Mortgage · Canada
HELOC payment.
Estimate your home equity line of credit payment with interest-only or principal-plus-interest options.
A home equity line of credit is revolving credit secured by your home, and the interest-only payment is the balance multiplied by the annual rate and divided by 12. This calculator shows that payment next to a principal-plus-interest repayment so you can see what the balance costs to carry.
Source: FCAC — Borrowing against home equity · As of
Cite this page: TNAADO Tools, “HELOC Calculator”, https://tools.tnaado.ca/calculators/mortgage/heloc-calculator/
Inputs
Your HELOC payment
Fill the form and press Calculate.
How a HELOC works
A home equity line of credit lets you borrow against the equity in your home, usually up to 65% of your home's value. HELOCs are revolving credit: you can draw, repay, and redraw as needed. Most Canadian HELOCs require interest-only payments, but you can also pay down principal at any time.
Worked example: $50,000 drawn at 7.5%
Suppose you have drawn $50,000 on a home equity line of credit at 7.5%. If you pay interest only, the monthly payment is 50,000 × 7.5% ÷ 12 = $312.50, that is $3,750 a year, and the balance stays at $50,000. If you instead repay principal and interest, the same balance costs more each month but ends:
| Repayment | Monthly payment | Total interest | Balance at the end |
|---|---|---|---|
| Interest only | $312.50 | $3,750 every year | $50,000 still owed |
| Principal + interest, 10 years | $593.51 | $21,221 | $0 |
| Principal + interest, 5 years | $1,001.90 | $10,114 | $0 |
- Rates move: HELOC rates are variable. If the rate in this example rises from 7.5% to 9.5%, the interest-only payment becomes $395.83, up $83.33 a month, with nothing repaid.
- Shorter costs less overall: repaying over 5 years instead of 10 raises the payment by $408.39 a month and saves $11,107 of interest.
Next steps: check how much equity you can tap with the available home equity calculator, compare a fixed-rate option in the home equity loan calculator, or weigh both against the home equity loan vs HELOC calculator.
How this is calculated
- Interest only: payment = balance × annual rate ÷ 12.
- Principal + interest: payment = B × i(1 + i)n ÷ ((1 + i)n − 1), with i = annual rate ÷ 12 and n = years × 12, then total paid = payment × n.
The monthly rate is a simple annual rate divided by 12, the usual approach for a line of credit; real HELOCs charge interest on the daily balance, so a lender’s statement will differ by cents or a few dollars. The Financial Consumer Agency of Canada says a HELOC works much like a regular line of credit, lets you borrow up to 65% of your home’s value, and is usually variable-rate; total borrowing against home equity, including your mortgage, is usually capped at 80% of the home’s value (FCAC, Borrowing against home equity, checked 1 October 2026). This calculator takes your balance and rate as given and does not check your limit.
General information, not financial advice. Your home is the security for a HELOC, so missed payments can put it at risk.
TNAADO Inc. · Toronto
A HELOC is revolving credit secured by your house
A home equity line of credit lets you borrow, repay and re-borrow up to a limit set against your equity. A standalone HELOC is generally capped at 65% of the home’s value; combined with a mortgage, total secured lending can reach 80%. The rate is variable and moves with the lender’s prime rate, and the minimum payment is usually interest only, which is what makes it feel cheap and what makes the balance sit there for years.
The mistake people make. Treating an interest-only minimum as a repayment plan. Paying only the interest never reduces the principal, and because the credit is secured by the home the consequence of trouble is not a collection call, it is the house. The second error is assuming the limit is guaranteed: a lender can generally reduce or freeze a HELOC, and typically does so exactly when property values fall.
Frequently asked questions
How much can I borrow with a HELOC in Canada?
The Financial Consumer Agency of Canada says you may borrow up to 65% of your home’s value on a HELOC, and that total borrowing against your home, including your mortgage, is usually limited to 80% of its value. On a $250,000 home with a $150,000 mortgage, the FCAC example leaves $50,000 of room under the 80% cap. Your lender also sets its own limit.
What is the difference between an interest-only HELOC payment and a principal-plus-interest payment?
Interest-only pays just the interest, so the balance never falls: on $50,000 at 7.5% it is $312.50 a month indefinitely. Principal plus interest pays the line down on a schedule, $593.51 a month over ten years on the same balance.
Is a HELOC rate fixed or variable?
A HELOC rate is usually variable, so it rises and falls with market interest rates and your payment changes with it. The FCAC lists the HELOC rate as variable, in contrast to a home equity loan that can be fixed or variable.
What fees come with a HELOC?
The FCAC lists the setup costs of borrowing against home equity as typically including an appraisal, a title search, title insurance and legal fees. Ask the lender which of these it pays and whether any annual fee applies.
What happens if I cannot make the payments?
The home secures the line, so a lender can enforce its security if you default. If you expect to miss a payment, contact your lender early to ask what options it offers.
Disclaimer
Estimates for educational purposes only. Actual HELOC rates and payment terms vary by lender.