How to use the HELOC payoff calculator
- Your HELOC. The balance and APR from your latest statement, then the years of interest-only payments left and the repayment length from your agreement. The interest-only years usually match the draw period, though not on every plan. Already repaying? Choose "None left" and the years still to go.
- Pay extra. A monthly amount on top of the required payment, a one-time payment, or both, and the year you want the line gone.
- Results. The new payment and its jump, both payoff dates, the interest saved and the payment that clears the line by your year. The breakdown shows the math.
The payment jump when the draw period ends
On most plans two things change on the same day: new draws stop, and every payment starts to include principal. Chase is an exception: draws stop after 3 years, while payments stay interest-only for 10. The CFPB says repayment is often scheduled over 10 or 20 years and that monthly payments are often significantly higher once it begins. Citizens tells its borrowers that an interest-only payment will rise at the end of the draw period even if the interest rate stays the same.
How big the jump is depends on the length of the repayment period. Here is a $75,000 balance at 8% that costs $500 a month while it is interest only. The 8% is an example rate: the prime rate, 7% on October 2, 2026 (FRED), plus 1 point.
| Repayment period | Monthly payment | Up from $500 | Interest while repaying |
|---|---|---|---|
| 10 years | $910 | +$410 (82%) | $34,195 |
| 15 years | $717 | +$217 (43%) | $54,013 |
| 20 years | $627 | +$127 (25%) | $75,559 |
| 25 years | $579 | +$79 (16%) | $98,659 |
| 30 years | $550 | +$50 (10%) | $123,116 |
A shorter repayment period means a bigger monthly step and less interest overall. Lenders publish different lengths: Citizens converts the balance to a 15-year repayment period, Bank of America, TD, Truist and Regions pair a 10-year draw with 20 years of repayment, and PNC's repayment period can run up to 30 years. Navy Federal's draw period itself lasts 20 years.
When a balloon payment is due
Not every plan repays the balance in equal installments. Under Regulation Z, if paying only the minimum may leave part of the balance unpaid, the lender's disclosures must say so and warn that a balloon payment may result. The CFPB describes the options for that lump sum as refinancing with the same lender, a loan from another lender, or other means, and warns that failing to pay it in full could cost you your home. The same disclosures include an example of how long a $10,000 balance takes to repay at the minimum payment.
U.S. Bank spells out what its customers see at the end of the draw: the line can no longer be used, the variable rate can no longer be switched to a fixed rate, extensions are not offered, and a line that reaches the end of the draw with a zero balance is closed.
Can you pay off a HELOC early?
Yes. Extra payments lower the balance when the lender applies them to principal; your agreement shows how. U.S. Bank, for example, lets customers make additional principal payments above the required monthly payment. A lower balance means less interest from the next month on.
Example: $75,000 at 8%, 3 interest-only years left, 20 years of repayment. Paying $200 extra a month clears the line in 14 years and 2 months instead of 23 years and saves $41,482 of interest.
What can cost money is closing the line in its first years. The CFPB lists a cancellation fee among HELOC charges, typically in the first two or three years. These lenders publish their terms (listed A-Z, from their own pages read on October 7, 2026):
| Lender | Charge for closing early | When it applies |
|---|---|---|
| Bank of America | $450 (not on lines under $25,000, in Maryland or on Texas homesteads) | closed within 36 months |
| BMO | a closing cost recoupment fee may be charged | closed within 36 months |
| Figure | no prepayment penalty (a closure fee is not addressed) | - |
| PNC | repay the closing costs PNC paid (no reimbursable fees in Texas) | paid off and closed within 36 months |
| Regions | third-party closing costs Regions paid are charged back (not in Texas) | closed within 24 months |
| Spring EQ | no prepayment penalties on its variable-rate HELOC | - |
| TD Bank | 2% of the balance, up to $450; waived if refinanced into a TD loan or the home is sold | paid off and closed within 24 months |
| Truist | you may have to repay closing costs Truist paid | closed within 36 months |
| U.S. Bank | 1% of the original line, up to $500 | paid off and closed within 30 months |
U.S. Bank, TD and PNC tie their charges to a line that is paid off and closed, so a zero balance on a line you keep open is a different case. An open line can still carry an annual fee; the CFPB suggests checking which fees apply even when you are not using it. Every lender's fee list is on our HELOC terms by lender page. Three rows above carve out Texas, where a line on a homestead follows the state's own rules; the Texas HELOC calculator lays them out.
Paying principal while the line is interest only
Not every plan allows interest-only payments. Bank of America's minimum payment repays principal and interest over the remaining term from the start, and PNC's standard payment adds 1/360th of the principal balance to each month's interest; PNC offers interest-only payments only to customers who qualify. Where interest-only is allowed, principal can still be paid: TD notes that during its interest-only years you can also repay principal.
Every dollar of principal paid early lowers the later payment. In the example, $200 a month for 3 years leaves $67,800 to repay, so the required payment when repayment starts is $567 instead of $627.
One caution: on a line that is still open, repaid principal can be borrowed again (BMO says so on its HELOC page), and any new draw undoes part of the saving. The calculator assumes no new borrowing.
If the new payment is too high
- Refinance into a fixed-rate loan. A fixed-rate home equity loan keeps the same payment for its whole term; our home equity loan calculator shows that payment for your balance.
- Lock a fixed rate or open a new line. U.S. Bank lists both, and says the fixed-rate lock has to happen before its draw period ends.
- Fold the balance into a cash-out refinance. The cash-out refinance vs. HELOC calculator compares the total cost over the years you choose.
- Ask about a loan modification. U.S. Bank names this route for customers worried about the higher payment.
These routes have costs of their own. The CFPB notes that application and other fees may apply to a new loan and that closing costs on a cash-out refinance are generally higher, and Citizens says the fixed APR on a lock will likely be higher than the variable APR at the time. Each route keeps the debt secured by your home, and the CFPB warns that falling behind on a HELOC could cost you the home. A longer term lowers the payment but adds interest, as the table above shows.
Using a HELOC to pay off your mortgage: the math
The idea, often called velocity banking, is to move part of the mortgage onto a HELOC and pay the line down fast. Each balance is charged interest at its own rate, and a loan is paid off sooner only when more money goes to it.
Moving $10,000 from a mortgage at 6% (an assumed rate) to a HELOC at 8% adds about $200 of interest a year. Clearing $200,000 in 5 years takes about $3,867 a month at 6% and $4,055 at 8%.
The speed comes from the bigger payments, which could go straight to the mortgage. A HELOC priced below the mortgage cuts interest only while that lasts, and HELOC rates are typically variable.
HELOC payoff questions people ask
What are some ways to pay off my home equity line of credit (HELOC)?
Options include paying more than the required amount each month, one-time principal payments, and clearing the balance from savings or a home sale. U.S. Bank's end-of-draw page lists extra principal payments, paying the balance in full, locking a fixed rate before the draw period ends, and replacing the line with a new HELOC or a home equity loan. Closing the line in its first years can bring an early closure fee; the agreement shows whether one applies.
How long can you pay interest only on a HELOC?
Usually for the draw period, which often lasts 10 years. TD Bank requires just interest payments for the first 10 years, and BMO's payments are interest-only for its 10-year draw period. Some plans differ: Chase allows new draws for 3 years but keeps payments interest-only for 10, followed by 20 years of amortizing payments. Not every borrower qualifies; PNC says its interest-only option is not available to most customers.
Sources: TD Bank: Home equity, BMO: HELOC, Chase: HELOC, PNC: CHELOC early disclosures
Is an interest only HELOC a good idea?
That depends on whether the larger payment that follows fits your budget. Interest-only payments keep today's cost low, but the whole balance is still owed when repayment starts. Citizens warns that the payment will increase, possibly significantly, at the end of the draw period even if the rate stays the same. On $75,000 at 8%, $500 a month becomes $627 once 20 years of repayment begin.
Source: Citizens: HELOC disclosures
How is LOC interest calculated?
Interest is the balance times the rate for the period. A monthly estimate is balance times APR divided by 12, so $75,000 at 8% comes to $500 a month. Some lenders use a daily rate instead: PNC says its APR reflects the daily periodic interest rate, so the charge moves a little with the number of days in each billing cycle. Paying down the balance lowers the next charge.
Source: PNC: CHELOC product information
How can I calculate the loan payoff in Excel?
Use PMT for the payment and NPER for the number of months. For a $75,000 balance at 8% repaid over 20 years, =PMT(8%/12, 240, -75000) returns about $627. To see how long $827 a month takes, =NPER(8%/12, -827, 75000) returns about 140 months. The calculator above runs the same math and adds the interest-only years before repayment.
Is it smart to use a HELOC to pay off your mortgage?
It lowers interest only while the HELOC rate is below the mortgage rate, because each balance is charged at its own rate. For example, moving $10,000 from a 6% mortgage to a HELOC at 8% adds about $200 of interest a year. The same extra cash paid on the mortgage itself shortens it too, with no variable rate involved. Both loans are secured by your home.
Sources: Our calculation (see the mortgage payoff math above), CFPB HELOC booklet (home as collateral)
How to pay off a mortgage in 5 years using HELOC?
By paying enough to clear the balance in 60 monthly payments; the HELOC does not shorten anything by itself. Paying off $200,000 in 5 years takes about $3,867 a month at 6% and about $4,055 at 8%. Running that money through a HELOC priced above the mortgage only adds interest, and if the payments stop, you could lose your home.
Sources: Our calculation (see the mortgage payoff math above), CFPB HELOC booklet (risk of losing the home)
What happens to HELOC when you pay off a mortgage?
Nothing changes on the HELOC: it keeps its own balance, rate and end dates. Under Regulation Z, a lender may end a line and demand the full balance early only for set reasons, such as fraud, failing to meet the repayment terms, or an action that hurts its security in the home. Paying off the mortgage is not one of them. If you sell the home, you generally must repay the HELOC in full.
Sources: 12 CFR 1026.40, CFPB HELOC booklet
Sources
- CFPB: What is a HELOC? - draw and repayment periods, payments after the draw period
- CFPB: What you should know about home equity lines of credit (booklet) - repayment period, balloon payments, selling the home
- CFPB: What fees can my lender charge if I take out a HELOC? - cancellation fee
- 12 CFR 1026.40: requirements for home equity plans (Regulation Z) - payment terms, balloon payment, termination
- Federal Reserve Bank of St. Louis (FRED): Bank Prime Loan Rate
- U.S. Bank: HELOC end of draw period - end of draw period options
- U.S. Bank: Home equity line of credit - early closure fee
- Bank of America: HELOC assumptions - term, payment rule, early closure fee
- BMO: Home equity line of credit
- Chase: Home equity line of credit
- Citizens: HELOC disclosures
- Figure: Home equity line
- Navy Federal: HELOC
- PNC: Choice Home Equity Line of Credit
- PNC: CHELOC early disclosures
- PNC: CHELOC product information
- Regions: HELOC quick guide
- Spring EQ: Variable-rate HELOC
- TD Bank: Home equity
- TD Bank: Home equity line of credit
- Truist: HELOC
More calculators
Calculators
- HELOC calculatorYour HELOC limit, the interest-only payment and the payment after the draw period ends.
- Home equity calculatorYour equity in dollars and percent, LTV and CLTV, and how much you may borrow at 80%, 85% and 90% caps.
- Home equity loan calculatorYour fixed monthly payment, total interest and estimated maximum loan, next to a HELOC on the same amount.
- Cash-out refi vs. HELOCKeep your mortgage and add a HELOC, or refinance for cash: which costs less over the years you choose.
- Compare home equity optionsHELOC, home equity loan, cash-out refi, home equity investment, 401(k) loan: what each costs for your cash and timeline.
- Home equity investmentWhat a shared-equity deal really costs: your payback, the total cost and the cost a year, next to a loan.
- HELOC requirementsWhich lenders' published HELOC rules your numbers meet: CLTV cap, credit score, line amount, state and property.
- Texas HELOC calculatorYour Texas HELOC limit under the 80% homestead rule, the payment and the Texas rules that apply.
Guides with a calculator
- Is HELOC interest deductible?When HELOC interest is tax deductible and what it saves above the standard deduction in 2025 or 2026.
- HELOC on a rental or second homeBorrowing against a rental or second home, or against your home to buy one: line, payments, rent and lenders.
- HELOC for debt consolidationPaying off credit cards with a HELOC or a personal loan: total cost, payment and payoff date.
- HELOC for home improvementYour renovation budget with a cushion, whether it fits your line, and the interest and payment as you draw.