) — this lowers the monthly P+I payment but increases total interest. (4) Make extra payments during the draw period to reduce the balance. (5) Refinance if rates drop significantly.

Free tools