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HELOC Payment Calculator 2026

Calculate your draw period and repayment period payments. See the payment shock when repayment starts. Model rate changes and extra payments. No sign-up required.

$
$10,000$500,000
%
2%Avg: 7.02%18%
$

Draw Period Payment

Interest only

$468.00

per month for 10 years

Repayment Period Payment

Principal + interest

$621.20

per month for 20 years

Payment Shock

Increase at repayment

+$153.20

+33% increase starting May 2036

Total Interest

$125,248

Total Cost (Principal + Interest)

$205,248

Repayment Starts

May 2036

What If Rates Change?

RateDraw PaymentRepayment PaymentShock
7.02%current$468.00$621.20+$153.20
8.02%+1%$534.67$670.15+$135.48
9.02%+2%$601.33$720.81+$119.48
10.02%+3%$668.00$773.08+$105.08

HELOC rates are variable. This table shows how rate changes affect your monthly payments across both periods.

Understanding Your HELOC Payments

Draw Period

During the draw period (typically 5 to 10 years), you can borrow from your credit line as needed. Your required payment is interest-only, which keeps monthly costs low. You can also make principal payments to reduce your balance.

  • Interest-only minimum payments
  • Flexible borrowing up to your credit limit
  • Variable rate adjusts with prime rate

Repayment Period

When the draw period ends (typically 10 to 20 years), your payment switches to principal plus interest. This means your monthly payment can increase significantly. The balance must be fully repaid by the end of the repayment period.

  • Principal + interest payments
  • No further borrowing allowed
  • Payment shock can double or triple your payment

Payment Shock Warning

When your draw period ends, your payment can increase by 100% or more overnight. For example, an $80,000 balance at 7.02% goes from $468/month (interest-only) to $620/month (principal + interest over 20 years). If you only have 10 years to repay, that jumps to $929/month. Planning ahead is critical. Use our Payment Shock Calculator to model your specific scenario.

Frequently Asked Questions

How is a HELOC payment calculated?
During the draw period, your HELOC payment is interest-only: multiply your balance by the annual rate and divide by 12. For example, an $80,000 balance at 7.02% equals $468 per month. During the repayment period, the payment switches to a standard amortizing payment that covers both principal and interest, calculated using the remaining balance, rate, and repayment term length.
What is the difference between the draw period and repayment period?
The draw period (typically 5 to 10 years) is when you can borrow from your credit line and make interest-only payments. The repayment period (typically 10 to 20 years) begins when the draw period ends. You can no longer borrow, and your payment increases because you must now pay back principal along with interest. This transition is called payment shock.
How do variable rates affect my HELOC payment?
Most HELOCs have a variable rate tied to the prime rate plus a margin set by your lender. When the Federal Reserve raises or lowers rates, the prime rate follows, and your HELOC rate adjusts accordingly. A 1% rate increase on an $80,000 balance adds approximately $67 per month to your interest-only draw period payment. Lifetime rate caps, typically 18%, limit how high your rate can go.
What is the minimum payment during the draw period?
Most lenders require at least the interest-only payment during the draw period. Some lenders may require a small amount of principal as well, typically 1% to 2% of the outstanding balance. Making only the minimum payment means your balance stays the same, leading to the largest possible payment shock when repayment begins.
Can I pay off my HELOC early?
Yes. Most HELOCs have no prepayment penalty, meaning you can pay extra toward principal at any time during the draw period. Paying extra reduces your balance, which lowers both your interest cost and your future repayment payment. Even small extra payments of $100 to $200 per month can significantly reduce payment shock.
Is HELOC interest tax deductible?
HELOC interest is tax deductible only if the funds are used to buy, build, or substantially improve the home securing the loan, and you itemize deductions. If you use HELOC funds for debt consolidation, car purchases, or other non-home expenses, the interest is not deductible. The combined mortgage and HELOC debt must stay under $750,000 for the deduction to apply.

Explore More HELOC Tools

How Much Can You Borrow?Calculate your borrowing power based on home value and mortgage balance.Payment Shock CalculatorSee exactly how much your payment increases when the draw period ends.How HELOC Rates WorkUnderstand the prime + margin formula and what affects your rate.HELOC vs Home Equity LoanSide-by-side comparison calculator for both products.

Updated 2026-04-27