US HOME EQUITY · HELOC DRAW AND REPAYMENT
HELOC Interest-Only vs Repayment Calculator
An interest-only HELOC payment can look affordable, then jump when the lender asks you to pay principal. Compare the two scenarios before relying on your home's equity.
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Calculation results
Assumes an unchanged fully drawn balance and rate. A variable-rate HELOC can require a balloon or different minimum payments.
Estimate only. A bank, employer, tax office or lender may apply additional conditions. See the scope and source below.
When and how to use this calculator
An illustrative $100,000 fully drawn HELOC at an unchanged 8% nominal APR needs about $666.67 a month in interest alone. Paying the balance back over the next 20 years requires more each month even if the rate stays unchanged.
- Enter only the current outstanding HELOC balance, not the entire approved credit line.
- Use a written lender quote for the present variable rate. The calculator fixes it only to compare the scenarios; real HELOC rates may change.
- Enter a hypothetical repayment period and interest-only draw duration. Compare the payment jump and ask if your plan has balloon repayment, variable minimums, annual fees or early closure charges.
Understand your result
The draw-period balance, nominal APR and full amortization terms are held constant for comparison. Excludes fees, daily accrual, new draws, variable-rate paths, lender minimum payment schedules, home valuation and foreclosure legal processes.
Questions people ask
Does a HELOC always allow interest-only repayments?
No. Some require minimum principal repayment even during the draw period.
Can the HELOC repayment suddenly become due in full?
Some products have a balloon due at the end of the draw period. The amortization illustration does not represent such a product.
What happens if my rate rises?
Interest-only and amortizing payments may rise, and missed repayments risk your home.
Reference and calculation scope
Source material is provided for independent checking. Our calculator is not a government or bank service.