Iowa HELOC Calculator

By SoFi Editors | Updated January 23, 2026

Iowa homeowners have, like many homeowners nationwide, seen their home equity increase significantly over the past five years. Now perhaps you’re among the Iowans wondering how to get equity out of your home. That’s where this free HELOC calculator comes into play. You can use the calculator to quickly determine the cost of borrowing with a home equity line of credit (HELOC). You’ll also see the total cost of borrowing over the HELOCs two phases, draw and repayment. Follow this guide to use the calculator effectively and you’ll learn everything you need to know to guide your HELOC decisionmaking.

  • Key Points
  • •   A home equity line of credit provides a revolving credit limit that functions similarly to a credit card, allowing for repeated borrowing and repayment.
  • •   The credit line is secured by the equity in the home, which is the difference between the current market value and the outstanding mortgage balance.
  • •   Borrowers typically enter an initial draw period, often lasting 10 years, during which they can access funds as needed.
  • •   During the draw period, many lenders offer the option to make interest-only payments, which can keep initial monthly costs lower.
  • •   Once the draw period concludes, the credit line enters a repayment phase, typically spanning twenty years, where further borrowing is prohibited.


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 represents the total amount of funds you plan to withdraw from your line of credit. If you already have a HELOC, use the amount that you have borrowed thus far (or the maximum amount you plan to borrow).

•   Current Interest Rate: Different lenders have different interest rates for customers, based on the customer’s equity level and creditworthiness. Input the rate you’ve been offered, or an advertised rate you have seen. If you already have a HELOC, input your current rate.

•   Draw Period: The draw period is the initial phase of the HELOC, usually lasting 10 years. During this time the homeowner can utilize funds and even pay down the balance and reuse the credit line. Many lenders only require interest payments during this phase.

•   Repayment Period: The repayment period is the second phase of the credit line, typically lasting up to 20 years. During this phase, borrowing stops and the balance must be repaid, with interest. HELOCs have variable interest rates, so the exact amount you pay each month will vary month to month.

•   Monthly Interest Payment: A monthly interest payment is the calculated amount due each month to cover only the cost of using the credit line during the draw period. This payment does not reduce the principal balance.

•   Monthly Principal and Interest Payment: This is the total amount due monthly once the repayment phase begins. These payments are typically much higher than interest-only payments.

•   Total Interest: Total interest is the cumulative cost of using the credit over the lifespan of the HELOC, from the first withdrawal to the final payment. The calculator gives an estimate, but as both your balance and interest rates may vary over the course of the HELOC, you can expect your real-world results to vary.

How to Use the Iowa HELOC Calculator

The calculator is easy to use if you follow these steps. Each variable you adjust in the tool provides a different perspective on your future cash flow and debt obligations.

Step 1: Enter Your Planned or Actual HELOC Balance

Type in the balance you intend to carry on the credit line (or your current balance if you are already using a HELOC). By adjusting this number up and down in the calculator, you can see how different spending levels impact your immediate budget and your long-term debt profile.

Step 2: Estimate Your Interest Rate

Because most HELOCs feature variable rates, the number you select here is likely to change with some regularity during your HELOC experience. But you can input a current rate you’ve seen or been offered by a lender to get an estimate of the cost of borrowing.

Step 3: Choose the Length of the Draw Period

The draw period duration, commonly 10 years, is when you can borrow from the credit line. You can choose a shorter or longer duration.

Step 4: Select Your Repayment Period

The repayment period is when you’ll start repaying what you owe with interest. When you choose the repayment term in the calculator, remember that longer terms usually have smaller monthly payments. A shorter term will cost you less in interest over the long haul, but the monthly payment amount will be greater.

Step 5: Review Your Results

The HELOC payment calculator will show you the potential monthly payments during both the draw and repayment periods, as well as the total interest you might pay over the life of the line of credit. Review this now so you can build a repayment roadmap that starts before the draw period ends, ensuring you are never surprised by a sudden jump in your monthly bill.

Recommended: Different Types of Home Equity Loans

What Is a Home Equity Line of Credit?

If you’ve played around with the calculator and think you might be interested in borrowing with a HELOC, it’s important to make sure you understand what a home equity line of credit is and how it works. A HELOC provides a revolving line of credit secured by the homeowner’s equity. (As noted above, your equity is your home’s appraised value minus whatever you still owe on your home loan.) Many lenders will allow you to borrow up to 90% of your equity.

A HELOC is often described as having a “credit card-like” nature because of its inherent flexibility; once approved for a specific limit, the homeowner can withdraw funds, repay them, and withdraw them again as needed. This revolving structure distinguishes it from other forms of equity-based borrowing. Because it is a form of secured credit, using your home as collateral, it typically offers interest rates that are much lower than those of unsecured options like personal lines of credit or traditional credit cards. Of course securing a HELOC with your home also means that if you fall behind on payments, you risk foreclosure.

A HELOC has two distinct phases. The first is the draw period, which as we’ve noted above typically spans ten years. During this decade, the homeowner has the freedom to access their available credit as needed and many lenders only require the homeowner to pay interest on what they have borrowed. A HELOC interest-only calculator can show you what those payments would be, although you can also see them in the free HELOC calculator.

Following the draw period is the repayment period, which lasts up to 20 years. At this point,the homeowner can no longer withdraw funds, and the outstanding balance must be repaid through regular monthly payments that include both principal and interest. This transition is a major milestone, as the monthly HELOC obligation often increases significantly at this point. You can see that in a HELOC repayment calculator.

Iowa homeowners have seen their equity increase by 105%, on average, over the past five years. The average Iowa owner now has more than $69,000 in equity. And in major cities, such as Des Moines, where greater home values are common, equity can be even more substantial. The graphic shows how this Iowa increase is part of a larger trend, and indeed equity has increased in most U.S. states in recent years. Higher home prices have made it difficult for new homebuyers to enter the market, but for current owners who wish to use a HELOC to make home improvements or pay down other debts, rising home prices are good news.

How to Use the HELOC Calculator Data to Your Advantage

The free HELOC payment calculator can help you decide whether or not a HELOC is a good idea, but it can be useful in other ways. Check out these ideas:

•  Plan for big projects: Use estimated draw and repayment payment amounts revealed by the calculator to see how a renovation or large purchase fits into your monthly budget before committing. If you’re looking at a kitchen renovation bid of, say, $60,000, you can run that number as well as, say, $50,000 to see how cutting $10,000 from your renovation budget would affect your monthly bills.

•  Compare debt-consolidation options: Weigh HELOC payments and total interest against existing credit card or loan balances to see if paying off your credit cards or personal loans with a HELOC will actually save money.

•  Guide lender discussions: Knowing your estimated borrowing limit and payments helps you approach lenders with confidence and realistic expectations.

•  See the long-term cost: Reviewing total interest over the life of the HELOC helps you judge whether an expense is worth the long-term financial impact.

Tips on HELOCs

Managing a revolving line of credit requires a disciplined approach. Because the funds are so accessible, it can be tempting to treat the credit line as a secondary bank account for daily expenses. However, it’s probably a better idea to clearly define what expenses are suitable for your HELOC before you start borrowing. Otherwise your monthly budget could take quite a hit come the repayment phase.

Financial discipline will help you get a HELOC in the first place. Lenders look for a credit score of 640 or better in order to approve a homeowner for the credit line. Some even draw the line at 680. But an even healthier credit score, 700 or better, will get you a better starting interest rate on your HELOC.

Another key recommendation is to shop around and compare options from multiple lenders to find competitive rates and low fees. Not all revolving credit products are created equal; lenders may offer different margins on the variable rate, varying lengths for draw and repayment periods, and a wide range of fees. Some lenders in Iowa may waive closing costs entirely if the line remains open for a certain number of years, while others might charge annual maintenance or inactivity fees. By comparing these details across lenders, a homeowner can save thousands of dollars over the life of the credit agreement. Pay close attention to the “lifetime cap” on the interest rate, as this represents the absolute maximum you could be charged if market rates skyrocket.

Recommended: HELOC vs. Home Equity Loan

Alternatives to HELOCs

While a HELOC is a powerful tool for many homeowners, it is only one of several options available if you’re looking to access cash. Before you dive into a HELOC, consider all your options. And make sure you understand what is a home equity loan and how it differs from a HELOC.

Choosing the right mechanism depends heavily on your specific financial goals, your comfort with variable interest rates, and the nature of the project you are funding. Some situations require a lump sum of cash with a fixed repayment schedule, while others benefit from the revolving nature of a credit line. Evaluating these alternatives side-by-side with your calculator results is the best way to ensure you select the most efficient financial tool.

Home Equity Loan

A home equity loan is often confused with a HELOC. Both use your home as collateral, but a home equity loan provides the entire amount you are borrowing as a lump-sum loan at the time of closing. You’ll immediately begin to repay the loan with interest. Most home equity loans feature a fixed interest rate. As with a HELOC, you’ll choose your repayment term, but with a home equity loan your monthly payments will be predictable from day one. This makes it a strong choice for homeowners who have a specific, one-time expense and prefer the stability of a fixed installment plan over the variable nature of a revolving credit line. A home equity loan calculator can help you see what your monthly payments might be based on how much you plan to borrow.

Home Improvement Loan

A home improvement loan is often unsecured, meaning it does not use your home as collateral. Like a home equity loan, a home improvement loan disburses a lump sum upfront. Because they are unsecured, they may carry higher interest rates than equity-based options, but they offer the advantage of not putting your home at risk if you default. They are best suited for smaller, one-time projects where the homeowner wants a quick approval process without a home appraisal or the extensive documentation required for a HELOC or home equity loan.

Personal Line of Credit

A personal line of credit is a revolving credit account that allows you to borrow as needed up to a set limit, similar to a HELOC. The primary difference is that it is typically unsecured. This means the interest rate will likely be significantly higher because the lender is taking on more risk without an asset to back the debt. The amount you can borrow with a personal line of credit is usually smaller than the credit line you would get from a HELOC. However, it provides the same flexibility for ongoing expenses and it doesn’t require you to use your property as collateral. This is often an attractive option for those with high credit scores who need a flexible safety net but do not wish to link their home to the debt or who lack sufficient home equity.

Cash-Out Refinance

A cash-out mortgage refinance involves replacing your existing primary mortgage with an entirely new mortgage for a higher amount than you currently owe. The difference between the two mortgages is paid to you in cash. This is not a second mortgage but a brand new first mortgage. It can be a wise move if current mortgage rates are lower than your existing rate, as it allows you to access equity while potentially improving the terms of your primary home debt. However, it involves significant closing costs — often 2% to 5% of the total loan amount.

The Takeaway

Smart borrowing based on your home equity can give you a great deal of financial latitude. Used responsibly, a HELOC can help you pay down lingering debts or finally accomplish home repairs you’ve been putting off, for example. And using a HELOC payment calculator can help you understand the costs involved in borrowing and aid you in deciding on a lending partner or a repayment term before you enter into a HELOC agreement. Equity is a powerful resource. A calculator will help you treat it with the respect it deserves and get the most from your HELOC at the lowest cost.

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?

A variable interest rate often starts lower than the fixed rates offered on other types of debt. This can lead to lower initial monthly payment amounts during the draw period. A variable rate can also be a good decision at a time when rates are forecast to decline, as it will prevent you from getting stuck with a high rate when rates in the market decrease. Of course, if interest rates rise, a variable rate will rise as well.

Are there closing costs or fees for a HELOC?

There can be various costs involved in setting up and maintaining a revolving line of credit. These may include an application fee, a home appraisal fee, and an annual membership or maintenance fee. However, some lenders may waive closing costs entirely if you keep the credit line open for a specified period, such as three years. It is important to review the agreement for all fees and penalties before signing.

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

While requirements vary by lender, most prefer a credit score of at least 640 or 680 for approval. Lenders also evaluate your debt-to-income (DTI) ratio, which is your monthly debts divided by your gross monthly income. Many lenders look for a DTI ratio below 45%, though some may allow up to 50%.

Is the interest on a HELOC tax deductible?

Interest paid on a revolving line of credit may be tax deductible, though you would need to itemize your deductions on your tax return in order to capture this benefit. Consult a professional tax advisor to understand current tax rules.

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