Understand Your Monthly Payments
Calculate payments for both draw and repayment periods to avoid payment shock.
HELOC Payment Calculator - Monthly Payment Estimator
Estimate your HELOC monthly payments with precision. Our payment calculator shows you exactly what to expect during both the draw period (interest-only) and repayment period (principal + interest), helping you prepare for payment changes and avoid the shock that catches thousands of homeowners off guard each year.
Calculate Your HELOC Payment
Enter your HELOC details below to see your monthly payment for both phases:
HELOC Payment Calculator
Draw Period Payment
Current Phase$354.17/month
Interest-only payment for next 10 years
�?Lower payment - Only paying interest
�?Flexible - Can pay extra toward principal
⚠️ Balance stays the same if only making minimum payments
Repayment Period Payment
After Draw Period$491.78/month
Principal + interest payment for 15 years
⚠️ Higher payment - Paying both principal and interest
�?Balance decreases - Building equity
�?Fully paid off at end of term
Payment Shock Alert
Your payment will increase by $137.61 (39%) when the draw period ends.
💡 Tip: Start making principal payments now to reduce this future shock.
Total Cost Summary (If Rate Stays Constant)
Total Interest in Draw Period:
$42,500
Total Interest in Repayment Period:
$38,520
Total Interest Over Full Term:
$81,020
*Calculations assume constant interest rate. Actual payments may vary based on rate changes and balance fluctuations.
Understanding HELOC Payments
HELOC payments work differently than traditional loan payments. Here's what you need to know:
Phase 1: Draw Period (Typically 10 Years)
During this phase, you can borrow up to your credit limit and typically only pay interest on what you've borrowed.
- Payment Type: Interest-only (minimum payment)
- Balance: Stays the same if you only make minimum payments
- Flexibility: Can pay extra toward principal any time
- Borrowing: Can continue to borrow up to your limit
- Rate Changes: Payment fluctuates with rate changes
💡 Pro Tip: Making even small principal payments during this phase can save thousands in interest later.
Phase 2: Repayment Period (Typically 15-20 Years)
After the draw period ends, you can no longer borrow and must pay both principal and interest to pay off the loan.
- Payment Type: Principal + Interest (fully amortizing)
- Balance: Decreases each month
- Flexibility: Limited - must make full payments
- Borrowing: No longer allowed
- Payment Increase: Often 30-50% higher than draw period
⚠️ Warning: This is when "payment shock" happens. Many homeowners are unprepared for this significant increase.
5 Ways to Reduce Your HELOC Payment
1. Make Principal Payments During Draw Period
Even paying an extra $100/month during the draw period can significantly reduce your future payment shock and total interest paid.
2. Refinance to a Fixed-Rate Loan
Convert your HELOC to a fixed-rate home equity loan before the repayment period to lock in predictable payments and potentially a lower rate.
3. Make a Lump Sum Payment
Use a bonus, tax refund, or other windfall to pay down your HELOC balance before the repayment period begins.
4. Shop for Better Rates
If your credit has improved or market rates have dropped, consider refinancing your HELOC to a lender offering better terms.
5. Extend the Repayment Period
Some lenders allow you to extend the repayment period from 15 to 20 years, which lowers monthly payments (but increases total interest).
Frequently Asked Questions
How do I calculate my HELOC payment?
To calculate your HELOC payment, you need to know: (1) your outstanding balance, (2) your interest rate, and (3) whether you're in the draw period (interest-only) or repayment period (principal + interest). During the draw period, multiply your balance by the annual rate, then divide by 12. During repayment, use an amortization formula or our calculator to determine the principal + interest payment.
What is HELOC payment shock?
HELOC payment shock occurs when your draw period ends (typically after 10 years) and you enter the repayment period. Your payment can increase dramatically because you now must pay both principal and interest instead of interest-only. For example, a $50,000 HELOC at 8.5% might jump from $354/month to $506/month - a 43% increase. Use our calculator to prepare for this change.
Can my HELOC payment change during the draw period?
Yes, if you have a variable-rate HELOC, your payment can change monthly based on your outstanding balance and interest rate fluctuations. Most HELOCs are tied to the Prime Rate, which can change when the Federal Reserve adjusts rates. Additionally, your payment changes as you borrow more or pay down your balance.
What's the average HELOC payment on $50,000?
On a $50,000 HELOC at 8.5% interest: During the draw period (interest-only), expect about $354/month. During the repayment period (15 years), expect about $492/month in principal + interest. Actual payments vary based on your specific rate and terms.
Should I make principal payments during the draw period?
While not required, making principal payments during the draw period can: (1) reduce your future payment shock, (2) save thousands in interest over the life of the HELOC, and (3) preserve more of your available credit line. Even small extra payments can make a big difference over 10 years.
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