RightFiguresThis page estimates two payments from a home-equity line balance you have already drawn, one annual rate, and a repayment term. It does not estimate a credit limit, a property value, or a combined loan-to-value ratio that uses the full credit line.
Interest only, and a full repayment
The interest-only figure is one month of interest on the drawn balance. The balance does not fall. The CFPB’s home-equity line booklet illustrates $10,000 at 10% as $83 and at 15% as $125. Those illustrations are simplified. This page rounds half-up to the cent, so the same balances are $83.33 and $125.00.
The other figure repays that whole balance over the term you enter, with no further draws, at the rate you enter. The rate is held constant for every month. A final payment can be larger than the regular payment, and that result is shown. At $10,000 and 25% for 50 years, the regular payment equals one month of interest until a final payment of $10,208.33.
A one-cent balance can pay off in the first month. A 0% rate has a $0.00 interest-only payment. A positive rate on a very small balance can also round to $0.00, and the result says so.
What a HELOC can do that this page does not
A HELOC rate can change, and a servicer may calculate interest differently, often on a daily balance. Many plans also use a draw period and then a repayment period, and set a minimum payment. This estimate uses one month of interest at the rate you type. It does not approve a line of credit.
Equity and loan-to-value, without a payment, are on the home equity calculator.
Sources & review
- What is a home equity line of credit (HELOC)? — Consumer Financial Protection Bureau
- What you should know about home equity lines of credit — Consumer Financial Protection Bureau
Last reviewed: . The formula is reproduced above so you can check the math independently.
Educational estimate at one rate you enter. It does not approve a line of credit or set a credit limit.