{
  "id": "heloc",
  "version": "bdf4a2fe70b4",
  "status": "published",
  "name": "HELOC Calculator",
  "question": "What will my HELOC payment be?",
  "summary": "Computes the home equity line of credit a combined loan-to-value limit allows, the interest-only payment in the draw period, and the payment and total interest in the repayment period.",
  "category": "finance",
  "subcategory": "loans",
  "url": "https://www.acalculator.org/finance/heloc-calculator",
  "markdown": "https://www.acalculator.org/finance/heloc-calculator.md",
  "kind": "schedule",
  "method": "credit line = V × limit − owed; draw-period payment = D × r; repayment payment = D × r ÷ (1 − (1 + r)^−R), with D the amount drawn, r the rate ÷ 12, and R the repayment months.",
  "assumptions": [
    "You draw the whole amount at the start and borrow nothing more.",
    "The rate stays fixed; most HELOCs have a variable rate, so real payments change with it.",
    "In the draw period you pay only the interest; the repayment period repays the balance in level monthly payments.",
    "Interest is charged monthly at the yearly rate ÷ 12, and nothing is rounded between months.",
    "Fees such as appraisal, annual, or closing fees are not included."
  ],
  "inputs": {
    "$schema": "https://json-schema.org/draft/2020-12/schema",
    "type": "object",
    "properties": {
      "value": {
        "title": "Home value",
        "description": "What your home is worth today, for example from an appraisal.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 1000,
        "maximum": 1000000000
      },
      "owed": {
        "title": "Mortgage balance",
        "description": "What you still owe on your mortgage and any other loans secured by the home.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000000
      },
      "cltv": {
        "title": "Lender’s limit (combined loan-to-value)",
        "description": "The most all loans on the home may add up to, as a percent of its value.",
        "type": "number",
        "x-unit": "percent",
        "minimum": 1,
        "maximum": 100
      },
      "draw": {
        "title": "Amount you draw",
        "description": "How much of the credit line you borrow, taken at the start of the draw period.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 1,
        "maximum": 1000000000
      },
      "rate": {
        "title": "Interest rate",
        "description": "The yearly rate on the line, taken as fixed. The monthly rate is this ÷ 12.",
        "type": "number",
        "x-unit": "percent",
        "minimum": 0,
        "maximum": 30
      },
      "drawYears": {
        "title": "Draw period (years)",
        "description": "The years you can borrow and pay only the interest.",
        "type": "integer",
        "minimum": 1,
        "maximum": 20
      },
      "repayYears": {
        "title": "Repayment period (years)",
        "description": "The years you repay the balance with principal and interest.",
        "type": "integer",
        "minimum": 1,
        "maximum": 30
      },
      "start": {
        "title": "Draw date",
        "description": "The day you draw the money. The first payment is one month later.",
        "type": "string",
        "format": "date"
      }
    }
  },
  "outputs": {
    "drawPayment": {
      "label": "Payment in the draw period",
      "description": "The interest-only monthly payment in the draw period: the amount drawn × the rate ÷ 12.",
      "format": "money"
    },
    "repayPayment": {
      "label": "Payment in the repayment period",
      "description": "The level monthly payment that repays the amount drawn over the repayment period.",
      "format": "money"
    },
    "jump": {
      "label": "Payment rise",
      "description": "How much the payment goes up when the repayment period starts.",
      "format": "money"
    },
    "line": {
      "label": "Credit line",
      "description": "The most you can borrow: the home value × the limit − what you owe.",
      "format": "money"
    },
    "unused": {
      "label": "Credit left unused",
      "description": "The credit line minus the amount you draw.",
      "format": "money"
    },
    "interest": {
      "label": "Total interest",
      "description": "All the interest over the draw and repayment periods.",
      "format": "money"
    },
    "total": {
      "label": "Total paid",
      "description": "The amount drawn plus all the interest.",
      "format": "money"
    },
    "combined": {
      "label": "Combined loan-to-value",
      "description": "What you owe plus the amount drawn, as a percent of the home value.",
      "format": "percent"
    },
    "repayStart": {
      "label": "First repayment payment",
      "description": "The month of the first principal and interest payment, when a draw date is given.",
      "format": "month-year"
    }
  },
  "defaultAnswer": {
    "inputs": {
      "value": 450000,
      "owed": 250000,
      "cltv": 85,
      "draw": 50000,
      "rate": 8.5,
      "drawYears": 10,
      "repayYears": 20,
      "start": "2026-09-30"
    },
    "outputs": {
      "drawPayment": 354.16666666666663,
      "repayPayment": 433.9116166827669,
      "jump": 79.74495001610029,
      "line": 132500,
      "unused": 82500,
      "interest": 96638.7880038641,
      "total": 146638.78800386412,
      "combined": 66.66666666666667,
      "repayStart": "2036-10-30"
    },
    "text": "Drawing $50,000.00 at 8.5% costs $354.17 a month in the draw period and $433.91 a month in the repayment period."
  },
  "examples": [
    {
      "given": {
        "value": 450000,
        "owed": 250000,
        "cltv": 85,
        "draw": 50000,
        "rate": 8.5,
        "drawYears": 10,
        "repayYears": 20
      },
      "expect": {
        "line": 132500,
        "drawPayment": 354.1666666666667,
        "repayPayment": 433.9116166827669,
        "interest": 96638.78800386403,
        "combined": 66.66666666666666
      },
      "source": "CFPB, What you should know about home equity lines of credit: interest-only payments in the draw period, then repayment; hand calculation in content.mdx, checked in Python 3 (docs/progress/WP-48/python/heloc.py)"
    },
    {
      "given": {
        "value": 300000,
        "owed": 150000,
        "cltv": 80,
        "draw": 90000,
        "rate": 9,
        "drawYears": 5,
        "repayYears": 15,
        "start": "2026-10-15"
      },
      "expect": {
        "line": 90000,
        "unused": 0,
        "drawPayment": 675,
        "repayPayment": 912.8399257456031,
        "repayStart": "2031-11-15"
      },
      "source": "hand calculation in content.mdx, checked in Python 3 (docs/progress/WP-48/python/heloc.py)"
    },
    {
      "given": {
        "value": 400000,
        "owed": 100000,
        "cltv": 85,
        "draw": 24000,
        "rate": 0,
        "drawYears": 1,
        "repayYears": 10
      },
      "expect": {
        "drawPayment": 0,
        "repayPayment": 200,
        "interest": 0,
        "line": 240000
      },
      "source": "hand calculation in content.mdx: at 0% the draw period costs nothing, then 24,000 ÷ 120"
    }
  ],
  "sources": [
    "Consumer Financial Protection Bureau, What you should know about home equity lines of credit (draw period, repayment period, variable rates, balloon payments). https://files.consumerfinance.gov/f/documents/cfpb_heloc-brochure_print.pdf",
    "Federal Trade Commission, Home Equity Loans and Home Equity Lines of Credit. https://consumer.ftc.gov/articles/home-equity-loans-and-home-equity-lines-credit",
    "Amortized loan payment (annuity) formula: S. A. Broverman, Mathematics of Investment and Credit, chapter 3."
  ],
  "related": [
    "home-equity-loan",
    "home-equity",
    "cash-out-refinance",
    "interest-only-mortgage"
  ],
  "changelog": []
}