Calculate HELOC Monthly Payments
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Understanding the Payment Jump
The biggest financial shock most HELOC borrowers face is the transition from the draw period to the repayment period. During the draw period, you pay only interest — often a manageable amount that feels comfortable. When repayment begins, you owe both principal and interest on the full outstanding balance, which can nearly double your monthly obligation.
Real Example: $75,000 HELOC at 9%
During the draw period, the interest-only minimum on a $75,000 balance at 9.00% is $562.50 per month. When repayment starts over 20 years, that same balance requires a payment of $674.67 per month — a jump of about $112. If you make zero principal payments during the 10-year draw period, you still owe $75,000 when repayment begins. Paying an extra $300/month during the draw period could reduce your repayment balance to around $39,000, cutting the repayment payment nearly in half.
How Extra Payments Change the Math
Enter an extra monthly payment above to see how paying down principal during the draw period reduces your repayment balance and payment. Even $200–$300 extra per month during the draw period can save tens of thousands in total interest. For a complete payoff analysis, use our HELOC payoff calculator.
Frequently Asked Questions
What is the typical HELOC minimum monthly payment?
During the draw period, the minimum payment is typically interest-only — calculated as (Outstanding Balance × Annual Rate) ÷ 12. On a $50,000 HELOC balance at 9.00%, that's $375/month. Some lenders require a minimum of 1% of the outstanding balance or the interest charge, whichever is greater, but most major banks and credit unions use a pure interest-only minimum. You can always pay more than the minimum, and doing so is strongly advisable for managing your repayment-period payment. See our HELOC calculator to model your specific situation.
Can my HELOC payment go up if interest rates rise?
Yes — HELOC rates are variable and tied to the prime rate. When the Fed raises rates, your HELOC rate and monthly payment increase automatically, typically within one billing cycle. On a $75,000 balance, each 1-point rate increase adds about $62.50 per month. Use our HELOC rate calculator to model how rate changes affect your payment.
What happens if I can't make HELOC payments?
Missing HELOC payments puts your home at risk, since the HELOC is secured by your property. After 90 days of missed payments, most lenders can begin foreclosure proceedings. Before missing a payment, contact your lender immediately — most have hardship programs. Proactive communication is far better than avoiding the problem.
Should I make more than the minimum HELOC payment?
In almost all cases, yes. Making only interest-only minimums during the draw period means your full principal balance will be due at repayment — creating a payment shock and maximizing total interest cost. Paying an extra $300/month during the draw period reduces total interest by approximately $30,000 on a $60,000 balance and cuts the repayment payment significantly. Our payoff calculator shows the exact numbers for your balance.