HELOC CalculatorHome equity line of credit payments for the draw and repayment periods, how much you can borrow, and the payment shock ahead
Find your maximum HELOC limit from your home’s value and combined loan-to-value, then see your interest-only payment during the draw period, the bigger payment when repayment starts, total interest, and how rate rises or extra payments change the picture. Rates reflect the 7.00% prime rate in October 2026.
By Manzoor Ahmad · 13+ years of web development & SEO experienceUpdated October 21, 2026 with current prime and HELOC rates
How much can you borrow?
How will you use the line?
Your rate and fees
Can you qualify?
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Balance and payments over the life of the line
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Rate stress test
HELOC rates float with prime. What if rates rise after you borrow?
| Rate | Draw payment | Repayment | Total interest |
|---|
HELOC vs. other ways to borrow
The same amount, compared on monthly payment and total interest.
| Option | Payment | Total interest |
|---|
Pay it off faster
Paying principal during the draw period shrinks both the payment shock and your total interest.
How HELOC payments are calculated
A HELOC (home equity line of credit) is a revolving credit line secured by your home. Its payment changes with two things: the phase you’re in and the variable rate (prime + your margin).
Credit limit = home value × max CLTV − mortgage balance
Draw-period payment (interest only) = balance × annual rate ÷ 12
Repayment payment = B × r ÷ (1 − (1 + r)−n)
Here B is the balance when the draw period ends, r is the monthly rate and n is the months of repayment. Because repayment adds principal, the payment can jump by 25%–60% or more on the same balance.
Worked example (the default inputs)
HELOC payment on $25,000 to $150,000
Monthly payments at 7.50% with a 10-year interest-only draw period and a 20-year repayment period.
| Balance | Draw period (interest only) | Repayment (20 years) | Total interest |
|---|---|---|---|
| $25,000 | $156 | $201 | $42,086 |
| $50,000 | $313 | $403 | $84,171 |
| $75,000 | $469 | $604 | $126,257 |
| $100,000 | $625 | $806 | $168,342 |
| $150,000 | $938 | $1,208 | $252,514 |
Total interest assumes you keep the full balance through the draw period, which is the most expensive way to use a HELOC. Paying even 1% of the balance each month during the draw period cuts the total substantially; try it in the “Draws” tab.
Current HELOC rates and home equity data
HELOC rates are built from an index, almost always the prime rate, plus a margin based on your credit, CLTV and lender.
Up from 6.75% after the Fed raised its target to 3.75%–4.00% in September 2026.
Bankrate’s national survey, October 14, 2026, with lenders ranging from 3.99% to 11.99%.
Curinos average on October 20, 2026 for 780+ credit and under 70% CLTV; home equity loans averaged 7.50%.
Held by 47.5 million US mortgage holders, about $212,000 each (ICE, August 2026).
Rates move with prime, so a quarter-point Fed change shows up on your next statement. With a fixed-rate first mortgage you don’t want to refinance, a HELOC or a home equity loan lets you borrow against equity without giving up that rate.
The two phases of a HELOC
Draw period (usually 10 years)
- Borrow, repay and borrow again up to your limit, like a credit card.
- Pay interest only on what you’ve drawn, though you can pay principal anytime.
- Your payment moves with prime and with your balance.
- Lenders can freeze or reduce your line if your home’s value falls.
Repayment period (usually 20 years)
- No more draws; the line closes.
- The remaining balance is amortized, so every payment includes principal.
- The jump in payment is called payment shock; plan for it years ahead.
- Some HELOCs end with a balloon payment instead; read your agreement.
How much HELOC can you get?
Most lenders cap your combined loan-to-value (CLTV) at 80%–85%, and some go to 90% or higher for strong borrowers. Typical qualification guidelines are a 680+ credit score, a debt-to-income ratio of 43% or less, and 15%–20% equity left after the line. If you aren’t sure how much equity you have, start with the home equity calculator.
| Home value | Mortgage | 80% CLTV line | 85% CLTV line | 90% CLTV line |
|---|---|---|---|---|
| $300,000 | $180,000 | $60,000 | $75,000 | $90,000 |
| $450,000 | $250,000 | $110,000 | $132,500 | $155,000 |
| $600,000 | $320,000 | $160,000 | $190,000 | $220,000 |
| $800,000 | $400,000 | $240,000 | $280,000 | $320,000 |
HELOC vs. home equity loan vs. cash-out refinance
| HELOC | Home equity loan | Cash-out refinance | |
|---|---|---|---|
| How you get money | Draw as needed up to a limit | Lump sum | Lump sum with a new first mortgage |
| Rate | Variable, tied to prime | Fixed | Fixed or adjustable |
| Your current mortgage | Kept | Kept | Replaced at today’s rate |
| Closing costs | Often low or none | Typically 2%–5% | Typically 2%–6% |
| Best for | Projects paid in stages, ongoing or uncertain costs | One known expense and a stable payment | When new mortgage rates beat your current rate |
Using a HELOC to pay off credit cards can save a lot of interest, but it turns unsecured debt into debt secured by your home. Compare the payoff plans with the debt consolidation calculator, and see a fixed-payment schedule with the loan amortization calculator.
Is HELOC interest tax deductible in 2026?
Only if you use the money to buy, build or substantially improve the home that secures the line, and only if you itemize. The 2025 tax law made the Tax Cuts and Jobs Act rules permanent: combined mortgage and home equity debt used for the home is deductible up to $750,000 ($375,000 if married filing separately). Interest on a HELOC used for a car, vacation, tuition or credit card payoff isn’t deductible. If you borrow against your home to buy a rental, the interest may be deductible as a rental expense instead; run the deal with the rental property calculator and check your tax treatment with a professional.
Six HELOC mistakes to avoid
- Budgeting only for the interest-only paymentPlan for the repayment payment from day one; it can be 25%–60% higher.
- Ignoring rate riskEvery 1% rise in prime adds about $8 a month per $10,000 borrowed during the draw period.
- Borrowing the full limit “just in case”You only pay interest on what you draw, so there’s no need to draw it all at once.
- Funding everyday spendingYour home is the collateral. Use the line for things that last longer than the loan.
- Falling for an intro ratePromotional rates usually last 6–12 months; compare the fully indexed rate and the margin.
- Not reading the fine printCheck annual fees, early-closure fees, minimum draws, conversion options and whether the line ends in a balloon payment.
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HELOC questions
How is a HELOC payment calculated?
During the draw period, most HELOCs require interest only: balance × rate ÷ 12. In the repayment period, the balance is amortized over the remaining term, so the payment covers principal and interest.
What is the monthly payment on a $50,000 HELOC?
At 7.50%, about $313 a month interest-only during the draw period, then about $403 a month over a 20-year repayment period.
What is the monthly payment on a $100,000 HELOC?
At 7.50%, about $625 a month interest-only, rising to about $806 a month over a 20-year repayment period.
How much can I borrow with a HELOC?
Usually up to 80%–85% of your home’s value minus your mortgage balance. On a $450,000 home with a $250,000 mortgage, that’s $110,000 at 80% or $132,500 at 85%.
What is the current HELOC rate?
Bankrate’s average was 7.34% on October 14, 2026, and Curinos reported 7.54% on October 20 for top-tier borrowers. The prime rate is 7.00%.
What happens when the HELOC draw period ends?
You can no longer borrow, and the balance converts to principal-and-interest payments over the repayment period, which usually raises your payment.
Can I pay off a HELOC early?
Yes. You can pay principal anytime. Some lenders charge an early-closure fee if you close the line within the first two to three years.
Is a HELOC or a home equity loan better?
A HELOC suits costs that come in stages or are uncertain; a home equity loan suits one known expense where you want a fixed rate and payment.
What credit score do I need for a HELOC?
Many lenders look for 680 or higher, with the best rates at 740–780+. You’ll also typically need a debt-to-income ratio of 43% or less.
Is HELOC interest tax deductible?
Only if the money is used to buy, build or substantially improve the home securing the line and you itemize, within the $750,000 limit on total home debt.
Can a lender freeze my HELOC?
Yes. Lenders can freeze or reduce a line if your home’s value drops significantly or your finances change materially.
Is this HELOC calculator free and private?
Yes. It’s free, needs no sign-up and runs entirely in your browser; nothing you enter is sent to or stored by DexoCalc.
Manzoor Ahmad
13+ years of web development & SEO experience · Founder, DexoCalc
Manzoor builds and maintains every DexoCalc calculator, including the mortgage, home equity and property libraries. This HELOC calculator simulates your line month by month, including extra draws, intro rates, rate changes, the lifetime cap, annual fees and extra payments, then re-amortizes the balance when repayment begins.
Sources
- Bankrate — Current HELOC rates (October 14, 2026 survey)
- Yahoo Finance / Curinos — HELOC and home equity loan rates, October 20, 2026
- PrimeRates.com — Prime rate at 7.00% (Federal Reserve H.15)
- ICE Mortgage Monitor — Tappable equity, August 2026
- CFPB — What is a home equity line of credit (HELOC)?
- IRS Publication 936 — Home Mortgage Interest Deduction
This calculator gives estimates for planning, not lending or tax advice. Actual rates, limits, fees and payment rules vary by lender and change with the prime rate. Your home secures a HELOC, so you could lose it if you can’t repay. Review your lender’s disclosures before you borrow.