Draw vs repayment payment estimator
During the draw period you pay interest only on what you have borrowed. When repayment begins, the same balance converts to a fully amortized payment — often a significant jump. Enter your balance, APR, and repayment term below to see both figures side by side.
| Period | Monthly payment |
|---|---|
| Draw period (interest-only) | $333 |
| Repayment period (amortized over 240 mo) | $418 |
Payment increase at repayment: $85/mo (25%)
Illustrative estimate only — not an offer to lend. Rates are variable and your actual draw-period length depends on your lender's terms.
How it's calculated
This tool shows the payment jump when your draw period ends. During the draw period you typically pay interest only — balance times APR divided by 12. When repayment starts, the remaining balance amortizes over the repayment term, adding principal to every payment. The estimator compares both so you can see the increase, often called payment shock, before it happens. Enter your balance, APR, and repayment term to compare.
Frequently asked questions
What is HELOC payment shock?
Payment shock is the jump when your interest-only draw period ends and repayment begins. The balance starts amortizing, so principal is added to each payment. Depending on your balance and remaining term, the payment can rise sharply, which catches some borrowers off guard.
How much will my payment increase after the draw period?
It depends on your balance, rate, and repayment term. An interest-only payment of a few hundred dollars can roughly double or more once principal amortizes over a shorter repayment window. Running your own numbers in the estimator gives a clearer, illustrative picture.