Illinois HELOC Calculator
By SoFi Editors | Updated January 28, 2026
As home prices in Illinois have risen in recent years, homeowners in the state have built up substantial equity. A home equity line of credit (HELOC) allows borrowers to obtain funds for any purpose by using their home as collateral for a credit line. And a HELOC calculator can provide solid estimates of the future payment structure on this type of home equity borrowing. This guide will help you learn to use the calculator to stress-test your budget and explore HELOC scenarios. We’ll also make sure you come away understanding how this type of revolving credit line works and how to use it responsibly.
- Key Points
- • A home equity line of credit serves as a revolving source of funds, allowing you to draw capital, repay it, and draw again during a specified window.
- • Most HELOC agreements are structured with a 5-to-10-year draw period followed by a 10-to-20-year repayment phase.
- • Monthly obligations during the initial phase are frequently limited to interest-only payments, providing temporary cash flow flexibility.
- • Variable interest rates are the standard, meaning your monthly costs will fluctuate based on movements in the U.S. Prime Rate.
- • A HELOC payment calculator can help you understand how much to budget for payments at each phase of the HELOC.
Calculator Definitions
• HELOC Balance: Your HELOC balance is whatever amount you think you are likely to need to borrow using the line of credit. If you already have a HELOC, this figure is the amount you have currently withdrawn from your revolving credit line.
• Current Interest Rate: The interest rate is the percentage charged for the use of the funds. HELOCs usually have a variable rate, meaning it can change over the course of the draw and repayment periods.
• Draw Period: The draw period is the initial timeframe, often lasting 10 years, during which you can withdraw funds from your credit line. You may have the option to make interest-only payments during this window, although you could opt to pay down the balance owed as well.
• Repayment Period: Once the draw period concludes, you enter the repayment period, where further withdrawals are prohibited and the balance must be repaid, with interest. This phase can last up to 20 years.
• Monthly Interest Payment: This is the minimum amount due each month during the draw period for homeowners who select to make interest-only payments.
• Monthly Principal and Interest Payment: This is the monthly payment amount required during the repayment phase to fully satisfy the balance by the end of the term. At this point, you would be paying down the principal and paying interest.
How to Use the Illinois HELOC Calculator
With a few data points you’ll provide, the calculator translates the financial terms above into concrete monthly payment estimates. Follow these steps to use it properly:
Step 1: Enter Your Planned or Actual HELOC Balance
Type in your actual outstanding HELOC balance — rather than your total credit limit — or enter the amount of a credit line that you think you would use.
Step 2: Estimate Your Interest Rate
The interest rate dictates ongoing costs of borrowing. Type in the rate you have or a rate you have been offered by a lender (or seen advertised online). You might also experiment with inputting rates 1% or 2% higher than your current rate to see what costs would be if the HELOC’s variable rate adjusted upward. It’s a way to “stress-test” your budget.
Step 3: Choose the Length of the Draw Period
The duration of your draw period determines how long you’ll have to pay only interest before your repayment phase hits. Most lenders offer a 10-year window.
Step 4: Select Your Repayment Period
The repayment period determines how aggressively you must pay back the balance once the draw window closes. A 20-year repayment term offers lower monthly payments but typically results in higher overall interest costs. Conversely, a 10-year term increases your monthly principal and interest obligations but clears the debt faster and usually helps save on financing costs over the life of the HELOC.
Step 5: Review Your Results
Interpreting the final results requires looking beyond the payment during the draw period to the larger payment you’ll need to make room for when you are in the repayment phase. Below we’ll share some ideas for how to use the calculator’s output to make smart financial decisions.
What Is a Home Equity Line of Credit?
With the free HELOC calculator’s help, you’ve seen the estimated payments you would have with a HELOC. But before you dive in and apply for a credit line to get equity out of your home, let’s make sure you understand exactly how this borrowing method works. Your home equity is the difference between the current market value of your home and the remaining balance on your primary mortgage. When you open a HELOC, you are borrowing against that equity. That’s why obtaining a HELOC usually involves getting an appraisal of your home. It also means that if you fail to repay what you owe, you could be at risk of foreclosure.
A HELOC is a revolving credit line, much like a credit card, but with interest rates that are typically much lower because the home serves as collateral. It has two phases: During the draw phase, you can borrow against your credit line whenever you need funds, up to the credit limit. You can repay what you borrow, but many people prefer to only pay interest on the balance. (A HELOC interest-only calculator can show you what interest-only payments might be based on your balance.) This makes HELOCs an extremely flexible way to borrow. The funds can be used for any purpose. You’ll just want to make sure you have a plan to repay what you owe, with interest, when the time comes. After the draw phase comes the repayment phase. After the 10-year draw period ends you can no longer borrow. You’ll begin to make monthly payments that include both a payment against the principal and an interest payment. See what these might be like by using a HELOC payment calculator or this HELOC repayment calculator. When you sign on to a HELOC, you’ll choose a shorter (5 or 10 years) or longer (20 years) repayment phase. The shorter the repayment period, the higher the monthly payments will be, but the less interest you will pay on your debt overall. To qualify you for a HELOC, most lenders will want to see a credit score of at least 640 and often 680. You’ll also need at least 15% equity in your home. Your debt-to-income ratio, which is the sum of your monthly debt payments divided by your gross monthly income, will need to be below 50% (and many lenders prefer 45% or less).
Recommended: Different Types of Home Equity Loans
Home Equity Trends in Illinois
After diligently paying down their home loan, the average homeowner in Illinois has seen their home equity increase by more than 200% over the last five years, due not only to the payments but also to home value increase in the Illinois market. The average owner in the state is now enjoying more than $80,000 of home equity — more than enough to make borrowing with a HELOC feasible under the right conditions. Most lenders will allow HELOC borrowers a credit line that extends to up to 90% of their equity, which for the average homeowner in Illinois would be just over $72,000. Take a look at how equity levels have increased nationwide over the past five years.
Current HELOC rates by state.
Compare current home interest rates by state and find a HELOC rate that suits your financial goals.
Select a state to view current rates:
How to Use HELOC Calculator Data to Your Advantage
Using a HELOC payment calculator to generate estimates can help you determine if your budget can handle a HELOC. But there are additional uses for the free HELOC calculator.
Creating “what-if” scenarios: Homeowners who think they would like a HELOC can input different HELOC balances, interest rates, or repayment terms to see how each of these things affect their monthly payment. You can quickly 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.
Evaluating a debt-consolidation plan: If you have balances on high-interest credit cards, you can add up the monthly payment amounts on those 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 HELOC tab would be less than the sum of what you’re currently paying on the cards. And you would simplify your finances because you’d have one payment instead of several.
Avoiding “payment shock”: Looking carefully at the monthly principal and interest payment during the repayment phase will prepare you for how payments climb after the draw phase 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 what’s known as “payment shock.”
Recommended: Different Types of Home Equity Loans
Tips on HELOCs
When your home is guaranteeing a credit line, proactive management of how you use the HELOC is very important.
• Get estimates from multiple lenders: Shop around before you commit to a HELOC lender. Compare interest rates, fees, draw periods, and repayment terms. Use the HELOC calculator to see how the rates you’re being offered would affect your payments.
• Manage your HELOC responsibly: Before you borrow, you’ll sign a HELOC agreement with a lender. But you should also have an understanding with yourself (and your partner, if you share the account) on what is and isn’t a suitable use of your credit line. Your credit limit might be quite large, but use the calculator to help you set a limit on how much of the credit line you can use to ensure you can make your payments.
• Plan for repayment: The transition from the draw period (with interest-only payments) to the repayment period (with principal and interest payments) can cause a significant jump in your monthly obligation. Budget for this increase from the very beginning.
• Make principal payments: Even if your lender only requires you to make interest payments during the draw period, consider making additional payments toward the principal. This will lower the amount of interest you pay over the life of the loan and lead to a more manageable payment during the repayment period.
• Monitor interest rates: If you have a variable-rate HELOC, stay aware of market interest rate trends. Anticipating potential increases in your rate can help you adjust your budget accordingly or decide to pay down the principal to lower your payment amount.
Alternatives to HELOCs
A HELOC isn’t right for everyone, and if you’ve considered the calculator results and feel skittish about handling a HELOC or having a variable-rate interest payment, you might want to look at one of these other options. For starters, make sure you explore what is a home equity loan and how it differs from a HELOC.
Home Equity Loan
A home equity loan uses your home as collateral, like a HELOC, but that’s where the similarity ends. A home equity loan provides a one-time lump sum of cash. You start making payments on that loan immediately, and usually have a fixed interest rate — meaning the payment amount doesn’t change during the repayment term. You can see what payments might be by using a home equity loan calculator. This type of borrowing is ideal for homeowners who have a specific, one-time expense and prefer the predictability of the same monthly payment for the life of the agreement, which can be from 10 to 30 years. A home equity loan removes the uncertainty of variable rates but lacks the borrowing flexibility of a HELOC.
Recommended: What Is a Home Equity Loan?
Home Improvement Loan
This type of lump-sum loan is typically unsecured, so your home is not at risk if you can’t make your loan payments. While home improvement loans protect your property from that risk, they often carry higher interest rates and have shorter repayment terms than equity-based options. They are best suited for smaller, defined projects where you want to avoid the fees and appraisal requirements of home-equity-based borrowing.
Personal Line of Credit
A personal line of credit functions similarly to a HELOC in its revolving nature, but it is typically unsecured. Because there is no collateral, credit limits are usually much lower and interest rates can be significantly higher. This is a lower-risk, higher-cost HELOC alternative that provides cash without putting your home on the line.
Cash-Out Refinance
This special type of mortgage refinance replaces your existing primary mortgage with a completely new, larger mortgage. You take the difference in cash. This is a powerful tool if you can secure a lower interest rate for your new mortgage than you had on your original loan. However, it requires paying full closing costs — typically 2% to 5% of the new mortgage. As borrowers choose between a cash-out refinance vs. a home equity line of credit, many like the simplicity of having one monthly payment with a refi instead of two (a mortgage plus a HELOC payment).
The Takeaway
The Illinois HELOC calculator can quickly help you see the costs of borrowing with a home equity line of credit, both during the draw period and the repayment phase. By comparing lenders’ rates and running scenarios with different interest rates and repayment terms, borrowers can understand what maximum balance and repayment plan work best for them.
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.
FAQ
What is the difference between a HELOC and a home equity loan?
A HELOC provides a revolving credit line that you can draw from as needed, typically with a variable interest rate. A home equity loan provides a lump sum of cash all at once with a fixed interest rate. While both are secured by your home, the HELOC offers more flexibility for ongoing projects, while the home equity loan offers the predictability of stable monthly payments.
How much can I borrow with a HELOC?
Lenders may allow you to access up to 90% of your home equity (your home’s appraised value minus your mortgage balance). Your specific limit will also depend on your credit score, income history, and debt-to-income ratio.
What can I use the money for from a HELOC?
Funds from a secured credit line can be used for virtually anything, but they are most commonly used for home renovations, debt consolidation, or other large expenses. Using the funds for property improvements that increase your home’s value is a particularly smart choice.
Is a HELOC interest rate fixed or variable?
Most HELOCs feature a variable interest rate that fluctuates based on the prime rate. This means your monthly payments can change as economic conditions shift. Your HELOC agreement will spell out how often the rate adjusts and the maximum amount that it can change, so although variable rates can be somewhat unpredictable, there are some controls built in.
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.²SoFi Bank, N.A. NMLS #696891 (Member FDIC), offers loans directly or we may assist you in obtaining a loan from SpringEQ, a state licensed lender, NMLS #1464945.
All loan terms, fees, and rates may vary based upon your individual financial and personal circumstances and state.You should consider and discuss with your loan officer whether a Cash Out Refinance, Home Equity Loan or a Home Equity Line of Credit is appropriate. Please note that the SoFi member discount does not apply to Home Equity Loans or Lines of Credit not originated by SoFi Bank. Terms and conditions will apply. Before you apply, please note that not all products are offered in all states, and all loans are subject to eligibility restrictions and limitations, including requirements related to loan applicant’s credit, income, property, and a minimum loan amount. Lowest rates are reserved for the most creditworthy borrowers. Products, rates, benefits, terms, and conditions are subject to change without notice. Learn more at SoFi.com/eligibility-criteria. Information current as of 06/27/24.In the event SoFi serves as broker to Spring EQ for your loan, SoFi will be paid a fee. Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
SOHE-Q425-063
