Line of Credit Calculator: HELOC & LOC Payoff Planner
Our Line of Credit Calculator models HELOCs, personal lines, and revolving credit. See monthly interest, payoff time, max balance. Add draws, payments, interest-only periods.
What is a Line of Credit?
Revolving credit up to a limit. Borrow, repay, re-borrow. Interest on outstanding balance only. HELOCs secured by home; personal LOCs unsecured.
Key Features
- Draw Period: Borrow freely (often interest-only)
- Repayment Period: Fixed payments to pay down
- Variable Rate: Tied to prime rate
- Flexible Use: Home improvement, emergencies, investments
How to Use
- Enter credit limit and initial draw
- Set interest rate and interest-only months
- Add monthly payment and ongoing draws
- Get full schedule, payoff time, interest cost
HELOC Example
$100K limit, $50K initial draw, 8.5%, 10-yr draw (interest-only), $1,000/mo after:
- Interest-only: ~$354/mo
- Payoff in ~7.5 years after draw
- Total interest: ~$32,000
Interest-Only vs Repayment
| Phase | Payment | Principal Paid |
|---|---|---|
| Draw (10 yrs) | Interest only | $0 |
| Repayment | Fixed $1,000 | Balance ↓ |
Payoff Strategies
- Aggressive: Pay > minimum
- Stop Drawing: Freeze new borrowing
- Refinance: To fixed loan
- Lump Sum: Pay down with bonus
Pros
- Flexible access
- Pay interest on used amount
- Reusable credit
- Lower rates (HELOC)
Cons
- Variable rates
- Risk of over-borrowing
- Home at risk (HELOC)
- Payment shock post-draw
HELOC vs Home Equity Loan
- HELOC: Revolving, variable rate
- Loan: Lump sum, fixed rate
Pro Tips
- Track balance monthly
- Pay more than interest
- Refinance before draw ends
- Use for appreciating assets
Pair with Other Tools
Compare with Home Equity Loan or Debt Consolidation.
Conclusion
Manage your line of credit wisely. Use our Line of Credit Calculator to avoid surprises and pay off faster. Explore more in Finance Calculators.