HELOC Payoff Calculator
See what your home equity line of credit costs now, how much the payment rises when the draw period ends, and how fast a fixed monthly payment would clear it. The rate table shows what an increase in your variable rate would do.
HELOC payoff calculator
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| Minimum payments | Your plan | |
|---|---|---|
| Payment now | ||
| Payment when repayment starts | ||
| Paid off in | ||
| Total interest |
If your rate goes up (minimum payments)
| Rate | Interest-only payment | Repayment payment | Total interest |
|---|---|---|---|
Assumes the new rate applies from today. Real HELOC rates follow an index such as the prime rate and can move many times.
- Minimum payments
- Your plan
Year-by-year balance table
| Year | Minimum payments | Your plan |
|---|
How a HELOC is repaid
A HELOC has two phases:
- Draw period: you can borrow up to your limit, often for about 10 years. Many HELOCs only require interest during this time, so the payment is low and the balance does not shrink unless you pay more.
- Repayment period: borrowing stops, and the remaining balance is repaid with interest, often over 10 or 20 years. The required payment now includes principal, which is why it jumps.
Most HELOCs have a variable rate, so payments in both phases can change. A few plans require the whole balance when the draw period ends instead of a repayment schedule; check your agreement.
How the calculator works
With B the balance, r the annual rate divided by 12, and n the months in the repayment period:
Interest-only payment = B × r
The calculator runs month by month. During the draw period it charges interest on the balance and applies your payment, or the interest if your planned payment is lower. When the draw period ends, it computes the repayment payment from the balance left at that moment, and you pay that or your planned amount, whichever is larger. Interest is rounded to the cent each month. It assumes no new draws and a constant rate, except in the rate table.
Worked example
You owe $60,000 at 8.25%. Five years of the draw period remain, followed by a 20-year repayment period.
| Minimum payments | $700 a month | |
|---|---|---|
| Payment now | $412.50 | $700.00 |
| Payment in repayment | $511.24 | $700.00 |
| Paid off in | 25 yr | 10 yr 10 mo |
| Total interest | $87,447 | $30,915 |
On minimum payments, five years of interest-only payments leave the full $60,000 owed, and the payment rises by $98.74 a month when repayment starts. Paying $700 a month from today finishes more than 14 years sooner and saves $56,532 in interest.
Rates matter too. If the rate were 1 point higher from today, the interest-only payment would be $462.50, the repayment payment $549.52, and total interest on minimum payments about $99,635. Two points higher: $512.50, $588.99, and about $112,104.
Ways to soften the payment jump
- Pay principal during the draw period. Every dollar of principal paid early lowers the repayment payment later.
- Set a fixed monthly amount. Use the planned payment box to find an amount that clears the line by a date you choose.
- Ask about a fixed-rate option. Some lenders let you lock part of the balance at a fixed rate, usually higher but predictable.
- Consider other debt. If your first mortgage has a much lower rate, extra cash generally saves more on the HELOC. To weigh paying debt against investing, see thepay off mortgage or invest calculator.
Frequently asked questions
How is a HELOC interest-only payment calculated?
Multiply the balance by the annual rate and divide by 12. A $60,000 balance at 8.25% costs $412.50 a month in interest. Paying only that amount leaves the balance unchanged.
What happens to my payment when the draw period ends?
You can no longer borrow, and the lender typically sets a payment that repays the remaining balance with interest over the repayment period, often 10 or 20 years. Because principal is now included, the payment usually rises, sometimes sharply.
How long does it take to pay off a HELOC?
On minimum payments, the length of the draw period plus the repayment period, often 20 to 30 years in total. Paying a fixed amount above the interest from today can cut that to a few years; enter a planned payment above to see your date.
Do HELOC rates change?
Usually, yes. Most HELOCs have a variable rate tied to an index, so the rate and payment can change over time. Some lenders let you convert part of the balance to a fixed rate.
Is it better to pay off a HELOC or my mortgage first?
Compare rates. HELOC rates are often higher than first-mortgage rates and can rise, so extra payments usually save more on the HELOC. Paying it down also reduces the payment jump when repayment begins.
Can I be asked to repay the whole HELOC at once?
Some HELOCs require the full balance when the draw period ends instead of a repayment schedule. Check your agreement for a balloon payment before relying on a monthly repayment plan.
Sources and assumptions
- Draw and repayment periods, variable rates, and full repayment at the end of the draw period: Consumer Financial Protection Bureau, "What is a HELOC?"
- The calculator assumes no new draws, a constant rate (except in the rate table), interest-only minimums during the draw period, and a level amortizing payment during repayment. Your agreement may set minimums differently; your monthly statement shows the actual required payment.
This calculator is an educational estimate, not financial or lending advice. Confirm your rate, minimum payment rules, and repayment terms with your lender. See the full disclaimer.