Kentucky HELOC Calculator

By SoFi Editors | Updated January 29, 2026

A HELOC calculator can be an especially useful tool as you think about how to best convert the equity you’ve built up in your home into cash to use for renovations, debt consolidation, or other important financial goals. A home equity line of credit (HELOC) is one especially flexible way to borrow against your equity.

But before taking on a HELOC, it’s a good idea to use the calculator to see what your monthly payments would be and to look closely at how your repayment obligations would play out. This guide will help you make maximum use of the calculator and show how HELOCs work so you can be smart about borrowing.


  • Key Points
  • •  A HELOC provides the flexibility to withdraw, repay, and withdraw funds again during a timeframe known as the draw period.
  • •  The borrowing limit of a HELOC can be up to 90% of equity.
  • •  Because HELOCs are secured by property, they generally offer lower interest rates than credit cards or personal lines of credit.
  • •  Fluctuations in the broader economy directly influence the cost of borrowing with a HELOC, as the interest rates are frequently variable and tied to a benchmark such as the prime rate.
  • •  Using the home as collateral means that the property is at risk if the homeowner fails to satisfy the repayment terms agreed upon at the opening of the credit line.



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: Your HELOC balance for this calculator is the total amount you think you would like to use from a line of credit, or the amount you have already used, if you have a HELOC already.

•   Current Interest Rate: The current interest rate is the percentage charged by the lender for the use of funds.

•   Draw Period: The draw period is the HELOC’s first phase, often lasting five to 10 years. During this time, a homeowner has access to their credit line and can draw from it as needed. Lenders often allow borrowers to make interest-only payments during this phase.

•   Repayment Period: The repayment period is the second part of the credit line’s lifecycle. It begins once the window for withdrawing funds has closed. During repayment, the homeowner must repay the borrowed principal along with interest over a set number of years that will be decided at the outset of the HELOC.

•   Monthly Interest Payment: A monthly interest payment is the mandatory payment during the draw phase.

•   Monthly Principal and Interest Payment: The monthly principal and interest payment is the combined amount required during the repayment phase to fully satisfy the debt. It’s important to understand at the outset of a HELOC that payment amounts will likely be noticeably larger during the repayment phase.

•   Total Interest: Total interest is the cumulative cost of utilizing the credit line over its entire lifespan. The calculator provides an estimate, but your actual results will vary based on how much of the credit line you use at different points in the HELOC timeline, as well as on the variable interest rate characteristic of HELOCs.

How to Use the Kentucky HELOC Calculator

Understanding the terms used in the free HELOC calculator will help you use it effectively. Now follow these steps:

Step 1: Enter Your Planned or Actual HELOC Balance

Type in the amount you think you might borrow with a HELOC, or the amount you already owe. This helps the calculator compute the cost of the debt.

Step 2: Estimate Your Interest Rate

Enter the rate you’re seeing in the marketplace, or a rate you’ve been quoted by a lender. You can also use the calculator to assess possible future rates. For example, if you are thinking about a HELOC, you can use the calculator to compute the rate you’ve been offered, as well as a rate one percentage point higher and lower. This will help you see how payment amounts could rise or fall with the HELOC’s variable rate.

Step 3: Choose the Length of the Draw Period

A typical draw period is 10 years, but owners who are thinking about moving in a decade or so might want to choose a shorter draw period.

Step 4: Select Your Repayment Period

Input the time you think you’ll need to pay back the balance, with interest. A shorter repayment period means higher monthly payments but less interest paid over the life of the HELOC.

Step 5: Review Your Results

Look carefully at the final figures to assess how the projected payments fit into your long-term household budget. The output provides a clear look at the transition from the interest-only draw phase to the repayment phase.

What Is a Home Equity Line of Credit?

Once you’ve run the numbers with the HELOC calculator, you might be interested in exploring what it takes to obtain a HELOC and how these credit lines work. HELOCs provide homeowners with a flexible way to access the value built up in their primary residence. Unlike traditional products that offer a one-time disbursement, a HELOC is a revolving credit line, meaning you can repeatedly withdraw and repay funds as needed during the first phase of the HELOC, which is called the draw phase.

During the draw phase you may only be required to pay interest, which is why the HELOC payment calculator shows you an interest-only payment. (You can also determine interest payments using a HELOC interest-only calculator.) After the HELOC’s draw phase comes the repayment phase, during which time you’ll make larger monthly payments of the principal plus interest to repay the loan with interest. Using a HELOC repayment calculator to look ahead to this time can help you avoid surprises when the repayment phase comes.

To obtain a HELOC, you’ll need to have at least 15% to 20% equity in your home. (To determine your equity, subtract your home loan balance from your home’s estimated value. Divide the answer by the estimated value number to see your percentage of equity.) You’ll also need a credit score of at least 640 (and possibly a score of 680 or better). Lenders will also consider how much debt you already have.

Recommended: Different Types of Home Equity Loans

As homeowners in Kentucky have paid down their home loans and home values have risen, the amount of equity the average Bluegrass State owner has in their home has improved significantly. Kentucky homeowners now have around $60,000 in equity, on average. The average equity increase in the past five years has been greater than 200%. As the graphic shows, this is part of a national trend, with most states reporting an increase between 2020 and 2025. With a HELOC, lenders may allow borrowing of up to 90% of equity — so in the case of our average Kentucky homeowner, $54,000.

How to Use the HELOC Calculator Data to Your Advantage

By reviewing the HELOC payment calculator projections, you can quickly get a sense of how HELOC payment might fit into your monthly budget during the draw and repayment phases of the line of credit. However there are other ways to use the data to help your financial planning.

Budgeting: The calculator will show you an estimate of your monthly costs, both during the draw and repayment periods. But HELOCs often have a variable interest rate. So take a few minutes to input higher and lower interest rates to see how the higher rate, especially, would affect your monthly payments.

Planning: Experimenting with different repayment terms using the calculator can help you determine whether a shorter or longer repayment term is best for you.

Motivating: Seeing how payments rise during the repayment phase prompts some borrowers to pay down their HELOC balance during the draw phase so that they enter the repayment phase with a smaller amount due.

Tips on HELOCs

Managing a revolving credit line requires some discipline. Take these steps to help ensure your payments never become uncomfortable or impossible.

•  Shop around for the best lender: Compare offers from multiple lenders to find the most competitive interest rate combined with the terms that suit you.

•  Manage payments with extreme care: Stay up to date on your monthly obligations to protect your property.

•  Get real about rates: Many lenders offer low introductory rates for up to the first year. Use the calculator to estimate what will happen to your budget once that period ends and the full variable rate takes effect.

•  Set appropriate uses for the money: Some borrowers like to reserve their HELOC for renovations that add value to their property. Others are looking to consolidate high-interest debt. Whatever your use case, try to avoid using your HELOC like just another credit card. It’s easy to let your balance get out of hand and, unlike with a credit card, your home is the collateral for a HELOC.

Recommended: HELOC vs. Home Equity Loan

Alternatives to HELOCs

There are other ways to get equity out of your home in addition to a HELOC. So if you are uncertain about whether a revolving credit line is right for you — or if you just want to cover all your bases — check out other common borrowing options, below.

Home Equity Loan

A home equity loan differs from a revolving credit line primarily in the way funds are disbursed and repaid. Like a HELOC, a home equity loan is secured by your home. But the funds you borrow with a home equity loan are disbursed all at once, and you begin making principal-plus-interest payments almost immediately thereafter. A home equity loan calculator can help you compute what you owe. A home equity loan also usually has a fixed interest rate, so your monthly payment will remain the same for the entire repayment term of up to 30 years.

Recommended: What Is a Home Equity Loan?

Home Improvement Loan

This unsecured personal installment loan provides a lump sum of money at a fixed interest rate for a specific term. But unlike a HELOC or home equity loan, a home improvement loan does not require using your home as collateral. Home improvement loans often have a lower borrowing limit than HELOCs, and may have higher interest rates and shorter repayment terms as well.

Personal Line of Credit

A personal line of credit is a revolving credit account, but it is typically unsecured, meaning it is not backed by your home as collateral. The primary differences from a HELOC are the level of risk and the cost. Because your home is not at risk of foreclosure, a personal line of credit is less risky for the borrower; however, this generally results in a higher interest rate and a lower credit limit compared to a HELOC.

Cash-Out Refinance

A cash-out mortgage refinance replaces your existing mortgage with a new, larger one, allowing you to pocket the difference between the two loan amounts in cash. As you consider a cash-out refinance vs. a home equity line of credit, think about this: A refi results in a single, new primary mortgage as opposed to a separate, second line of credit. This can be an attractive option if you can also secure a lower interest rate on your new, larger mortgage. And some borrowers like to have one monthly payment instead of two.

The Takeaway

Spending time with a Kentucky free HELOC calculator can help ensure you’re well prepared for the HELOC application process and, even more important, that you have a good sense of costs and are ready to manage monthly payments once they arrive. Remember to get rate quotes from multiple lenders and make sure you understand what payments could be in both the draw and repayment phases of your HELOC. Then enjoy taking advantage of all that your home equity can offer.

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 that works much like a credit card, and that has a variable interest rate. You can borrow and repay funds as needed and only pay interest on the amount of the credit line that you use. In contrast, a home equity loan provides a single, lump-sum amount at a fixed interest rate. Both a HELOC and home equity loan use your home as collateral.

What is the benefit of having a variable interest rate?

While a variable rate carries the risk of increasing, it can also decrease if market rates fall, which would reduce your monthly payment. Additionally, lenders sometimes offer variable-rate borrowers a low introductory or “teaser” rate for a short period, which can be significantly lower than available fixed rates at that time.

What can I use the money for from a HELOC?

The money you draw from a home equity line of credit can be used for any purpose. Common uses include paying for home renovations, consolidating high-interest debt, or covering unexpected medical bills. Because the home serves as collateral, many homeowners like to use the funds for projects that increase the property’s market value.

What happens when the draw period ends?

After the draw period ends a homeowner with a HELOC will enter the repayment period. At this point, monthly payments will include both the principal and interest so there is a good chance you will need to begin making larger monthly payments. A free HELOC calculator can help you understand what to expect.

Learn more about home equity line of credits: