Equity Line of Credit Payments
What will my monthly payments be for an interest only equity line of credit?
How the equity line of credit payments calculator works
A home equity line runs in two phases. The calculator shows the low interest-only payment during the draw period — when the balance does not fall — and the higher principal-and-interest payment once the repayment phase begins.
Worked example: with outstanding balance of $40,000, interest rate of 8.50% and repayment period (years) of 10, the equity line of credit payments shows interest-only payment of $283.33.
- Interest-only (draw)
- $283.33
- Repayment payment
- $495.94
- Interest in repayment
- $19,513
- Balance
- $40,000
The formula
Interest-only payment = balance × monthly rate. Repayment payment = balance × r ÷ (1 − (1 + r)⁻ⁿ) over the repayment months.
Results are estimates for educational purposes and are not financial advice. Confirm exact figures with your lender, plan administrator or advisor.
Questions about the equity line of credit payments
Why does my HELOC payment jump?
During the draw period you pay only interest, so the balance stays put. When repayment begins the full balance must amortize over fewer years, raising the payment sharply.
How long is the draw period?
Commonly 10 years, followed by a 10–20 year repayment phase. The calculator focuses on the payment difference between the two so you can prepare.
Can I pay principal during the draw period?
Usually yes, and doing so lowers the eventual repayment payment. Paying only the interest-only minimum is what creates the later jump.
Is the Equity Line of Credit Payments free to use?
Yes. Every calculator on FinCalculators is completely free, with no sign-up, login or paywall. You can run as many scenarios as you like.