Indiana HELOC Calculator

By SoFi Editors | Updated January 29, 2026

An Indiana HELOC calculator helps homeowners estimate how much they may be able to borrow against their home equity and what their monthly payments could look like over time. By adjusting factors like interest rate, loan term, and draw amount, you can better understand the potential costs and risks before applying.


  • Key Points
  • •  A home equity line of credit provides a revolving credit limit based on a portion of the value of a property.
  • •  The financing is split into two distinct phases known as the draw period and the repayment period.
  • •  During the draw period, which often lasts 10 years, borrowers can access funds as needed and often make interest-only payments.
  • •  The interest rate on a HELOC is usually variable, meaning it can rise or fall based on market indicators.
  • •  An Indiana HELOC calculator predicts monthly payments during the draw period and repayment period, allowing you to assess your budget prior to speaking with a lender.



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 represents the current amount of credit being utilized from the total available line. It fluctuates as the homeowner draws more funds or makes payments toward the principal balance.

•   Current Interest Rate: The interest rate is the percentage charged on the borrowed amount and serves as a primary factor in monthly cost calculations. Because these rates are often variable, they can change over time based on the prime rate.

•   Draw Period: This is the initial phase, often spanning 10 years, where the homeowner has active access to the funds. During this time, the required monthly payments are typically at their lowest levels.

•   Repayment Period: The repayment period is the second phase where the line is closed to new withdrawals and the remaining balance is paid back. This phase usually lasts between 10 and 20 years and includes both principal and interest.

•   Monthly Interest Payment: This is the minimum amount due during the draw phase, covering only the cost of borrowing the funds. It does not reduce the actual balance owed on the credit line.

•   Monthly Principal and Interest Payment: This combined payment is required during the repayment phase to settle the balance. It ensures that the borrowed amount is fully paid off by the end of the term.

How to Use the Indiana HELOC Calculator

The Indiana HELOC calculator will estimate your monthly payments during the draw period and repayment period. Here’s how to use it:

Step 1: Enter the Amount You Plan to Borrow

First, enter the amount you plan to borrow for the line of credit.

Step 2: Estimate Your Interest Rate

Individuals should input the current market rate to see how it impacts the cost of borrowing. This rate determines the interest charges applied to the outstanding balance. Using the calculator to test higher rates can help you prepare for potential market shifts that might increase your costs in the future.

Step 3: Choose the Length of Your Draw Period

The user must select the time frame they are allowed to access funds, which is typically based on their specific agreement with a lender. This is often a 10-year window.

Step 4: Specify Your Repayment Period

This step requires inputting the remaining years required to pay back the funds after the draw period ends. It defines the schedule for principal and interest payments.

Step 5: Review Your Results

Homeowners are encouraged to analyze the projected payments to determine if the financing remains manageable within their budget. Reviewing the monthly payments during both periods helps in assessing the long-term impact on financial health.

What Is a Home Equity Line of Credit?

In Indiana, a home equity line of credit serves as a flexible financial resource that functions similarly to a credit card. It is a revolving line of credit that allows homeowners to borrow against the equity they have built in their property over time. Unlike a standard loan that provides a lump sum, this financing allows people to draw only what they need, when they need it.

HELOCs have two distinct phases: a draw period and a repayment period.

Draw period: During this initial phase, which often lasts five to 10 years, you can borrow, repay, and borrow again up to your credit limit. Payments are usually interest-only, keeping monthly costs lower while funds remain flexible. A HELOC interest-only calculator can show you what payments would be based on your balance.

Repayment period: Once the draw period ends, borrowing closes and you begin repaying both principal and interest over a set term, commonly 10 to 20 years. Monthly payments typically increase as the balance is fully amortized. A HELOC repayment calculator can show you what those payments might be.

Because the home serves as collateral, the interest rates are often lower than those found on unsecured credit cards or personal lines of credit. This makes it a popular choice for Hoosiers looking to fund significant projects while keeping interest expenses under control. It is also important to note that most of these lines of credit feature a variable interest rate. This means the cost of borrowing can change based on economic shifts and the prime rate.

Recommended: What Is a Home Equity Line of Credit?

Indiana’s real estate market has seen significant shifts that directly impact the availability of home equity for local residents. Equity is the difference between the current market value of a home and the remaining balance on any existing home loan. From 2020 to 2025, average home equity increased 142% nationwide, accounting for about $11.5 trillion in value. In Indiana, home equity increased 123%, with the average homeowner holding $95,652 in equity as of 2025.

For many Indiana residents, this equity growth serves as a hedge against other rising costs. By using a line of credit secured by their property, they may access funds at a lower cost than other forms of debt. Here’s a closer look at how equity has risen nationwide between 2020 and 2025.

How to Use the HELOC Calculator Data to Your Advantage

HELOC calculator results show how estimated monthly payments fit into your household budget before you borrow. Reviewing payments during both the draw and repayment periods helps you decide whether expenses like renovations or debt consolidation are manageable without straining your cash flow. Here’s how to use the data to your advantage:

Scenario planning: Because HELOCs typically have variable interest rates, the calculator is ideal for running “what-if” scenarios. Testing higher rates or different balances reveals how market changes could impact your payments, helping you borrow more conservatively and time withdrawals wisely.

Borrowing limit evaluation: Seeing how different credit limits affect payments helps you avoid overborrowing simply because funds are available. Using the calculator to model smaller balances can keep your loan aligned with your actual needs and reduce financial risk.

Lender comparison: Running the same numbers with different interest rates, terms, and fees allows you to compare offers side by side. This makes it easier to identify the most cost-effective HELOC and approach lenders with clearer expectations and stronger negotiating confidence.

Tips on HELOCs

Managing a line of credit responsibly is necessary for long-term financial stability in Indiana. Because the property is at risk if payments are missed, homeowners must approach this financing with a high level of discipline. Below are tips on how to make the most of your HELOC.

•  Shop around. Compare options from multiple lenders to find your best offer. Look for a competitive interest rate and low fees, as well as a repayment term and monthly payments that fit your budget.

•  Make principal payments right away. Consider making principal payments during the draw period to reduce the total debt before the repayment phase begins.

•  Monitor your credit score regularly. A high score can often lead to better terms and higher credit limits.

•  Keep a close eye on interest rate trends. Most HELOCs come with variable rates that could impact your monthly budget during economic shifts.

•  Have a purpose for the funds. Avoid using the credit line for small, everyday expenses that can quickly add up and become difficult to manage without a clear plan.

While these tips provide a guide for managing a credit line, it is also useful to consider other ways to access funds.

Recommended: HELOC vs. Home Equity Loan

Alternatives to HELOCs

While a line of credit offers flexibility, it may not be the best fit for every Indiana homeowner’s goals. Contrasting the HELOC with other financing methods helps individuals determine which structure aligns with their needs, risk tolerance, and repayment preferences.

Home Equity Loan

A home equity loan is a lump-sum “second mortgage” that provides the entire amount at once with a fixed interest rate. Unlike the revolving nature of a line of credit, it features predictable monthly payments from the start and is ideal for those with a defined one-time expense. It offers stability for those who want to avoid the fluctuations of variable interest rates. A home equity loan calculator can help you compare the cost of this product to that of a HELOC.

Recommended: What Is a Home Equity Loan?

Home Improvement Loan

A home improvement loan is a personal financing option often used for specific property upgrades. It is typically unsecured, meaning it does not require the home as collateral, though this often results in a higher interest rate than property-secured options. This may be a preferred route for those who lack sufficient equity or do not wish to place a lien on their residence.

Personal Line of Credit

A personal line of credit functions similarly to a HELOC as a revolving credit account but does not require the home as collateral. It is generally based on the borrower’s creditworthiness and provides a flexible way to access funds for various expenses. However, because it is unsecured, the credit limits are usually lower and the rates are higher than those of home-secured financing.

Cash-Out Refinance

A cash-out mortgage refinance involves replacing the primary mortgage with a new, larger one and receiving the difference in cash. This allows the homeowner to keep a single monthly payment while potentially securing a different interest rate or loan term.

When comparing a cash-out refinance vs. home equity line of credit, a cash-out refinance leaves you with one payment. A home equity line of credit, on the other hand, gives you a second payment on top of your original mortgage payment.

The Takeaway

Using our Indiana HELOC calculator is a strategic way to navigate the Indiana housing market and make informed decisions about property equity. By understanding the difference between the draw and repayment periods, homeowners can avoid the “payment shock” that often occurs when a credit line transitions to the final phase. This can help homeowners decide if they can afford the monthly payments that come with a HELOC before speaking with a lender.

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.


View your rate

FAQ

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

A HELOC is a revolving line of credit that allows for multiple withdrawals and typically has a variable interest rate. In contrast, a home equity loan provides a lump sum of cash upfront with a fixed interest rate and set monthly payments. While both use the home as collateral, the HELOC offers more flexibility in how and when funds are used during the 10-year draw period.

Is a HELOC interest rate fixed or variable?

Most lines of credit feature a variable interest rate that can fluctuate over time based on a benchmark like the prime rate. This means monthly payments can increase or decrease as market conditions change.

Are there closing costs or fees for a HELOC?

Yes, many lines of credit involve closing costs, which typically range from 2% to 5% of the credit limit. Some lenders may waive these costs if the homeowner meets certain conditions, such as keeping the line open for at least three years. Additionally, borrowers should watch for other potential costs like annual maintenance fees, inactivity fees, or early closure penalties outlined in the agreement.

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

Lenders generally look for a credit score of at least 640, though many prefer a score of 680 or higher for the most favorable terms. While it is possible to qualify with a lower score, this often results in a higher interest rate. Lenders also consider factors like debt-to-income ratio and employment stability alongside the credit score during the review process.

Learn more about home equity line of credits: