HELOC Calculator
Calculate payments and costs for a Home Equity Line of Credit with draw and repayment periods
HELOC Analysis
Available Equity
$200,000
Max HELOC Amount
$150,000
✓ Likely Approved
Loan-to-value ratio: 70%
Loan-to-value ratio: 70%
Payment Schedule
Draw Period Payment
$708
Repayment Period Payment
$1,045
Payment Increase
$337
Total Interest Paid
$155,400
Total Cost
$258,000
Payment Timeline
Compare with Other Options
| Option | Interest Rate | Monthly Payment | Total Interest | Pros/Cons |
|---|---|---|---|---|
| HELOC | 8.5% | $708-$1,045 | $155,400 | Flexible access, variable rate |
| Home Equity Loan | 7.8% | $781 | $87,600 | Fixed rate, lump sum |
| Cash-Out Refinance | 7.2% | $2,398 | $263,280 | Lower rate, higher payment |
| Personal Loan | 12.5% | $1,434 | $72,040 | No collateral, higher rate |
Understanding HELOCs
🏠 How HELOCs Work
A HELOC is a revolving credit line secured by your home equity, similar to a credit card but with lower rates.
📈 Variable Interest Rates
Most HELOCs have variable rates tied to the prime rate, so payments can fluctuate over time.
⏰ Two-Phase Structure
Draw period (typically 10 years) for borrowing, then repayment period (10-20 years) for paying back.
💰 Tax Deductibility
Interest may be tax-deductible if funds are used for home improvements that add value to your property.
⚠️ Risk Considerations
Your home is collateral. Failure to repay could result in foreclosure. Consider payment shock when draw period ends.
🎯 Best Uses
Home improvements, debt consolidation, education expenses, or emergency fund access.