HELOC payment calculator: draw period vs. repayment
Estimate HELOC payments: interest-only during the draw period, the jump when repayment starts, your maximum line, and a rate-rise stress test at today's prime rate.
The short answer
A HELOC payment is usually interest-only during the draw period: balance times rate divided by 12. On a $60,000 draw at 8.50% (the 7.00% prime rate on Oct. 20, 2026 plus an illustrative 1.50% margin), that is $425 a month. When the 20-year repayment period starts, the payment rises to about $521 for principal and interest, and to about $599 if the rate climbs 2 points.
How HELOC payments work
A home equity line of credit has two phases. During the draw period, often 10 years, you can borrow up to your limit and many lenders let you pay interest only. During the repayment period, often 20 years, you can't draw more and you pay back principal plus interest (CFPB). Most HELOCs have a variable rate tied to the prime rate, so the payment moves when the Fed changes rates.
Interest-only payment = balance × rate ÷ 12. The repayment payment uses the standard amortization formula over the repayment term.
Worked example: the payment jump
| $60,000 balance | At 8.50% | If the rate rises to 10.50% |
|---|---|---|
| Draw period, interest only | $425 a month | $525 a month |
| Repayment, 20 years | $521 a month | $599 a month |
| Total interest (10-year draw + 20-year repayment) | about $116,000 | higher |
The rate in the example is illustrative: 7.00% prime (Federal Reserve H.15, Oct. 20, 2026) plus a 1.50% margin. Your margin depends on the lender, your credit score and your combined loan-to-value ratio.
How much can you borrow?
Maximum line = home value × lender's maximum combined LTV − mortgage balance. At 85% on a $500,000 home with $300,000 owed, the line can be up to $125,000. Limits vary by lender; many fall between 80% and 90%.
Comparing options? See HELOC vs. home equity loan and cash-out refinance vs. HELOC in 2026.
Frequently asked questions
How is a HELOC payment calculated?
During the draw period, interest-only payments are the balance times the rate divided by 12: $60,000 at 8.50% is $425 a month. In repayment, the balance is amortized over the remaining term, like a mortgage.
What is the monthly payment on a $50,000 HELOC?
At 8.50%, interest only is about $354 a month. Repaid over 20 years at the same rate, it is about $434 a month.
Do HELOC payments go up after the draw period?
Usually yes. You start repaying principal as well as interest, so a $60,000 balance at 8.50% goes from $425 to about $521 a month over 20 years.
What is the current HELOC rate based on?
Most HELOCs are priced at the prime rate plus a margin. The prime rate was 7.00% on Oct. 20, 2026 (Federal Reserve H.15).
Can I pay principal during the draw period?
Usually yes, and doing so lowers both the interest you pay and the jump when repayment starts. Check your HELOC agreement for any fees.