Heloc Amortization Calculator

The HELOC Amortization Calculator helps users determine their monthly payments, total interest, and overall amount paid during both draw and repayment periods for a Home Equity Line of Credit.

Use Our Heloc Amortization Calculator

How to Use the HELOC Amortization Calculator

This guide will walk you through the steps to effectively use the HELOC Amortization Calculator to determine your monthly payments and total interest over both the draw and repayment periods of a Home Equity Line of Credit (HELOC).

Step 1: Input Your Details

Begin by filling out the required fields with your specific details. Here is what you need to provide:

  • Credit Limit ($): Enter the total credit limit of your HELOC. This value should be between $10,000 and $1,000,000. This is a required field.
  • Initial Draw Amount ($): Enter the initial amount you plan to draw from your credit limit. This value must be $0 or greater. This is a required field.
  • Annual Interest Rate (%): Provide the annual interest rate of your HELOC. This input requires a percentage value between 0.01% and 30% with increments of 0.01%. This is a required field.
  • Draw Period (Years): Specify the number of years for the draw period. You can select a period between 1 and 10 years. This is a required field.
  • Repayment Period (Years): Indicate the number of years for the repayment period, selecting between 10 and 20 years. This is a required field.
  • Payment Type During Draw Period: Choose whether the payments during the draw period will be “Interest Only” or “Principal & Interest”. This is a required selection.

Step 2: Understand the Results

Once you have entered all the required information, the calculator will provide you with detailed results for better financial planning. The following fields will be displayed:

  • Monthly Payment During Draw Period: This shows your monthly payment during the draw period, calculated based on your payment type selection (interest only or principal and interest). The value is presented in USD with two decimal points for precision.
  • Monthly Payment During Repayment Period: This indicates your monthly payment during the repayment period, considering the entire principal drawn. This is also displayed in USD with a precision of two decimal points.
  • Total Interest (Draw Period): The total interest you will pay during the draw period, which varies based on whether you choose to pay interest only or both principal and interest.
  • Total Interest (Repayment Period): The total interest accrued during the repayment period is calculated and displayed here.
  • Total Interest Paid: This field displays the sum of the total interest from both the draw and repayment periods, providing a comprehensive look at your interest burden.
  • Total Amount Paid: Displayed here is the total amount you will have paid, including both principal and all interest costs across both periods. This figure is crucial for understanding the overall cost of your HELOC.

Step 3: Review and Plan

With the results provided by the HELOC Amortization Calculator, you now have a detailed financial outlook concerning your Home Equity Line of Credit. Use this information to review your financial strategy, assess the feasibility of your current HELOC plan, and make any necessary adjustments to better manage your debt and expenses.