Home Equity Line of Credit (HELOC) Calculator
This Home Equity Line of Credit (HELOC) Calculator helps you estimate your new monthly payment, including repayment of the outstanding balance, new monthly charges, and any annual fees.
HELOC Monthly Payment Calculator
HELOC Payment Formula
$$\text{New Monthly Payment} = \frac{(r \times \text{Balance})}{1 – (1 + r)^{-n}} + \text{New Charges per Month} + \frac{\text{Annual Fee}}{12}$$
Where:
- $$r$$ = Monthly interest rate (annual interest rate divided by 12)
- $$Balance$$ = Outstanding loan balance
- $$n$$ = Number of months to repay
- $$New Charges per Month$$ = Additional monthly withdrawals
- $$Annual Fee$$ = Annual maintenance fee for the HELOC
- $$New Monthly Payment$$ = Total monthly payment required
The HELOC Calculator helps homeowners project their monthly payments when using a home equity line of credit. It accounts for principal and interest payments, additional draws on the line of credit, and associated annual fees. This tool is ideal for financial planning and debt management.