HELOC payment calculator
Estimate the interest-only payment on a HELOC and compare it with the payment needed to clear the balance over a set number of years.
Mortgage rules last reviewed: September 29, 2026
Example rate — HELOCs are usually priced at prime plus a margin
- Monthly payment to clear it in 10 years
- $579.25
- Interest over 10 years, paying interest only
- $34,750
- Balance still owed after interest-only payments
- $50,000
- Interest over 10 years, paying it down
- $19,511
For illustration only. Not a rate quote, approval or pre-qualification.
How this is calculated
- HELOC interest is charged monthly on the balance, so this uses monthly compounding rather than the semi-annual compounding used for regular mortgages.
- A HELOC rate is variable, so your payment moves when prime changes. These figures are only an estimate at the example rate.
- Paying interest only keeps the balance where it is. Only the paying-it-down option reduces what you owe.
Calculator disclaimer
Calculators are provided for general informational and illustrative purposes only.
Results are estimates and may not reflect lender-specific qualification requirements, mortgage-insurance premiums, taxes, fees, available products, payment calculations or other transaction costs.
Calculator results do not constitute:
- Mortgage approval
- Pre-approval
- A rate commitment
- A lending commitment
- Financial advice
- Tax advice
- Or legal advice
Mortgage rules, rates and lender requirements can change.
For advice about your specific circumstances, speak with the appropriate licensed professional.
But how does this apply to your business income?
This calculator estimates the numbers you entered. How a lender treats your salary, dividends or business income is a separate question, and it's the one the Mortgage Readiness Review looks at first.