Home Equity Line of Credit Payment Calculator

This calculator estimates the monthly payment on a home equity line of credit (HELOC) using the amount drawn, an annual percentage rate, and a repayment term. Enter those figures to see an estimated level monthly payment and total interest; the calculation assumes the balance is repaid in equal monthly installments.

Formula

For a fixed balance repaid through equal monthly payments, the payment is calculated with the standard amortizing-loan formula:

Monthly payment = P × r ÷ [1 − (1 + r)⁻ⁿ]

• P is the amount drawn and being repaid, in dollars.
• r is the monthly interest rate, calculated as annual APR ÷ 1,200. For an 8% APR, r = 0.08 ÷ 12, or about 0.006667.
• n is the number of monthly payments, calculated as repayment years × 12.

The calculator rounds the monthly payment to the nearest cent. Estimated total interest is the rounded monthly payment multiplied by the number of payments, minus the original balance: total interest = payment × n − P. Because the payment is rounded, the total is an estimate; an actual final payment can differ slightly.

Worked Example

Using the calculator’s default values—$20,000 drawn, an 8% APR, and five years to repay:

1. Convert the APR to a monthly rate: 8 ÷ 1,200 = 0.0066667.
2. Convert the term to monthly payments: 5 × 12 = 60.
3. Substitute in the payment formula: $20,000 × 0.0066667 ÷ [1 − (1.0066667)⁻⁶⁰].
4. The unrounded result is about $405.53, so the estimated monthly payment is $405.53.
5. Using the rounded payment, total interest is ($405.53 × 60) − $20,000 = $4,331.80.

Assumptions

• The rate is fixed throughout the modeled repayment period, although many HELOCs have variable rates.
• Payments occur monthly, with the first payment one month after the repayment period begins.
• Interest compounds monthly using APR divided by 12.
• The estimate excludes lender fees, taxes, insurance, PMI, escrow, and any payment changes or special terms not entered as calculator inputs.

How HELOC Payments Work

A HELOC is a revolving borrowing arrangement secured by home equity. It typically allows a borrower to draw money up to an available credit limit, rather than receiving the entire amount as a lump sum. The payment can depend on the amount actually borrowed, the rate, and the account’s current phase and contract terms.

Many HELOC agreements distinguish between a draw period, when borrowing may be available, and a repayment period, when borrowed amounts must be repaid. During a draw period, required payments may be calculated differently from the fully amortizing payment shown here; some agreements may require interest-only payments for a time, while others require principal as well. When repayment starts, the required payment may rise because the balance must be paid down over a shorter remaining period. The agreement and lender’s disclosures determine the actual schedule.

This calculator answers a narrower question: what would a fixed balance cost per month if it were repaid in equal installments at a steady APR for the selected term? It does not calculate a credit limit, available equity, or a variable-rate payment schedule.

Using the Estimate

Enter the amount currently drawn that you want to model, not the maximum credit line unless the full line has been borrowed. Use the annual APR supplied for the account and the number of years over which that balance is expected to be repaid. If the lender quotes a different rate for a future period, the estimate will not reflect that change unless you enter the new rate and calculate again.

The first result is the estimated monthly principal-and-interest payment under the stated assumptions. The total-interest result estimates the interest paid over all modeled installments; it is not the total amount repaid. Add the original principal to that interest to get the modeled total of payments. Actual statements can differ because of rate changes, payment dates, rounding conventions, additional draws, extra payments, fees, or a final adjusted installment.

For a variable-rate HELOC, an unchanged-rate calculation is only a snapshot. If the APR rises, the interest portion of payments can increase, and the required payment may change. If the APR falls, the reverse may occur, depending on the contract. Use the lender’s current terms and consider separate scenarios rather than treating one estimate as a forecast.

Costs and Limits to Keep in Mind

The APR and repayment period are inputs, not claims about what a lender will offer. Obtain the actual rate, payment rules, fees, and term details from the relevant account documents or lender. The quoted APR may not capture every cost that affects the overall expense, and this calculator has no fields for fees, rate caps, minimum payments, or changing balances.

A common misconception is that a HELOC’s payment must stay the same as long as the borrower makes payments on time. With a variable rate, additional borrowing, or a change from a draw period to repayment, the payment may change under the agreement. Also, an interest-only payment is not equivalent to paying off the balance: it generally does not reduce principal, so principal remains to be repaid later.

The estimate is not a measure of affordability or approval. It does not assess household income, other debts, home value, credit history, or any lender-specific qualification criteria. It is arithmetic for one assumed balance, rate, and term; it cannot establish whether a particular credit line is suitable for someone’s circumstances.

Frequently Asked Questions

How do you calculate a HELOC payment?
For a fixed balance, fixed APR, and equal monthly payments, use the amortizing-payment formula: principal multiplied by the monthly rate, divided by one minus the factor (1 + monthly rate) raised to the negative number of payments. Monthly rate is APR divided by 1,200.

Are HELOC payments interest-only?
Not necessarily. Payment rules vary by agreement and phase. Some arrangements may allow interest-only payments during a draw period, while repayment terms may require principal and interest. Check the account documents for the required payment method.

Can my HELOC payment change?
It can. A variable APR, new draws, a change in the repayment phase, or other contract terms may affect the amount due. This calculator assumes a constant APR and no additional borrowing.

Does this estimate include fees or taxes?
No. It models principal and interest only and does not include fees, taxes, insurance, PMI, escrow, or other charges. Review the lender’s disclosures and account statements for amounts outside the calculation.

What happens if I pay extra?
Extra payments may reduce the principal balance and could lower future interest, but the effect on required payments and the payoff date depends on the agreement and how the lender applies payments. This calculator does not model extra payments.

This result is an estimate, and the lender’s disclosure gives the exact figures.

Related

• Bihar Electricity Bill Payment: How to Pay Online
• Business Electricity Bill: Charges, Costs and Savings
• AP Electricity Bill Payment Online: Steps and Options

in p | Amount drawn | $ | 20000 | 1 | 100000000
in apr | Interest rate (APR) | % | 8 | 0.01 | 100
in yrs | Repayment term | years | 5 | 0.0833 | 50
out pmt | Monthly payment | $ | round(p * (apr / 1200) / (1 - (1 + apr / 1200) ^ -(yrs * 12)), 2) | 2
out int | Total interest | $ | pmt * yrs * 12 - p | 2