Massachusetts HELOC Calculator

By SoFi Editors | Updated January 29, 2026

Residential equity is often a homeowner’s most significant untapped financial resource. A HELOC payment calculator can help Bay State homeowners determine how to get equity out of their home using a home equity line of credit (HELOC). Funds from a HELOC can be used for practically any purpose, from paying down high-interest credit card debt to funding a large-scale home renovation.

This guide will help you use the HELOC payment calculator effectively to determine your ideal HELOC scenario. Along the way, you’ll learn everything there is to managing this line of credit responsibly.


  • Key Points
  • •  A HELOC is a revolving credit line, allowing users to borrow, repay, and re-borrow funds during a prescribed window of time.
  • •  Most versions of this credit line feature variable interest rates and require only interest payments in the early years.
  • •  The repayment period, during which borrowers repay all they have borrowed with a HELOC, plus interest, can last up to 20 years.
  • •  Because a HELOC is secured by the property, it typically carries lower interest rates than unsecured options like credit cards or personal lines of credit.
  • •  It’s important for borrowers to think strategically about the transition to the repayment phase before making their decision about whether or not to utilize a HELOC.



Calculator Definitions

•   HELOC Balance: The balance is the total amount you have drawn from your approved credit limit that has not yet been repaid. If you don’t yet have a HELOC, it is the amount you are thinking you need.

•   Current Interest Rate: This is the percentage charged on the funds you have accessed. HELOC rates are usually variable and can change periodically, following a predetermined benchmark rate.

•   Draw Period: This first phase of the HELOC, commonly lasting up to 10 years, is the draw period. During this time, you can withdraw funds as needed up to your credit limit. Many lenders only require you to pay interest during this phase.

•   Repayment Period: This stage follows the draw period and marks the time when you can no longer access new funds from the credit line. You must make regular payments to pay down both the principal balance and the interest. This phase can last up to 20 years.

•   Monthly Interest Payment: This is the minimum amount borrowers are required to pay each month during the draw period. It represents only the cost of borrowing the money you have already withdrawn and does not reduce your total debt.

•   Monthly Principal and Interest Payment: The required monthly obligation during the repayment phase is calculated so that the balance is fully repaid by the end of the term. This payment is typically higher than the interest-only phase.

•   Total Interest: This total reflects the cumulative cost of accessing your home equity over the entire lifespan of the HELOC. Remember that because HELOC rates are variable, this should be considered a rough estimate. Market rates will determine your total interest cost under real-world conditions.

How to Use the Massachusetts HELOC Calculator

The reliability of any financial forecast depends entirely on the data provided. Follow these steps to use the calculator accurately:

Step 1: Enter Your Planned or Actual HELOC Balance

The current outstanding balance is the primary metric for determining your monthly costs. If you have a HELOC already, enter your balance here. If you are thinking about obtaining a HELOC, enter the amount you think you would be borrowing.

Step 2: Estimate Your Interest Rate

Enter your current interest rate here or, if you are in the market for a HELOC, enter a rate quoted by a prospective lender or a rate you have seen posted online.

Step 3: Choose the Length of the Draw Period

The draw period is the timeframe during which you’ll have the flexibility to access cash for various projects.

Step 4: Select Your Repayment Period

Opting for a shorter repayment period will result in higher monthly payments but lower interest costs over the life of the HELOC. You can experiment with different repayment terms to determine the ideal monthly cost for your budget.

Step 5: Review Your Results

Here you can evaluate whether the projected payments for both the draw and repayment phases fit within your budget. If they do not, you can tinker with the HELOC balance amount or repayment term to identify the right mix that results in a payment you can handle. Remember that these results are estimates and your actual costs may vary somewhat due to the HELOC’s variable interest rate.

What Is a Home Equity Line of Credit?

If using the free HELOC calculator has you interested in applying for a HELOC, it’s a good idea to pause to make sure you understand exactly what a HELOC is and how it works. A HELOC is a revolving credit line secured by the equity in your home. In practice, it functions much like a credit card. You borrow funds as you need them, up to a credit line that is determined by your lender based on the value of your home equity and your overall creditworthiness. Lenders often require a credit score of at least 640, with some requiring a minimum score of 680. Once you qualify, though, many lenders allow borrowers to draw up to 90% of their equity. (Your equity is the appraised value of your home minus whatever you still owe on your home loan.)

The HELOC will have two phases: a draw period and a repayment period. During the draw period, which is often 10 years, you may only be required to pay interest on what you borrow. A HELOC payment calculator or HELOC interest-only calculator can show you what a monthly interest payment would be based on your balance. You can pay down the principal as well, and, if you do so, you have the full use of the credit line again for as long as the draw phase lasts. After the draw period ends you can no longer borrow money and will begin making monthly principal-plus-interest payments. There’s a HELOC repayment calculator at this point to help you see what you might owe. HELOCs have variable interest rates, as noted above, so the amount of your monthly payment can vary over the repayment term, which can be as long as 20 years.

The shift from the draw phase to the repayment phase is where many homeowners face challenges. During the draw period, it is easy to view the credit line as a source of “extra” cash, but doing so can result in debt mounting to the point that repayment time comes as a shock. Furthermore, using your home as collateral means that if you fail to keep current with payments, your property could be at risk of foreclosure. This is why using a HELOC payment calculator to estimate payments before signing on to a HELOC is an important step.

Recommended: What Is a Home Equity Line of Credit?

If you’re thinking about a HELOC in Massachusetts, you probably aren’t alone. Many of your neighbors are likely also benefitting from the rise in home values and, consequently, a rise in home equity. The average Massachusetts homeowner has seen their equity rise by more than 70% in the past five years, and now has an average home equity of $335,000. Massachusetts’ home equity increase is not as vigorous as that in neighboring New Hampshire or Connecticut, but the state’s high home values nevertheless mean a healthy equity level. The graphic shows that the Bay State is part of a larger national trend. Only one U.S. state, Louisiana, saw a decline in equity between 2020 and 2025.

How to Use the HELOC Calculator Data to Your Advantage

Utilizing the data generated by a Massachusetts HELOC calculator can help you make HELOC decisions and manage your HELOC effectively should you acquire a line of credit. Here are some examples of how you can put the calculator to work for you:

Plan your projects: The estimated draw and repayment payment amounts revealed by the calculator can show you how a renovation or large purchase fits into your monthly budget before you commit. If you’re looking at a kitchen renovation bid of, say, $50,000, you can run that number as well as, say, $40,000 to see how cutting $10,000 from your renovation budget would impact your monthly bill.

Explore debt consolidation: Many people use a HELOC to pay off higher-interest debts. If your monthly HELOC payment is less than the combined total of your credit-card payments, a HELOC might be a good fit for you.

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

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

Recommended: What Is a Home Equity Line of Credit?

Tips on HELOCs

HELOCs need to be managed with care so you don’t fall behind on bills. Here are some tips for repaying your HELOC:

•  Shop around. Compare interest rates and fees offered by multiple lenders to find your ideal HELOC.

•  Consider making principal payments during the draw period to reduce what you will owe when you hit the repayment phase.

•  Monitor interest rate trends, as you’ll want a sense of where your HELOC rate is going.

•  Avoid using the credit line for everyday expenses; focus instead on uses that provide long-term value or financial stability.

•  Set up automated payments or alerts for upcoming payments to maintain a perfect payment history and protect your credit score.

•  If you anticipate a significant increase in market rates, inquire with your HELOC lender about whether you have the option of locking in a fixed rate on a portion of your balance.

•  Keep a “liquidity cushion” in your savings to cover at least six months of payments in case of an unexpected change in your household income.

Recommended: HELOC vs. Home Equity Loan

Alternatives to HELOCs

While a revolving credit line offers great flexibility, it may not be the right choice for every homeowner. Different types of home equity loans are available to allow you to take advantage of your equity. But you could also consider a loan that doesn’t use your home as collateral. Here are some options:

Home Equity Loan

A home equity loan is often confused with a HELOC, but it functions differently. A HELOC is a revolving credit line, while a home equity loan is an installment loan. A home equity loan provides a lump-sum payment, borrowers typically begin repaying the loan immediately making principal-plus-interest payments that are driven by a fixed interest rate. Many home equity loan borrowers like predictability; the monthly payment amount will never change. The drawback is that you pay interest on the entire amount from day one, even if you don’t spend it all immediately. A home equity loan calculator can give you a sense of what payments might be.

Home Improvement Loan

A home improvement loan is often unsecured, meaning your home won’t be at risk if you fail to repay the loan. Like a home equity loan, a home improvement loan disburses a lump sum upfront. Because it is unsecured, it may have a higher interest rate than a home equity loan or HELOC. These unsecured loans 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 noticeably higher, and the amount you can borrow will probably be smaller than what you would get with a HELOC. However, it provides the same flexibility for ongoing expenses and it doesn’t require you to use your property as collateral.

Cash-Out Refinance

A cash-out mortgage refinance involves replacing your primary mortgage with an entirely new, larger mortgage. You would receive the difference between the two in cash. This can be a good move if current interest rates are lower than the rate on your existing mortgage. However, you’ll also have to factor in the closing costs associated with an entirely new loan. Even with a lower rate, these closing costs could make a cash-out refinance a nonstarter. But if the numbers align, another factor when you weigh a cash-out refinance vs. a home equity line of credit is that a refinance leaves you a single monthly payment. And because it’s a new loan, you can choose the term and whether it is a fixed-rate or variable-rate mortgage.

The Takeaway

Massachusetts homeowners have healthy equity levels, on average, and a free HELOC calculator can help you decide if a HELOC is the right borrowing vehicle for your budget and needs. If you are thinking about a HELOC, look closely at the estimated monthly payments, not only during the draw (interest-only) phase, but during the repayment phase. And secure interest rate quotes from multiple lenders to help ensure you get the most competitive rate available to you.

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?

Variable rates often start lower than fixed rates, which can save you money on interest during the initial years of your credit line. And if market interest rates decrease, your monthly payments will also go down. A variable-rate HELOC can be beneficial for homeowners who plan to pay off their balance quickly or who are comfortable with the risk of potential rate increases in exchange for lower initial costs during the draw period.

Are there closing costs or fees for a HELOC?

Fees for HELOCs can vary significantly depending on the lender you choose. Before signing on to a HELOC agreement, examine all fees and check for early closure or inactivity fees, as these can impact the total cost of borrowing.

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

Lenders typically look for a credit score of at least 640, though some require a score of 680 or better. And reaching the 700 mark or above could help you qualify for a lower interest rate on HELOC. To maintain a healthy score, keep current on your debt payments in the months leading up to a HELOC application, and avoid opening new credit accounts or closing old ones.

Is the interest on a HELOC tax-deductible?

HELOC interest is tax deductible, but you would need to itemize on your return in order to capture this deduction. Consult a tax professional regarding your specific tax year and financial circumstances before relying on any deduction in your decisionmaking.

Learn more about home equity line of credits: