Home Equity Line Payment Calculator (2025)

Understanding HELOC Draw Period Payment Shock

One of the biggest surprises for HELOC borrowers is the payment increase when the draw period ends. This calculator helps you prepare for that transition.

The Two Phases of a HELOC

Phase 1: Draw Period (Typically 5-10 Years)

Borrow money up to your credit limit
Make interest-only minimum payments
Principal balance doesn't decrease (unless you pay extra)
Lower monthly payments

Phase 2: Repayment Period (Typically 10-20 Years)

Can no longer borrow additional funds
Must repay both principal and interest
Payments typically double or triple
Balance decreases with each payment

Payment Shock Example

Scenario: $100,000 HELOC at 8% APR

During 10-Year Draw Period:
Interest-Only Payment: $667/month

After Draw Period Ends (20-Year Repayment):
Principal + Interest Payment: $836/month

Payment Increase: $169/month (25% jump)

If you made only minimum payments during the draw period, you still owe the full $100,000. Now you must pay it off over the remaining 20 years.

How to Avoid Payment Shock

Pay Principal During Draw Period: Even $100-$200/month reduces future shock
Budget for the Increase: Plan your finances assuming the higher payment
Refinance Before Draw Period Ends: Convert to fixed-rate home equity loan
Pay Down Balance: Use windfalls to reduce principal before repayment starts
Extend Draw Period: Some lenders allow extensions (with fees)

Real-World Impact

Many homeowners are caught off guard when their HELOC enters repayment. A $50,000 balance that cost $333/month in interest-only payments suddenly jumps to $418/month or more. Over a year, that's an extra $1,020 you need to budget for.

Options When Draw Period Ends

Continue with Repayment: Make the higher payments as scheduled
Refinance to Fixed Rate: Convert to home equity loan for stability
Pay Off with Savings: If you have the cash available
Sell the Home: Pay off HELOC from sale proceeds
Negotiate Extension: Ask lender to extend draw period (rare)

Warning Signs You're Not Prepared

You've been making only minimum payments
Your balance is close to your credit limit
You haven't budgeted for the payment increase
You're still borrowing against the HELOC regularly
Your draw period ends in less than 2 years

Expert Tips for Smart Borrowing

🔮Pro Tip

The 'Fake' Amortization

Pretend your repayment period has already started. Calculate what that payment would be and pay it now. You'll build massive equity and won't feel the shock later.

⏳Pro Tip

Refi early

Don't wait for the letter from the bank saying your payment is tripling. Shop for a new HELOC or Home Equity Loan 6 months before your draw period expires.

⚙️Pro Tip

Automate It

Don't rely on willpower. Set your autopay to 'Interest + $200'. You won't miss the $200, but future-you will thank you.

🗓️Pro Tip

The Refinance Window

Mark your calendar for 6 months BEFORE your draw period ends. Lenders assume you aren't shopping yet—use that time to find the best deal.

Frequently Asked Questions

You enter the 'Repayment Period'. Two things happen: 1) You can no longer borrow money from the line. 2) Your payment switches from 'Interest-Only' to 'Principal + Interest', causing the monthly bill to roughly double.

Sometimes. You can ask your lender for a 'modification' or simply refinance into a new HELOC to reset the clock. However, you will have to re-qualify with your current income and credit score.

Yes. Ideally, 1-2 years before your draw period ends, start looking for options. If your credit has dipped, you want time to fix it before you are forced into the higher repayment/amortization schedule.

During the draw period (e.g., 10 years), you ignored the principal. Now, you have to pay back the entire loan balance in the remaining time (e.g., 20 years). You are squeezing a 30-year active repayment into 20 years.

Yes! This is the #1 way to avoid payment shock. Every dollar of principal you pay now reduces the balance that will be amortized later, leading to a smaller jump in payments.

HELOC Draw Period Calculator