$233/month
- Monthly payment reduction
- $817
During an interest-only draw period, this payment does not reduce your balance.
YOUR EQUITY, WITH THE TRADEOFFS VISIBLE
HELOC payment calculator
Estimate the payment on a home equity line used to pay off the debts you enter. Compare an interest-only draw-period example with principal-and-interest repayment. Your existing first mortgage stays separate.
Keep your existing mortgage and compare payments on debts you would pay off with a home equity line. Enter balances and current monthly payments; do not include your first mortgage.
$35,000 initial HELOC draw$1,050/mo current debt payments
$293/month
- Monthly payment reduction
- $757
Principal and interest, assuming this balance is amortized at the same rate with no further draws.
8% is an editable example, not an offered rate. HELOC rates usually vary and payments may rise. Fees are excluded. Lower payments do not establish lifetime interest savings; extending repayment can cost more. Your home secures the line and could be lost if you cannot repay. Eligibility, available equity and lender terms require review. Read the CFPB HELOC guide ↗
Review my comparison with Enrique →Calculations stay on this page. Bring your numbers to your conversation.
Draw period versus repayment period
A HELOC is a revolving line secured by your home. The agreement sets when you can borrow, what the minimum payment includes, and how the balance must be repaid. Some draw-period payments are interest only; they do not reduce principal. When repayment begins, a payment that includes principal can be substantially higher.
For an illustrative $35,000 draw at 8%, monthly interest is approximately $233. That is arithmetic using an assumed rate, not a lender quote. Paying only that interest leaves the full $35,000 balance outstanding. The second result shows what repayment could look like if that balance is paid down over the years you choose.
Test more than one rate
Many HELOCs have variable rates. Change the rate above to see a higher-payment scenario before deciding what fits your budget. Ask the lender about the index, margin, introductory period, adjustment frequency, minimum rate, maximum rate and whether a fixed-rate conversion is available. The calculator holds each rate constant for comparison; it does not simulate a changing rate path.
A lower payment is only one part of the decision
Consolidating debt can change the repayment period and move debt onto your home. Compare total interest, fees and your payoff plan alongside the payment reduction. If old credit balances build up again, the household may owe both the HELOC and new unsecured debt. Your home is collateral and could be lost if you cannot repay.
Write down a target payoff date, a monthly amount you can maintain, and the cash you will keep for emergencies. Compare that plan with paying the current debts directly. A low minimum payment is not the same as a fast payoff, and this calculator does not project lifetime savings on the debts you replace.
What the calculator includes
The initial draw equals the debt balances entered. Interest-only payment equals balance × annual rate ÷ 12. The repayment illustration uses standard monthly amortization. It assumes no further draws and a constant rate; fees, taxes and insurance are excluded. Current debt payments are used only for the monthly payment comparison.
The tool does not determine equity, approval, tax deductibility, or a lender’s minimum payment. Ask about application, appraisal, annual, inactivity and early-closure charges, and obtain the actual draw and repayment schedules before committing.
Compare ways to use equity
Read HELOC versus cash-out refinancing, run the cash-out refinance calculator, or use the refinance break-even calculator when considering a replacement first mortgage. Talk with Enrique about the same amount of cash and the same payoff horizon across your alternatives.
Common questions
How is an interest-only HELOC payment calculated?
For this monthly illustration, multiply the drawn balance by the annual interest rate and divide by 12. A $35,000 balance at an illustrative 8% produces about $233 per month in interest; the balance does not decline.
What happens when the repayment period starts?
Principal repayment can increase the payment. This calculator also shows a fully amortizing payment over your chosen period at the same assumed rate. Actual draw and repayment terms vary by lender.
Does this tell me how much equity I can borrow?
No. It models payments on the debt balances you enter. A lender must review property value, existing liens, credit, income and program limits to determine eligibility and any available line.
Source: CFPB: what is a HELOC?. Educational examples, not credit offers.