Home › Calculators › HELOC Payoff Calculator
Free HELOC calculator
HELOC Payoff Calculator
Want to be HELOC-free sooner? Enter your balance, rate, and monthly payment to see your payoff date — then raise the payment to see how much time and interest extra payments save.
Your result
Estimates only, for education — not financial advice. Most HELOC rates are variable and payments will change if your rate changes. Verify figures with your lender.
How the payoff math works
Each month, interest accrues on your balance and your payment wipes out the interest first — whatever is left over reduces principal. Because the interest portion shrinks as the balance falls, a fixed payment pays the loan off faster than you’d guess from simple division. The payoff month comes from n = −ln(1 − rP/pmt) ÷ ln(1+r).
Worked example
On a $50,000 balance at 8.5% APR, paying $600 a month clears the debt in about 10 years and 7 months, with roughly $26,200 in total interest. Bump the payment to $800 and the payoff drops to under 7 years with roughly $16,400 in interest — nearly $9,800 saved.
Why extra payments matter so much on a HELOC
HELOC rates are usually variable and higher than first-mortgage rates, so interest compounds against you quickly. Extra principal payments during the draw period do double duty: they cut the balance that will later be amortized and reduce the payment shock when repayment begins. Even $100 extra a month moves the payoff date by years on typical balances.
Frequently asked questions
What is the fastest way to pay off a HELOC?
Pay more than the minimum every month — ideally a fixed amount well above the interest charge. Extra principal payments shorten the term dramatically because less interest accrues each subsequent month.
Is there a prepayment penalty on a HELOC?
Most HELOCs have no prepayment penalty, but some lenders charge an early-closure fee if you close the line within the first 2–3 years. Check your agreement before making a lump-sum payoff.
Should I pay off my HELOC before the draw period ends?
If you can, yes — entering repayment with a zero or small balance means little or no payment shock. At minimum, try to pay down principal steadily during the draw years.
What is the minimum payment on a HELOC?
During the draw period it’s usually interest-only — on $50,000 at 8.5%, about $354 a month. In repayment it becomes principal plus interest. Your statement shows the exact required minimum.
Does paying off a HELOC hurt your credit?
Paying it off generally helps: it lowers your credit utilization and shows responsible management. Closing the line may slightly reduce your available credit mix, but the effect is usually small and temporary.