Interest-Only HELOC Calculator
Interest-Only HELOC Calculator – Estimate Payments on Your Home Equity Line
Thinking of tapping into your home’s equity? Use our Interest-Only HELOC Calculator to see how much your monthly payments will be during the interest-only period of a Home Equity Line of Credit (HELOC).
Whether you’re funding a renovation, paying tuition, or consolidating debt, this tool helps you understand the real cost of borrowing against your home — with a clear breakdown of interest payments.
💡 What Is a HELOC?
A HELOC (Home Equity Line of Credit) is a flexible, revolving credit line secured by the equity in your home. Unlike a lump-sum loan, it works like a credit card — you borrow what you need, when you need it, up to a set limit.
HELOCs typically have two phases:
- Draw Period (5–10 years) – Pay only interest on the amount you use
- Repayment Period (10–20 years) – Pay back principal + interest
During the interest-only period, your payments are lower — but principal doesn’t reduce, which is why it’s crucial to calculate correctly.
🔧 How to Use the Interest-Only HELOC Calculator
This calculator helps you project monthly interest payments based on your usage and rate:
- Enter Loan Amount Used (Not Total HELOC Limit)
Example: $50,000 or ₹10,00,000 - Enter Annual Interest Rate (%)
Example: 8.5% - Choose Interest-Only Period (in months or years)
Example: 10 years - Click “Calculate”
Instantly see:- Your Monthly Interest-Only Payment
- Total Interest Paid over the draw period
🧮 Formula Behind the Calculator
javaCopyEditMonthly Interest Payment = (Loan Balance × Interest Rate) ÷ 12
For example:
If you borrowed $40,000 at 8% annual interest:
Monthly Interest = (40,000 × 0.08) / 12 = $266.67
You’d pay this each month during the interest-only draw period.
🧠 Example Calculation
Borrowed Amount: ₹15,00,000
Interest Rate: 9%
Interest-Only Term: 5 years
Monthly Payment = ₹15,00,000 × 9% ÷ 12 = ₹11,250
Total Interest Over 5 Years = ₹11,250 × 60 = ₹6,75,000
That’s ₹6.75 Lakhs in interest — without reducing your principal.
👤 Who Should Use This Calculator?
- 🛠️ Homeowners financing home improvements
- 👩🎓 Parents funding education
- 💼 Self-employed individuals managing cash flow
- 📊 Real estate investors using equity for new deals
- 🏦 Financial advisors evaluating client risk exposure
🌟 Features of Our Interest-Only HELOC Calculator
✅ Real-time interest-only payment estimates
✅ Supports USD, INR, EUR, GBP, JPY
✅ Works for any loan size and interest rate
✅ Clean, ad-free interface
✅ No login required
✅ Mobile + desktop optimized
📌 Why Use This Tool?
- Understand monthly cash outflow during draw period
- Compare HELOC vs personal loans or credit cards
- Plan early for principal repayment phase
- Avoid surprises with interest-only debt
- Make informed decisions before drawing funds