A Home Equity Line of Credit (HELOC) gives you flexible access to funds, but understanding how payments work during the draw and repayment periods is critical.

Our HELOC Amortization Calculator helps you:

• Calculate monthly payments during the draw period
• Estimate repayment period payments
• See total interest paid
• Analyze remaining balance after draw phase
• Understand total HELOC cost over time

Whether you’re planning renovations, consolidating debt, or covering major expenses, this tool gives you a complete financial picture.

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What Is a HELOC?

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A HELOC (Home Equity Line of Credit) is a revolving credit line secured by your home. Unlike a traditional loan, you can borrow, repay, and borrow again during the draw period.

A HELOC typically has two phases:

1️⃣ Draw Period

• Usually 5–10 years
• You can withdraw funds
• Often interest-only payments

2️⃣ Repayment Period

• Usually 10–20 years
• No more borrowing
• Principal + interest payments required

This calculator models both phases for accurate long-term cost estimation.

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Key Features of This HELOC Calculator

✅ Draw Period Payment Calculation

Choose between:

• Interest-only payments
• Principal + interest payments

✅ Repayment Period Amortization

See:

• Monthly repayment amount
• Remaining balance after draw
• Total interest paid

✅ Additional Monthly Payments

Add optional extra payments to:

• Reduce principal faster
• Lower total interest
• Shorten payoff timeline

✅ Full Loan Summary

Get:

• Total interest paid
• Total amount paid
• Credit utilization rate
• Available credit
• Total loan term

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How to Use the HELOC Amortization Calculator

Using this tool takes less than a minute:

Step 1: Enter HELOC Credit Limit

Your total approved credit line.

Step 2: Enter Amount Borrowed

How much you are currently using.

Step 3: Enter Interest Rate

Your annual interest rate (APR).

Step 4: Enter Draw Period

Number of years you can access funds.

Step 5: Enter Repayment Period

Number of years for repayment.

Step 6: Select Payment Type

Choose:

• Interest-Only
• Principal + Interest

Step 7: Add Additional Monthly Payment (Optional)

To reduce balance faster.

Step 8: Click Calculate

Instantly view your full amortization breakdown.

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Example HELOC Calculation

Let’s assume:

• Credit Limit: $100,000
• Amount Borrowed: $60,000
• Interest Rate: 7%
• Draw Period: 10 years
• Repayment Period: 20 years
• Payment Type: Interest-only
• Extra Payment: $200/month

What You’ll See:

• Monthly draw payment
• Total paid during draw period
• Remaining balance after draw
• Monthly repayment payment
• Total interest over full term
• Total amount paid

This allows you to compare scenarios and plan smarter.

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Understanding HELOC Payment Types

🔹 Interest-Only Payments (Draw Period)

• Lower monthly payment
• Principal remains mostly unchanged
• Larger payments during repayment phase

Best for: Short-term flexibility.

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🔹 Principal + Interest (Draw Period)

• Higher monthly payment
• Reduces balance during draw
• Lower repayment burden later

Best for: Long-term savings and faster payoff.

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Why Additional Payments Matter

Even small extra monthly payments:

• Reduce principal early
• Cut total interest significantly
• Lower repayment phase payments
• Help you build equity faster

This calculator shows exactly how much you save.

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Who Should Use This HELOC Calculator?

This tool is ideal for:

• Homeowners considering a HELOC
• Borrowers comparing payment strategies
• People planning renovations
• Anyone wanting to minimize interest costs
• Financial planners evaluating scenarios

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Why HELOC Planning Is Important

HELOCs often have variable rates and long repayment terms. Without careful planning:

• Payments can rise unexpectedly
• Interest costs can become substantial
• Repayment phase can feel overwhelming

Using this calculator helps you:

• Visualize future obligations
• Avoid financial surprises
• Make informed borrowing decisions

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Frequently Asked Questions (FAQs)

1. What does this HELOC Calculator do?

It calculates monthly payments, total interest, and overall loan cost across both draw and repayment periods.

2. Does it support interest-only payments?

Yes. You can select interest-only during the draw period.

3. Can I add extra monthly payments?

Yes. Additional payments reduce principal faster.

4. Does it calculate remaining balance?

Yes. It shows your balance entering the repayment phase.

5. Does it show total interest paid?

Yes. Both draw and repayment interest are included.

6. What happens if I fully pay off during draw period?

The calculator adjusts the remaining balance accordingly.

7. Is this tool free?

Yes, completely free to use online.

8. Does it include taxes or fees?

No, it focuses on principal and interest only.

9. Can I use it for different scenarios?

Yes. Run multiple calculations to compare options.

10. Is this accurate?

It uses standard amortization formulas for reliable estimates.

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Final Thoughts

A HELOC offers flexibility, but understanding the full cost is essential. This HELOC Amortization Calculator gives you clarity on:

• Monthly obligations
• Total interest paid
• Balance after draw period
• Overall loan cost

Before borrowing against your home equity, run your numbers and make a confident financial decision.