Using the HELOC Calculator
Enter the amount actually drawn rather than the entire credit limit. Try a higher rate as a separate scenario if the line has a variable rate, keeping the drawn balance unchanged for the comparison.
Worked example
Use the example inputs below to reproduce this result. These are the form's starting values, not recommended targets. Changing your inputs updates your result above; this worked example stays fixed for comparison. Results are rounded for display.
Example inputs
- Balance drawn
- 50000
- Annual rate (%)
- 8
- Repayment years
- 15
Example result
- Monthly interest-only payment
- 333.33
- Monthly amortizing payment
- 477.83
Method and assumptions
Assumes a constant balance and rate during the draw phase. Real HELOC rates and payments may vary.
Build a complete housing comparison
A housing calculation usually answers one part of a larger decision. Keep the purchase price, financing, recurring ownership expenses and eventual sale assumptions in separate lines of your budget. This makes it easier to spot costs omitted by a particular model. When comparing alternatives, use the same time horizon and currency for both.
Common question
Does an interest-only payment reduce the balance?
No. It covers the interest on the amount drawn. Principal falls only when payments exceed interest or when the repayment phase requires amortization.
Guide updated .