Arizona HELOC Calculator

By SoFi Editors | Updated January 22, 2026

A home equity line of credit (HELOC) calculator is a strategic financial planning tool for homeowners. It provides a way to explore how HELOCs work and estimate monthly payments without submitting a formal application. By using a HELOC calculator, homeowners can model different scenarios to understand the structure of the payments and how they might fit into a budget.

Keep reading to learn more on the core features of a HELOC, how to use calculator results for effective planning, and alternative options to explore.

  • Key Points
  • •   A HELOC is a revolving line of credit, similar in function to a credit card.
  • •   The financing is secured by the equity in the borrower’s home.
  • •   A HELOC is structured with two distinct phases: a draw period and a repayment period.
  • •   Interest is only charged on the amount of money that has been withdrawn.
  • •   A HELOC calculator can help you estimate monthly payments during both the draw period and repayment period.

This calculator is for informational purposes only. The outputs are estimates based solely on information you input. Calculations are not an offer to make a loan or an approval. All SoFi loans are subject to eligibility restrictions and limitations not reflected in this calculator, including a loan applicant’s credit, income, property. SoFi products, terms, and conditions are subject to change without notice. Learn more at SoFi.com/eligibility-criteria.

Calculator Definitions

•   HELOC Balance: The HELOC balance is the total amount of money that has been withdrawn from the available line of credit. This is the principal balance on which interest charges are calculated.

•   Current Interest Rate: The current interest rate is the rate applied to the outstanding balance. For most HELOCs, this rate is variable, which means it can change over time in response to broader economic conditions.

•   Draw Period: The draw period is the designated time frame during which a homeowner can access funds from the line of credit as needed. This period typically lasts for five to 10 years.

•   Repayment Period: The repayment period is the phase that immediately follows the draw period. During this time, funds can no longer be withdrawn, and the borrower makes regular payments covering both principal and interest.

•   Monthly Interest Payment: A monthly interest payment is a type of payment often made during the draw period. This payment covers only the interest that has accrued on the withdrawn balance.

•   Monthly Principal and Interest Payment: A monthly principal and interest payment is the standard payment made during the repayment period. This payment is applied to both the outstanding principal balance and the interest that has accrued.

How to Use the Arizona HELOC Calculator

The following steps show how to use the Arizona HELOC calculator to generate an estimate, helping to demystify how different variables affect the outcome.

Step 1: Enter the Amount You Plan to Borrow

This field represents the HELOC balance that a user wishes to model. Entering a hypothetical borrowing amount allows homeowners to project how different balances would impact their potential monthly payments.

Step 2: Estimate Your Interest Rate

This input shows how the interest rate affects monthly payments. Since most HELOC rates are variable, this feature is useful for understanding how payments could change if rates were to rise or fall.

Step 3: Choose the Length of Your Draw Period

The draw period is the window during which funds can be accessed. Users should select a term length, which typically ranges from five to 10 years, to model this phase of the financing.

Step 4: Specify Your Repayment Period

The repayment period, which follows the draw period, is when the outstanding balance is paid down. This term usually lasts between 10 and 20 years.

Step 5: Review Your Results

The calculator will provide outputs such as estimated monthly payments for the draw period and the repayment period. It is important to remember that these figures are estimates designed for personal budgeting and educational exploration.

Recommended: How to Get Equity Out of Your Home

What Is a Home Equity Line of Credit?

A home equity line of credit (HELOC) is a revolving line of credit that is secured by the borrower’s home. It operates much like a credit card, providing access to a set amount of funds that can be drawn from, repaid, and drawn from again.

This financial product is structured into two distinct phases:

• \  The draw period: This is the initial phase, typically lasting five to 10 years, during which the homeowner can withdraw funds up to the credit limit. During this time, payments may be interest-only, which can result in lower monthly costs. A HELOC interest-only calculator can show you what payments would be based on your balance.

• \  The repayment period: Once the draw period ends, the repayment period begins. This phase usually lasts from 10 to 20 years. No additional funds can be withdrawn, and payments must cover both the principal balance and the accrued interest. This transition often leads to a significant increase in the monthly payment amount. A HELOC repayment calculator can show you what those payments might be.

The line of credit is secured by the homeowner’s equity, which is the home’s current market value minus the outstanding balance on the primary mortgage. This equity serves as the collateral for the financial institution. Most HELOCs come with a variable interest rate, meaning the rate can fluctuate over the life of the financing based on market conditions, though some lenders may offer a fixed-rate option.

Recommended: What Is a Home Equity Line of Credit?

Home equity is the difference between your home’s current market value and the outstanding balance on your home loan and any other loans you might have where your home is used as collateral.

Arizona has experienced dramatic shifts in home equity over the past several years, driven by rapid home price appreciation and strong demand. From 2020 to 2025, average home equity increased 142% nationwide, accounting for about $11.5 trillion in value (see chart below). While Arizona’s growth during that same period was not quite as high, it still reflects how quickly property values rose across many parts of the state.

According to the data, home equity in Arizona increased a reported 106% between 2020 and 2025, with the average homeowner holding approximately $161,532 in equity as of 2025. This surge has given many Arizona homeowners greater borrowing power and financial flexibility, making tools like HELOCs and home equity loans more relevant for funding renovations, consolidating debt, or covering major expenses.

Recommended: Different Types of Home Equity Loans

How to Use the HELOC Calculator Data to Your Advantage

Understanding how to use a HELOC calculator can help you make smarter borrowing and budgeting decisions before tapping into your home equity. Here’s how you can use it:

Budgeting: A homeowner can use the estimated payment information for effective budgeting. The calculator illustrates the potential monthly cost during both the interest-only draw period and the full repayment period. This allows for a clear-eyed assessment of affordability and helps a borrower plan for the payment increase that occurs when the repayment period begins.

Comparing scenarios: The tool is also effective for comparing different financial scenarios. A user can model the impact of borrowing a smaller amount to see how that reduces the monthly payment. Similarly, one could input a higher interest rate to stress-test their budget against potential market fluctuations, a valuable exercise for a product with a variable rate.

The primary advantage of using an Arizona HELOC calculator is gaining a clear understanding of the potential long-term financial commitment before ever speaking with a lender. It empowers homeowners to approach the application process with realistic expectations and a solid grasp of how the product works.

Tips on HELOCs

While a home equity line of credit offers considerable flexibility, it also requires responsible management to prevent financial strain. The funds are readily accessible, but the obligations must be handled with care to avoid falling behind on payments.

Here are several practical tips for managing a HELOC:

•  Shop around for the best offer. Compare options from multiple lenders to find the most competitive terms. Look for a favorable interest rate, low fees, and a repayment structure that aligns with your financial situation.

•  Plan for the end of the draw period. The transition from interest-only payments to principal and interest payments can cause a substantial jump in the required monthly amount. Budget for this increase well in advance to ensure a smooth transition.

•  Understand all potential fees. In addition to the interest rate, be aware of other potential costs. These can include annual fees, inactivity fees for not using the credit line, or early closure penalties if the account is closed within a certain timeframe.

•  Pay more than the minimum. If possible, make payments that cover both principal and interest during the draw period, even if only interest payments are required. This reduces the total balance that will need to be paid down during the more costly repayment period.

Before settling on this option, it is always wise to review alternative financial products.

Alternatives to HELOCs

Exploring different financing options is a key part of making a sound financial decision. While a HELOC is a flexible and powerful tool, other products might be better suited for different goals or personal risk tolerances.

Home Equity Loan

A home equity loan provides a one-time lump sum of cash that is paid back in fixed monthly installments over a set period, typically five to 30 years. It is often referred to as a second mortgage.

A home equity loan calculator can help you compare the cost of this product to that of a HELOC.

Home Improvement Loan

A home improvement loan is a type of personal loan intended for funding home renovations and repairs. It typically provides a fixed amount of money at a fixed interest rate. Because it is unsecured, though, interest rates tend to be higher than for home equity loans and HELOCs.

Personal Line of Credit

A personal line of credit is a revolving credit line that is not secured by an asset like a home. It functions like a credit card or HELOC, allowing you to draw on your credit limit, repay as you go, and draw again. Because it is unsecured, it often comes with a higher interest rate than a HELOC.

Cash-Out Refinance

A cash-out mortgage refinance involves replacing an existing primary mortgage with a new, larger one. The difference between the two mortgage balances is given to the homeowner in cash.

When comparing a cash-out refinance vs. home equity line of credit, a cash-out refinance allows the homeowner to maintain a single monthly payment rather than managing two separate debts.

Recommended: HELOC vs. Home Equity Loan

The Takeaway

A HELOC calculator is an essential first step for any homeowner considering using their home equity. By using an Arizona HELOC calculator to model various scenarios, homeowners can be better prepared to manage the responsibilities that come with leveraging one of their most valuable assets.

SoFi now partners with Spring EQ to offer flexible HELOCs. Our HELOC options allow you to access up to 90% of your home’s value, or $500,000, at competitively lower rates. And the application process is quick and convenient.



Unlock your home’s value with a home equity line of credit from SoFi, brokered through Spring EQ.


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FAQ

What is the difference between a HELOC and a home equity loan?

A HELOC is a revolving line of credit with a typically variable interest rate, allowing you to draw funds as needed. A home equity loan provides a single lump sum of money at a fixed interest rate, with repayment beginning immediately.

How much can I borrow with a HELOC?

Borrowers can typically access between up to 90% of their home equity. Home equity is calculated by taking the property’s current market value and subtracting the outstanding mortgage balance.

What can I use the money for from a HELOC?

The funds are flexible and can be used for a wide variety of purposes. Common uses include home renovations, funding education costs, covering medical bills, or consolidating higher-interest debt.

Is a HELOC interest rate fixed or variable?

Most home equity lines of credit have a variable interest rate that can change over time based on market conditions. However, some financial institutions may offer a fixed-rate option.

What happens when the draw period ends?

When the draw period ends, you can no longer withdraw funds from the line of credit. The repayment period begins, during which you are required to make regular payments on both the principal and the accrued interest.

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