Your HELOC Payment Jump Is Coming - Here Is the Math

Your HELOC payment jumps when the draw period ends. Here is what determines the new number and how to plan for it.

Rajkishor Sahu
By Rajkishor Sahu Software Engineer, Founder of Daily Calcs
· Published July 13, 2026 · Updated July 30, 2026 · 11 min read

HELOCs have two phases. During the draw period you pay interest on what you have drawn and the principal stays flat. Then repayment starts and you begin amortizing the balance. The required payment rises because it now covers principal too.

How the Payment Numbers Actually Change

During the 10-year draw period, your payment moves purely with your balance and interest rate. Carrying $40,000 at an 8% interest rate keeps your monthly bill right around $267. Once a 20-year repayment term kicks in, that same balance requires about $335 every month.

Larger balances jump even higher once amortization begins:

  • A $75,000 balance at 7.5% moves from $469 a month to $695 over a 15-year repayment schedule.
  • A $300,000 balance at 6% moves from $1,500 to $1,933 over a 25-year repayment schedule.

If your HELOC carries a variable rate, rising market rates during the draw phase will drive these numbers higher when repayment starts.

You can soften the jump by paying extra principal during the draw period or converting the balance to a fixed-rate home equity loan. Timing matters more than the amount - dollars sent early in the draw period avoid years of future interest.

The HELOC Calculator models both phases. Enter your credit limit, amount drawn, rate, draw years, and repayment years. The repayment amortization table shows the post-draw payment. Stress-test a +1% rate scenario to see what happens if rates rise.

For a fixed-rate alternative, see HELOC vs home equity loan. The HELOC vs cash-out refinance guide covers the broader equity decision.

References: CFPB - What is a HELOC? - CFPB - HELOC vs home equity loan - CFPB - HELOC brochure (PDF) - Federal Reserve - Consumer credit (G.19)

Frequently Asked Questions

What happens to my HELOC payment when the draw period ends?

It goes up. The switch from interest-only to paying down principal too means the required monthly climbs. On $40,000 at 8%, the payment moves from about $267 to about $335 over 20 years. The exact number depends on your balance, rate, and how many repayment years remain.

Can I avoid the payment jump?

Not entirely, but you can shrink it. Extra principal during the draw period reduces the balance before amortization starts. Converting to a fixed-rate home equity loan locks in a predictable payment. Refinancing into a new HELOC extends the draw period but often comes with closing costs.

Should I pay down my HELOC during the draw period?

It is usually a good move. Every dollar you send now reduces the balance that later amortizes on the repayment schedule. On $75,000 at 7.5%, paying $100 extra each month could cut thousands from future interest. Confirm your lender applies extras to principal rather than treating them as advance payments.

How is a HELOC different from a home equity loan?

A HELOC is a revolving line. You draw what you need and pay interest on just that amount, with the ability to redraw during the draw period. A home equity loan is a lump sum with fixed payments from day one. HELOCs work for variable costs like staged renovations. Home equity loans suit a known one-time expense.

Try the calculator

HELOC Calculator

Open

Try the calculator

Amortization Calculator

Open

Related guides