HELOC Calculator
A HELOC calculator (Home Equity Line of Credit) estimates payments on a revolving credit line secured by your home equity. HELOCs have a draw period (typically 10 years) followed by a repayment period.
HELOC vs Home Equity Loan
| Feature | HELOC | Home Equity Loan |
|---|---|---|
| Type | Revolving credit | Lump sum |
| Rate | Variable | Fixed |
| Draw Period | Yes (5-10 years) | No |
| Best For | Ongoing expenses | One-time need |
| Interest | Only on used amount | On full amount |
HELOC Payment Examples
$50,000 credit line at 8% variable rate:
| Amount Used | Interest-Only (Draw) | Full Repayment (15yr) |
|---|---|---|
| $10,000 | $67/month | $96/month |
| $25,000 | $167/month | $239/month |
| $50,000 | $333/month | $478/month |
HELOC Calculator Implementation
``javascript
function calculateHELOC(amountUsed, rate, drawPeriodYears, repaymentYears) {
const monthlyRate = rate / 100 / 12;
// Interest-only payment during draw period
const interestOnly = amountUsed * monthlyRate;
// Full repayment after draw period
const repaymentMonths = repaymentYears * 12;
const fullPayment = amountUsed * monthlyRate / (1 - Math.pow(1 + monthlyRate, -repaymentMonths));
return {
interestOnlyPayment: interestOnly.toFixed(2),
fullPayment: fullPayment.toFixed(2),
totalInterestOnly: (interestOnly * drawPeriodYears * 12).toFixed(2),
totalFullRepayment: ((fullPayment * repaymentMonths) - amountUsed).toFixed(2)
};
}
console.log(calculateHELOC(50000, 8, 10, 15));
// { interestOnlyPayment: '333.33', fullPayment: '477.83' }
``
HELOC Considerations
HELOCs have variable rates that can increase significantly. Your home is collateral—defaulting means foreclosure. Use HELOCs for value-adding projects (renovations) rather than consumption (vacations).