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Draw-period interest-only vs full P&I repayment.
🏡 HELOC Calculator
Draw period payment
interest-only · yrs
Repayment period payment
principal & interest · yrs
Payment shock at repayment:
+/mo
(% higher)
Interest in draw phase
Interest in repayment
Total interest
Assumes you keep the same balance through the draw period (interest-only). HELOCs are variable-rate — actual rates can rise or fall with prime; budget for the repayment-phase payment, not the draw-phase payment.
How to Use
- Enter your outstanding line balance.
- Enter the draw rate and draw years (interest-only phase).
- Enter the repayment rate and repayment years (full P&I).
- Compare the small draw-phase payment with the larger repayment-phase payment.
Calculation Method
During the draw period the payment is interest-only: monthly = balance × APR ÷ 12. During the repayment period the same balance is amortized as P&I: M = P · [ r(1+r)^n ] / [ (1+r)^n − 1 ]. Payment shock = repayment monthly − draw monthly.
Examples
$50,000 line at 8.5%, 10-yr draw / 20-yr repay
Draw payment ≈ $354/mo (interest only). Repayment payment ≈ $434/mo (P&I) — a +$80 / 22% payment shock.
Frequently Asked Questions
A HELOC is a revolving line of credit at a variable rate. A home equity loan is a one-time lump sum, typically at a fixed rate.
During the draw period you only pay interest. When repayment begins, the entire balance must amortize over a shorter window, often doubling or tripling the monthly payment.
Almost always — they're typically tied to the prime rate plus a margin. Your payment can change as rates move.
Only if the funds are used to buy, build or substantially improve the home that secures the loan, and only if you itemize. Talk to a tax professional.
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Read guide →Disclaimer
Calculations are estimates based on the information you provide. Actual loan terms, rates, and payments vary by lender, credit score, and other factors. SmartLoanCalcs is not a lender and this is not a loan offer. We are not responsible for decisions made based on these calculations — consider consulting a licensed lender or financial advisor.
Last updated: May 24, 2026