Our HELOC calculator Excel spreadsheet is fast, simple, and free! Easily calculate a variety of HELOC scenarios based on a number of fully-configurable input values. Our HELOC calculator Excel spreadsheet enables you to:
- Calculate unlimited HELOC scenarios based on fully configurable interest rates, draw periods, loan terms, lump sum pay downs, and extra payments.
- Easily calculate HELOC payments and amortizations for the interest-only draw period and the fully amortized repayment period of your HELOC.
- Calculate how changing interest rates could impact your payment and interest costs over the life of the loan.
- Learn how lump sum pay downs can reduce your monthly payment and the total interest you pay over the life of the loan.
- Discover how extra payments can reduce your monthly payment and total interest costs over the life of the loan.
- Estimate the potentially large payment increase at the end of the draw period. This is an important HELOC risk to be aware of if you carry a large balance long term.
- Check current HELOC interest rates. We’ve also included links to our convenient interest rate marketplace, where you can check out current HELOC and refinance interest rates offered by a variety of lenders all in one place.
HELOC Calculator Free Download Link
If you’re ready to download our HELOC calculator Excel spreadsheet, simply click the link below. You may get a popup that asks where you would like to save the file, depending on the type of computer or device you’re using. Note that the calculator requires Microsoft Excel 97 or later.
DOWNLOAD LINK: https://www.myhecm.com/reports/heloc-calculator-1.0.xls
HELOC Rates For Today
Want to see more options? Check all HELOC rates here
Table of Contents
HELOC Payment Calculator Excel With Extra Payments
Our HELOC payment calculator with amortization easily calculates the interest-only draw period payments and the fully-amortized payments once the draw period ends. You can even calculate the impact of extra payments and lump sum pay downs on your loan balance, payment, and interest costs over the life of the loan.
To download our HELOC calculator Excel spreadsheet, click here.
How To Use Our HELOC Calculator Excel Spreadsheet
We think you’ll find out HELOC payment calculator Excel template to be very easy to use. Just plug in a few values to illustrate a variety of HELOC scenarios in seconds. Here’s how to use the calculator:
Step 1: Starting Date and Loan Balance
Enter the starting date and loan balance into the fields at the upper left of the calculator.
Step 2: Interest Rate
Enter the interest rate you would like to use for the calculation in the field at the upper left of the calculator.
HELOCs typically have adjustable interest rates, which means your rate can change over time based on conditions in the financial markets. Our HELOC calculator Excel spreadsheet enables you to configure variable interest rates over the life of the loan, which helps you estimate the impact on your payment and lifetime interest costs (more on that shortly).
Step 3: Draw Period
The draw period is the initial portion of the loan term in which you can borrow against the available credit. The monthly payment during the draw period is typically interest-only.
Once the draw period ends, the lender will recalculate your payment to include both principal and interest so that the loan pays off at the end of the loan term.
Enter the length of the draw period in years in the field at the upper left of the calculator. For example, if the initial draw period is ten years (which is common), enter the number 10.
Step 4: Loan Term
Enter the total loan term in years in the field at the upper left of the calculator. For example, if the loan matures in twenty years, enter the number 20.
If the loan term equals the draw period, the calculator will assume an interest-only loan with a balloon payment at the end of the loan term.
If the loan term is longer than the draw period, the HELOC calculator Excel spreadsheet will calculate the interest-only payment for the draw period and a fully-amortized payment for the remainder of the loan term.
Tips and Tricks
Interest rate changes – Most HELOCs have variable rates, so we designed our HELOC calculator Excel spreadsheet with that in mind. You can illustrate the impact of increasing or decreasing interest rates by inputting your own interest rate values into the “Adjust Interest Rate” column.
Lump sum paydowns – HELOCs are attractive to many homeowners because of their flexibility. You can borrow and repay at your convenience in a revolving manner. Because of this, we’ve designed our HELOC calculator Excel spreadsheet to illustrate the impact of lump sum pay downs.
To show how a lump sum pay down impacts your payment and total interest over the life of the loan, simply plug dollar amounts into the “Lump Sum Pay Down” column on the far right of the HELOC calculator Excel spreadsheet.
Extra payments – Need a HELOC payment calculator Excel spreadsheet that calculates extra payments? You’re in the right spot! Simply add your extra principal payments to the “Lump Sum Pay Down” column on the right of the spreadsheet.
Calculating a fully-amortized loan – If you want to calculate a fixed-rate fully amortized loan, simply set the draw period to zero. The HELOC calculator Excel spreadsheet will assume the loan payment is fully amortized and pays off the loan in full at the end of the loan term.
Balloon payments – Some HELOCs have interest-only payments for the life of the loan and a balloon payment at the end of the loan term. To calculate a balloon payment scenario, set the draw period equal to the loan term.
How Do HELOCs Work?
A home equity line of credit (HELOC) is a type of home loan used by homeowners to borrow against their home equity on a revolving basis. In other words, you can borrow, repay, and reborrow again as needed similar to how a credit card works.
HELOCs are attractive because of their flexibility. Other home equity loan options require you to borrow the full amount up front even if you don’t need all the money right now. HELOCs allow you to borrow against your available credit on an as-needed basis. This helps keeps your loan balance and interest costs lower.
Homeowners commonly use HELOCs to consolidate high-interest debt, make large purchases, or finance home improvements.
Most HELOCs are structured as second mortgages that go “behind” an existing mortgage, but you don’t need to have an existing mortgage to get a HELOC.
The following are some of the most notable features of a HELOC:
- Revolving credit line. HELOCs work similarly to credit cards in that you can borrow and repay and reborrow again at your convenience.
- Interest-only payments. Most HELOCs have low minimum payments that cover just the interest.
- Loan terms of 20 to 30 years. Loan terms vary from one lender to the next, but HELOCs typically come with loan terms of 20 to 30 years.
- Adjustable rates. Most HELOCs have adjustable interest rates that can change over time.
- Flexible loan amounts. HELOC credit lines can be as small as $10,000 or as large as $250,000, depending on your needs and qualifications.
- Borrow up to 80% of your home’s value. Most HELOCs allow you borrow up to a loan-to-value (LTV) or combined loan-to-value (CLTV) of 80% of the value of your home.
- Initial 10-year draw period. Most HELOCs allow you to draw on the available credit for the first ten years of the loan. Once ten years have passed, the credit line closes and the lender recalculates the payment into a fully amortized payment that pays off the loan balance over the remaining loan term.
You may hear mortgage or banking professionals refer to HELOCs as “home equity loans”. The terms “HELOC” and “home equity loan” are often used interchangeably. Both typically refer to a second mortgage product used to cash out home equity, but they function in different ways.
HELOCs are structured as a credit line that you can borrow from, repay, and borrower from again at your convenience. HELOCs usually have variable interest rates and interest-only payments.
When you take out a home equity loan, you’re required to borrow the full amount at closing even if you don’t need all the money right now. Home equity loans usually feature fixed rates and fully-amortized payments over a loan term of 10 to 20 years.
Potential HELOC Pitfalls
The HELOC is a great loan product, but it comes with some potential pitfalls. Keep in mind that these potential pitfalls don’t make the HELOC a bad loan product. Whether or not it’s risky or bad for you depends on your situation and how you plan to use it.
Here are some things you’ll want to think about as you evaluate whether a HELOC is the right loan for your needs:
- Variable interest rates. HELOC rates are usually variable. If interest rates increase, your payment will increase as well. Our HELOC calculator Excel spreadsheet is designed to illustrate the impact of changing interest rates on your payment and interest costs over the life of the loan.
- Interest-only payments. Payments only cover the interest, which means you aren’t paying down the debt unless you make extra principal payments.
- The more you borrow, the higher your payment. If you increase your principal balance, your payment will increase as well (assuming rates don’t drop drastically).
- Reduced equity. If you owe a large amount on your home, it could be difficult to sell it if home values fall.
- The recast. It can be risky to carry a large HELOC balance until the end of the draw period. Remember, the lender closes out the available credit and recalculates the payment into a fully-amortized payment that pays off the loan over the remaining loan term. This can make your payment double, triple, or even quadruple. Our HELOC calculator Excel spreadsheet is designed to estimate your potential payment at the end of the draw period.
- Prepayment penalties. Prepayment penalties are less common today than in the past, but HELOCs sometimes have them for the first few years of the loan. Be sure to ask about prepayment penalties when you apply for a HELOC.
HELOCs vary from one lender to the next. Other features or requirements could apply that we haven’t covered here. We recommend that you carefully read the entire loan agreement before signing it.
If you or your spouse are over the age of 62, you may also consider a reverse mortgage.
Frequently Asked Questions
What is the formula to calculate a HELOC payment?
Most HELOCs start off with interest-only payments, which are easy to calculate. Simply divide the current annual interest rate by 12 to determine the monthly interest rate. Multiply the monthly interest rate by the current loan balance to determine the payment.
Here’s the formula: ( Annual Interest Rate / 12 Months ) * Current Loan Balance
What is the monthly payment on a $50000 HELOC?
The payment depends on your interest rate. Most HELOCs start off with interest-only payments, which are easy to calculate. You simply divide the current annual interest rate by 12 to determine the monthly interest rate. Multiply the monthly interest rate by the current loan balance to determine the payment.
Does HELOC use amortization schedule?
Yes, a HELOC has an amortization schedule like any other loan. You can download the free HELOC calculator Excel spreadsheet on this page to estimate payment, total interest costs, and amortization of a variety of HELOCs.
Where can I find a HELOC payment calculator using principal and interest in Excel?
You can find one on this web page. Our HELOC payment calculator Excel spreadsheet calculators the interest-only payment during the draw period and the fully amortized payment once the draw period ends.
Where can I find a HELOC payment calculator Excel with extra payments?
You can find one on this web page. Our free downloadable calculator enables you to calculate the impact of extra payments on your balance and the total interest over the life of the loan.