Colorado HELOC Calculator

By SoFi Editors | Updated December 30, 2025

For those who have built up a solid ownership stake in their home, a home equity line of credit (HELOC) offers a way to get equity out of your home, allowing you to borrow money at a better interest rate than you’d find with a personal loan or credit card. Understanding how HELOCs work is the first step toward making an informed decision, and a free Colorado HELOC calculator can swiftly show you how much equity you have and what your monthly payments might be if you were to borrow against it. Take a few minutes to learn how to use this tool effectively, then try out the calculator for yourself.

  • Key Points
  • •  A HELOC is a revolving credit line, allowing borrowers to draw, repay, and re-draw funds.
  • •  This financing option is secured by the homeowner’s property, which serves as collateral for the credit line.
  • •  A HELOC typically has two distinct phases: an initial draw period followed by a repayment period.
  • •  Lenders generally allow borrowers to access up to 90% of their home equity, which is the value of their home minus any mortgage balance.
  • •  Interest rates for this type of financing are generally variable and fluctuate based on economic indicators.

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•  HELOC Balance: This term represents the total amount of money a borrower has currently withdrawn from their available credit line, or the amount a homeowner plans to borrow.

•  Current Interest Rate: A lender will compute the interest you owe on a HELOC by multiplying the rate by the HELOC balance. HELOC rates are typically variable and can change over time based on market conditions.

•  Draw Period: The draw period is the initial phase of the HELOC, during which time the homeowner can borrow up to the credit limit. In most cases, this stage lasts for a decade and borrowers may only be required to make monthly interest payments on the amount borrowed.

•  Repayment Period: This phase begins once the draw period concludes. HELOC users will stop borrowing funds and begin making regular payments that cover both the principal balance and the interest.

•  Monthly Interest Payment: This is the amount due each month during the draw period.

•  Monthly Principal and Interest Payment: During the repayment period, the principal and interest will both be included in the homeowner’s monthly payments.

•  Total Interest: The free HELOC calculator computes the total amount of interest you might pay based on your borrowed amount. Remember that because HELOC interest rates are variable, this number is only an estimate. But it’s helpful to have a sense of the total cost of borrowing.

How to Use the Colorado HELOC Calculator

When using a Colorado HELOC payment calculator, the quality of the output will depend on the accuracy of the numbers you provide. Follow these steps for the best results:

Step 1: Input Your Planned or Actual HELOC Balance

Record the amount you plan to spend with your HELOC, or enter your current balance if you already have a home equity line of credit.

Step 2: Select Your Interest Rate

The interest rate is the primary driver of your monthly carrying costs during the draw period. Enter a rate offer from a prospective lender or use an estimate based on your research.

Step 3: Choose the Length of Your Draw Period

This timeframe is important because it dictates when the transition to the more intensive repayment phase will occur. A typical draw period is five to 10 years.

Step 4: Specify Your Repayment Period

Choose a repayment period, which will typically be between 10 and 20 years. A longer period may lower your monthly payment, but will increase the total interest paid over the life of your HELOC.

Step 5: Review Your Results

Analyzing the calculator’s output allows you to see how both the short- and long-term costs of a HELOC fit into your budget. If you think a HELO might be a good fit, make sure you understand what a home equity line of credit is, exactly, before you proceed.

What Is a Home Equity Line of Credit?

A HELOC is a flexible financing option that allows homeowners to borrow against the value of their property. Unlike personal or home equity loans, which provide borrowers with funds in a single lump sum, a HELOC is a revolving credit account. In practice, using it is similar to using a credit card. However this line of credit is secured by your home, meaning interest rates tend to be lower than those found on credit cards, and borrowing limits may be higher.

HELOCs have two distinct phases: the draw period and the repayment period. The draw period typically lasts for 10 years. During this time, the homeowner has the freedom to access funds for various purposes, such as home upgrades, educational costs, or debt consolidation. Many lenders only require you to pay interest on what you have borrowed during the draw period, although you have the option to pay down the principal and then borrow again, up to the full credit limit. A HELOC interest-only calculator can show you what you might pay if you are only paying interest.

Once the draw period expires, the product enters the repayment period, which lasts for up to 20 years. At this point, you can no longer borrow and you must begin making payments that include both principal and interest to retire the balance. It’s important to be prepared for these payments, because they are usually higher than in the draw period. A HELOC repayment calculator can show you what you might need to pay based on your balance. HELOCs have variable interest rates, as well. So your payment could rise or fall periodically based on market rates.

Lenders typically require homeowners to have at least 15% equity in their home before greenlighting a HELOC. To determine your equity level, subtract your mortgage balance from your home’s estimated value. Then divide the answer by the home value to get a percentage.If approved, you may be able to borrow up to 90% of your equity. To gain approval, you’ll need a credit score of at least 640, though many lenders like to see 680 or more.

HELOCs are a great way to capitalize on the value you’ve built up in your home, but it’s important to remember that when your home is collateral, as it is in this case, you risk foreclosure if you can’t repay what you have borrowed.

Managing this type of credit line also requires a disciplined approach to budgeting and an understanding of variable interest rates. The most successful borrowers use the HELOC to their advantage by only drawing what is necessary and making principal payments during the draw period when possible. This strategy reduces the total debt that must be managed when the repayment phase begins.

Recommended: Different Types of Home Equity Loans

The equity you have in your home is not static; it fluctuates as you make your mortgage payments and your home value responds to local market conditions. When property values in a region like Colorado experience growth, the homeowner’s equity increases, even if the home loan balance changes only incrementally month to month. In Colorado over the past five years, owners have seen an average equity increase of 48% and the average owner now has more than $215,000 in equity — more than adequate to support a HELOC that would allow a renovation or debt consolidation.

This equity increase is part of a larger national trend, as shown in the graphic.

How to Use the HELOC Calculator Data to Your Advantage

Using a HELOC payment calculator to generate estimates of your monthly HELOC payment, both during the draw phase and after you reach the repayment phase, is a smart way to determine if your budget can handle a HELOC. But there are other uses for the HELOC calculator.

•  You can create “what-if” scenarios. Homeowners considering a HELOC can input different HELOC balances, interest rates, or repayment terms to see how each of these things will affect their monthly payment. This lets you see what a high or low monthly payment would be based on different interest rates. This is useful given that HELOC interest rates can shift over time.

•  You can evaluate debt consolidation strategies. If you’re carrying balances on high-interest credit cards, you can add up the monthly payment amounts on your cards and compare that to the monthly payment you would have if you used a HELOC to pay off all that you owe at once. There’s a good chance your monthly payment with a HELOC would be lower than the sum of what you’re currently paying. And it would be one payment instead of multiple payments.

•  You can avoid “payment shock”. Looking carefully at the monthly principal and interest payment during repayment will prepare you for how payments increase after the draw phase of a HELOC ends. By seeing these future figures today, a borrower can choose to limit their draws to what is truly necessary, maintaining a healthy debt-to-income ratio and avoiding so-called “payment shock.”

Tips on HELOCs

Being disciplined about making payments is key to having a happy HELOC experience. But there are other ways you can set yourself up for success:

•  Before you apply: Strive for a healthy credit score by making all your payments on time. For the lowest HELOC interest rate, it helps to have a credit score of 700 or more. Avoid closing any credit accounts (or opening new ones), but do try to pay down your credit card debt in the months leading up to a HELOC application.

•  Before you commit to a HELOC: Shop around and compare offers. Different lenders offer various terms and have different fee structures. Look at how each lender computes your interest rate as well. By comparing offers from multiple institutions using the free HELOC calculator, you can pinpoint the HELOC arrangement that works best for you.

•  After you sign a HELOC agreement: While the draw period offers the convenience of interest-only payments, homeowners should be mindful that the full balance must eventually be repaid. Try to get in the habit of making payments toward the principal whenever possible during the draw phase to reduce the financial burden you’ll face during the repayment phase. And treat the revolving credit line with the same seriousness as you do your primary mortgage.

Recommended: HELOC vs. Home Equity Loan

Alternatives to HELOCs

Every homeowner’s financial situation is different, and a HELOC may not always be the most appropriate choice. Some homeowners will be better off with a home equity loan, for example. Make sure you are aware of all your borrowing options.

Home Equity Loan

Home equity loans provide a lump-sum loan all at once. A home equity loan is a second mortgage. It typically has a fixed interest rate and fixed monthly payments, which makes it an attractive choice for those who want predictability and who have a pretty solid idea of how much money they need to borrow. Unlike with a HELOC, which has a draw period, with a home equity loan the borrower begins to repay both principal and interest immediately after receiving funds, and the borrower cannot re-borrow funds as the balance is paid down.

A home equity loan calculator can show you what your payments might be based on your amount borrowed.

Home Improvement Loan

This installment loan is useful if you have a specific residential project with a known cost — often in the form of an estimate from a contractor. Unlike a revolving credit line, all funds are usually disbursed in a single payment. As with a home equity loan, you would begin to repay the principal plus interest immediately. Because a home improvement loan is not secured by your home, its interest rate could be higher and maximum loan amount lower than you’ll find with a HELOC or home equity loan.

Personal Line of Credit

A personal line of credit offers revolving access to funds similar to a HELOC but is another unsecured loan option. This means your property is not used as collateral. While this protects the home from foreclosure in the event of a default, the interest rates are generally higher because the lender is taking on more risk without a physical asset as security.

Cash-Out Refinance

This special mortgage refinance strategy involves replacing the primary mortgage with a new, larger mortgage. The homeowner receives the difference between the two as a lump-sum payment. This approach can be preferable to adding a second mortgage if current interest rates are significantly lower than the rate on the primary mortgage.

As you consider a cash-out refinance vs. home equity line of credit or home equity loan, a key difference is that the refinance consolidates all home debt into a single payment.

The Takeaway

The Colorado HELOC calculator is a helpful resource for any homeowner looking to borrow money based on their home equity. Having a clear and objective estimate of your projected payments, both during the draw and repayment phases, can make deciding on a HELOC easier. Use the calculator to compare costs when you obtain interest rates and HELOC terms from lenders and you’ll be taking an important step toward borrowing responsibly.

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 benefit of having a variable interest rate?

The primary benefit of a variable rate is that it often starts lower than the rates found on fixed installment products. This can lead to lower initial monthly costs, such as during the draw period of a home equity line of credit. If market interest rates decrease, your monthly payment and total interest costs could even go down when the rate adjusts. However, this flexibility comes with the risk that payments may increase if market rates rise in the future.

Are there closing costs or fees for a HELOC?

Yes, these financing options often include closing costs and fees, which can range from 2% to 5% of the credit limit. Fees may include application charges, home appraisal costs, and annual maintenance fees. Some lenders may offer to waive these costs if you keep the credit line open for a certain period, but it is important to compare different offers to understand the total cost over the life of the product.

What is the minimum credit score I need to qualify for a HELOC?

While requirements vary by lender, most institutions look for a credit score of at least 640, with many lenders preferring 680. Higher scores, typically 700 or above, generally help you qualify for the most competitive interest rates. Lenders also evaluate your debt-to-income ratio and the amount of equity in your home to determine your overall eligibility and ensure that the financing is a safe option for you.

Is the interest on a HELOC tax-deductible?

Interest paid on this credit line may be tax-deductible. You’ll need to itemize on your return in order to capture this deduction. It’s a good idea to consult with a professional tax advisor to understand the current rules and how they apply to your situation.

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