HELOC Reset Payment Shock Calculator

See how a HELOC payment can spike when the draw period ends, understand how far it deviates from today's budget, and pinpoint the refinance rate needed to keep repayments at a manageable level.

Outstanding principal balance that will start amortising when the draw period ends.
Years allowed to repay the balance once the HELOC converts to amortising payments.
Interest-only annual percentage rate charged during the draw period (enter the current margin over SOFR or prime).
Expected annual percentage rate applied once the HELOC converts to amortising payments.
Defaults to the current interest-only payment if blank. Used to solve for a refinance rate that meets your goal.

Illustrative projections only. Work with your lender to confirm repayment terms and refinance options.

Examples

  • $120,000 balance, 15-year term, 4.25% intro, 8.75% reset, $800 target ⇒ Current $425.00 USD; amortising $1,199.34 USD; monthly increase $774.34 USD (182.20%); principal-only floor $666.67 USD; refinance break-even 2.50% to hit $800.00 USD.
  • $85,000 balance, 20-year term, 3.90% intro, 7.10% reset, target blank ⇒ Current $276.25 USD; amortising $664.12 USD; monthly increase $387.87 USD (140.40%); principal-only floor $354.17 USD; break-even message warns the target is below the floor.

FAQ

What term should I enter?

Use the number of years the lender gives you to repay the HELOC balance after the draw period ends. Many products convert to 10-, 15-, or 20-year amortising schedules, so confirm with your lender.

How do I include extra principal payments?

You can approximate by lowering the remaining term to reflect the accelerated payoff or by comparing against a separate amortisation schedule that includes the extra payments.

Why is the break-even rate message showing a floor warning?

Your target payment is below the minimum required to amortise the balance even at 0% interest. Increase the target to at least the balance divided by the remaining months so the solver can find a rate.

Does this cover interest-only reset options?

If your HELOC offers a post-reset interest-only option, leave the reset rate at the expected draw rate and interpret the payment change as zero, or enter the lender's interest-only payment in the target field to compare.

Additional Information

  • Interest-only payments multiply the balance by the introductory annual rate and divide by 12 to show the current draw-period cost.
  • Reset payments use the standard amortisation formula over the remaining term at the assumed post-reset rate.
  • The principal-only floor divides the balance by the remaining months, illustrating the minimum payment possible even at 0% interest.
  • The refinance solver expands the rate search until it matches your target payment or flags when the goal is already met or below the floor.
  • Percent change highlights how drastic the payment shock is so you can start budgeting conversations early with lenders or advisors.

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