HELOC Calculator
Estimate your HELOC draw and repayment payments, total interest and available credit line based on your home equity.
Draw period
Repayment period
Credit line
$280,000
Home value minus balance owed
Draw-period payment
$1,633.33/mo
Interest-only during the draw period
Repayment-period payment
$3,323.65/mo
Principal + interest
Total interest
$314,838
A HELOC is a revolving line of credit against your home equity, with an interest-only draw period followed by full repayment.
How it works
Interest-only payment = drawn amount × monthly rate. Repayment payment = amortised over remaining term.
Example: $50,000 drawn at 7.5% → $312/month interest-only; ~$403/month over 20 years.
Last updated: April 2026
How this calculator is verified
Checked by True Calculator automated test suite on
- Formula verified against a published worked example in the automated test suite
- Edge cases (zero, negative, boundary and unit-mismatch inputs) covered by unit tests
The full verification method is on our how we verify page. Found an error? Tell us and we will re-check it.
When to Use This Calculator
Use the HELOC calculator when you are considering a home equity line of credit — a revolving facility secured against your property, common in the US and Canada and offered in India by some lenders against self-occupied property. During the draw period you typically pay interest only on what you borrow, and the repayment period then converts the outstanding amount into fixed payments; this tool models both phases. Enter your home value, outstanding mortgage, credit limit and the rate to see the available line, the interest-only payment during the draw period and the repayment payment afterwards. Homeowners planning a renovation, an education expense or a business injection use it to check that the payments fit the budget before drawing a rupee.
How to Use This Calculator
- Step 1: Enter your home's current market value in the home value field — use a recent valuation, not the price you paid years ago.
- Step 2: Enter the balance still owed on your existing home loan in the balance owed field; the difference is your available credit line.
- Step 3: Set the draw-period interest rate and years, then the repayment-period rate and years.
- Step 4: Compare the interest-only draw payment with the principal-plus-interest repayment payment, and note the total interest for the full cycle.
Worked Example
Your home is worth ₹1,00,00,000 and you owe ₹40,00,000, so the available credit line is ₹60,00,000. During a 5-year draw period at 8.5%, the interest-only payment is about ₹42,500 a month. If you draw the full line and repay it over 10 years at 9.5%, the repayment EMI rises to about ₹77,639, and total interest including the draw period comes to about ₹58.7 lakh. The tool shows both payments so you can size the draw to your cash flow.
Tips and Common Mistakes
- •Tip 1: HELOCs are uncommon in India — banks more often offer a top-up home loan or a loan against property, which work on the same equity basis.
- •Tip 2: Draw rates are usually floating and reset periodically, so recalculate if the rate on your sanction letter differs from your assumption.
- •Tip 3: Check the loan-to-value cap your lender applies before assuming the full equity is drawable; most lenders finance only a part of the equity.
- ✗Mistake 1: Leaving the balance owed at zero — the usable credit line is home value minus what you still owe.
- ✗Mistake 2: Using the draw rate for the repayment period; repayment EMIs should use the rate your lender charges after the draw ends.
Frequently Asked Questions
What is a HELOC?
A Home Equity Line of Credit is a revolving credit line secured by your home, with a variable interest rate. You draw what you need and pay interest only on the amount used.
How do HELOC draw and repayment periods work?
During the draw period (typically 10 years) you can borrow and make interest-only payments. In the repayment period (typically 20 years) you can no longer draw and must repay principal plus interest.
How much will my HELOC payment be?
It depends on how much you've drawn, the current variable rate and whether you're in the draw or repayment period. This calculator estimates your minimum interest-only and fully amortised payments.
Is this HELOC calculator free to use?
Yes, True Calculator's HELOC calculator is completely free with no sign-up, no app install and no usage limits.
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