Heloc Interest Calculator

The HELOC Interest Calculator assists users in determining monthly and annual payment amounts, available credit, and total interest costs based on their home equity line of credit details.

Use Our Heloc Interest Calculator

Step-by-Step Guide to Using the HELOC Interest Calculator

Understanding the Calculator

The HELOC Interest Calculator helps you determine various financial metrics based on your Home Equity Line of Credit (HELOC). It calculates monthly payments, total interest costs, and available credit, among other details. Follow the steps below to use the calculator effectively.

Entering Input Data

Begin by entering the required input data. Ensure that all values comply with the specified constraints:

  • Credit Line Amount ($): Enter the total credit limit of your HELOC. The amount should be between $10,000 and $1,000,000 and must be a multiple of $1,000.
  • Amount Drawn ($): Input the amount you have already drawn from your credit line, which must be a multiple of $100 and cannot be negative.
  • Annual Interest Rate (%): Specify the current interest rate. It should be between 0.01% and 30%, with increments of 0.125%.
  • Payment Type: Select your payment type from the dropdown options: “Interest Only” or “Principal and Interest”.
  • Repayment Term (Years): Enter the term over which you plan to repay. It must be between 5 and 30 years.

Understanding the Results

Once you’ve entered all required data, review the calculated results:

  • Monthly Interest Payment: This is calculated using the formula (drawnAmount * (interestRate/100))/12, giving you the monthly payment if you’re paying interest only.
  • Monthly Principal & Interest Payment: If you opted for “Principal and Interest”, this value shows your estimated monthly payment, considering both the principal and interest.
  • Available Credit: Calculated as creditLine – drawnAmount, representing the remaining credit available to you.
  • Annual Interest Cost: Indicates the total cost of interest over a year, calculated by multiplying the monthly interest by 12.
  • Total Interest Over Term: This shows the total interest you will pay over the repayment period, depending on your selected payment type.
  • Effective Annual Rate: Calculated as (pow(1 + interestRate/100/12, 12) – 1) * 100, this percentage reflects the compounded annual interest rate.

Review these calculated figures to make informed decisions about managing your HELOC.