Louisiana HELOC Calculator

By SoFi Editors | Updated January 29, 2026

A HELOC lets you strategically leverage your property’s value to fund significant expenses of all kinds. For those who have built up a solid ownership stake in their home, this type of loan provides a way to get equity out of your home, borrowing money at a better interest rate than you’d find with a personal loan or credit card.

Understanding how these loans work is the first step toward making an informed decision, and a free Louisiana HELOC calculator can quickly 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 financial tool effectively.


  • Key Points
  • •  A HELOC provides a revolving line of credit where borrowers can access funds repeatedly as the balance is paid down during the initial phase.
  • •  The structure is divided into two distinct chapters: a draw period for accessing capital and a repayment period for satisfying the debt.
  • •  The primary residence functions as the underlying collateral, which involves the inherent risk of property loss if the repayment schedule is not maintained.
  • •  Funds obtained through this financing method offer high flexibility and can be applied toward various household goals, such as renovations or debt restructuring.
  • •  A home equity line of credit calculator allows you to estimate monthly payments before 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•   HELOC Balance: This figure represents the total amount of capital currently withdrawn from the credit line that has not yet been repaid.

•   Current Interest Rate: This is the percentage charged on the borrowed balance, which is typically variable and changes with the market.

•   Draw Period: The draw period is the initial phase, often lasting 10 years, where the homeowner can access funds and typically makes interest-only payments.

•   Repayment Period: This is the second phase where the credit line is closed to new withdrawals and the homeowner must pay back the principal and interest. During this time, the balance must be reduced to zero according to a set schedule.

•   Monthly Interest Payment: This describes the cost of borrowing for a single month, calculated based on the outstanding balance and the current rate. It does not contribute to reducing the principal amount owed unless additional funds are paid.

•   Monthly Principal and Interest Payment: This combined figure represents the total monthly amount required during the repayment phase to eventually reduce the balance to zero. This payment is typically significantly higher than the interest-only payments made during the draw period.

How to Use the Louisiana HELOC Calculator

Homeowners use the Louisiana HELOC calculator to evaluate their current budget and future debt capacity by simulating various borrowing scenarios. Here’s exactly how to use it:

Step 1: Enter the Amount You Plan to Borrow

Enter the amount you plan to borrow or the outstanding balance currently carried on the line of credit. Establishing this baseline is the first move in understanding the payoff trajectory and the interest obligations associated with the current or soon-to-be debt level.

Step 2: Estimate Your Interest Rate

Enter the average interest rate on HELOCs into the calculator. You can also test higher rates to see how a rate increase would affect your monthly payment.

Step 3: Choose the Length of Your Draw Period

Specify the number of years where funds can still be accessed, which is typically 10 years. This input allows the calculator to distinguish between the era of interest-only potential and the era of mandatory payoff.

Step 4: Specify Your Repayment Period

Instruct the tool by entering the number of years available to pay off the balance once the draw phase closes. This duration, typically between 10 and 20 years, dictates the size of future monthly principal and interest installments.

Step 5: Review Your Results

Analyze the modeled output to interpret future monthly obligations during the draw period and repayment period. This data allows for better comparison between different products and allows you to see if the monthly payments fit within your budget.

Recommended: Different Types of Home Equity Loans

What Is a Home Equity Line of Credit?

A home equity line of credit is a revolving line of credit that lets homeowners borrow against the equity in their home. It works much like a credit card, allowing you to draw funds as needed up to an approved limit, typically at a variable interest rate, and repay what you use over time. There are two periods in a HELOC: the draw period and the repayment period.

•   Draw period: During the draw period, which often lasts five to 10 years, you can access funds as needed and usually make interest-only payments on the amount you borrow. This phase offers flexibility for ongoing expenses like home improvements or debt consolidation. Use a HELOC interest-only calculator to see what payments would be based on your balance.

•   Repayment period: Once the draw period ends, the HELOC enters the repayment period, typically 10 to 20 years, when you can no longer borrow and must repay both principal and interest. Monthly payments typically increase during this phase as the balance is paid down. Use a HELOC repayment calculator to see what those payments might be.

Because a HELOC is secured by your home, borrowing responsibly and planning for future payment changes is essential. When used carefully, it can be a flexible and cost-effective way to access home equity.

Recommended: What Is a Home Equity Line of Credit?

Home equity trends across the U.S. have been shaped by rapid home price appreciation over the past several years. From 2020 to 2025, average home equity increased 142% nationwide, accounting for roughly $11.5 trillion in total value. Rising property values and steady home loan paydown significantly boosted homeowner wealth in many states, making home equity a powerful financial resource for renovations, debt consolidation, and other major expenses.

In Louisiana, however, the trend has been notably different. Over the same period, home equity declined by 22%, with the average homeowner holding $31,492 in equity as of 2025. While this represents a decrease compared to prior years, many Louisiana homeowners may still be able to tap into the equity they have built, depending on their loan balance, credit profile, and lender requirements.

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

A HELOC payment calculator does more than estimate payments — it gives you insight into how a line of credit could affect your finances over time. Below are two practical ways to use the results to make informed borrowing decisions:

Budget fit: Review the projected monthly payments during both the draw and repayment periods to see how they align with your current expenses. If the numbers comfortably fit your budget, a HELOC may be a sustainable option; if not, it’s a sign to borrow less or explore alternatives.

Scenario testing: The calculator allows you to experiment with different loan amounts and assumptions. By adjusting the balance or interest rate, you can pinpoint the maximum payment your budget can handle, even if you qualify for a higher credit limit.

Recommended: How to Get Equity Out of Your Home

Tips on HELOCs

Maintaining a line of credit requires a high degree of discipline and long-term responsibility. Here are tips on HELOCs to ensure you make the most of your credit line:

•  Borrow with a clear purpose: Use your HELOC for planned expenses like home improvements or debt consolidation, not everyday spending. This helps ensure the funds improve your financial position rather than create long-term debt.

•  Plan for variable interest rates: HELOC rates can rise over time, increasing your monthly payment. Stress-test your budget by assuming higher rates so you’re prepared for payment changes.

•  Pay down the principal early when possible: Making principal payments during the draw period reduces your balance before repayment begins. This can lower future payments and significantly cut total interest costs.

•  Limit how much you draw: Just because you’re approved for a large credit line doesn’t mean you should use it all. Borrow only what you need to keep payments manageable and protect your home equity.

•  Monitor your balance and lender terms: Review statements regularly and stay aware of changes to rates, fees, or repayment terms. Staying informed helps you avoid surprises and stay in control of your borrowing.

Alternatives to HELOCs

A line of credit is a versatile tool, but it is not the optimal choice for every financial scenario. Below are other options to consider:

Home Equity Loan

Often referred to as a second mortgage, a home equity loan provides a lump sum of cash at a fixed interest rate. Unlike the variable nature of a line of credit, the fixed rate ensures that monthly payments remain identical for the entire life of the financing. This predictability is a major advantage for households that operate on a strict budget and want to avoid the uncertainty of market-driven rate changes. 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 that can be used for specific residential projects. The primary impact for the borrower is that these are frequently unsecured, meaning the home is not used as collateral. While this typically results in a higher interest rate compared to equity-based options, it removes the immediate risk of foreclosure if the borrower faces financial hardship.

Personal Line of Credit

A personal line of credit is a revolving option that is not tied to the value of a home. Like a HELOC, it allows for flexible borrowing and repayment, but because it is unsecured, the interest rates are generally several points higher.

Cash-Out Refinance

A cash-out mortgage refinance replaces the primary mortgage with an entirely new mortgage for a larger amount than what is currently owed, with the difference paid out in cash. The impact on the borrower is significant because it resets the terms of the original mortgage entirely. If current market rates are lower than the rate on the existing mortgage, a cash-out refinance can be a powerful way to access equity while potentially lowering the overall cost of debt. When comparing a cash-out refinance vs. home equity line of credit, a cash-out refinance allows the homeowner to maintain a single monthly payment rather than managing two separate debts.

Recommended: HELOC vs. Home Equity Loan

The Takeaway

A Louisiana HELOC calculator can be a helpful starting point for understanding how tapping into home equity might fit into your overall financial plan. By estimating potential payments, it allows homeowners to explore borrowing scenarios with greater clarity and confidence. Used thoughtfully, the calculator can support smarter budgeting, responsible borrowing, and more informed conversations with lenders.

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 provides a revolving line of credit with variable interest rates, allowing you to borrow, repay, and re-borrow funds during a set draw period. Conversely, a home equity loan provides a one-time lump sum with a fixed interest rate and a structured payoff schedule that begins immediately. While the credit line offers flexibility for ongoing needs, the loan provides predictability through consistent monthly payments for the entire term.

How much can I borrow with a HELOC?

Lenders typically allow you to borrow up to 90% of the equity you have in your home. However, to qualify, you typically need at least 15% equity. Lenders also evaluate your creditworthiness, income history, and debt-to-income ratio to determine your borrowing amount.

What happens when the draw period ends?

When the draw period concludes, you lose the ability to withdraw additional funds. The arrangement enters the repayment phase, typically lasting 10 to 20 years, where you must make mandatory monthly payments covering both principal and interest.

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

Some lenders may consider scores as low as 640, but most prefer a credit score of 680 or higher to offer favorable terms. A higher score typically results in a lower interest rate and a higher borrowing limit. Lenders also evaluate your employment history and debt-to-income ratio to ensure you have the capacity to manage the additional financial obligation.

Learn more about home equity line of credits: