Montana HELOC Calculator

By SoFi Editors | Updated January 8, 2026

Using your home equity is a major financial decision that requires careful planning. A Montana HELOC payment calculator can help homeowners figure out their borrowing costs. Before applying for a home equity line of credit, use our calculator to estimate your monthly payments and total interest costs. This guide offers a wealth of information to get you started on your HELOC journey: definitions, steps to use the calculator, tips, and alternatives. You’ll come away with the knowledge to confidently decide if a HELOC fits your financial goals.

  • Key Points
  • •   A home equity line of credit (HELOC) is a revolving line of credit that allows you to use your home as collateral to secure funds.
  • •   During the draw period (typically 10 years) you can withdraw and use funds up to a predetermined limit.
  • •   The repayment period (20 years) requires the repayment of principal and interest.
  • •   Lenders generally require that you have a minimum of 15% equity in the home, and homeowners can typically borrow up to 90% of their equity.

Calculator Definitions

•   HELOC Balance: This is the amount of money a homeowner plans to draw with a HELOC or has currently drawn from their credit line.

•   Current Interest Rate: This is the percentage the lender charges for the use of funds. Because it is usually variable, this rate can shift based on broader economic conditions.

•   Draw Period: The draw period is the specific time frame, often lasting between 5 and 10 years, during which you can access funds from your HELOC up to your approved credit limit.

•   Repayment Period: The repayment phase begins after the draw period. It is usually 10 to 20 years.

•   Monthly Interest Payment: This refers to the minimum payment required during the draw period. Some HELOCs allow for interest-only payments during this phase, which cover the interest accrued on the borrowed amount but do not reduce the principal balance.

•   Monthly Principal and Interest Payment: This is the standard payment made during the repayment period. It includes a portion of the principal balance and the accrued interest, and is designed to pay off the line of credit over the specified term.

How to Use the Montana HELOC Calculator

The Montana HELOC payment calculator is easy to use.

Step 1: Enter Your Planned or Actual HELOC Balance

Enter the total amount you plan to borrow from the line of credit.

Step 2: Estimate Your Interest Rate

Input the annual interest rate for your line of credit.

Step 3: Choose the Length of the Draw Period

Select the duration of the draw period (typically 10 years).

Step 4: Select Your Repayment Period

Now enter the repayment period (typically 10 to 20 years).

Step 5: Review Your Results

Review the outputs, which show you the potential monthly payments during the draw and repayment periods.

Now that you are familiar with how to use the Montana calculator, let’s explore what is a home equity line of credit.

What Is a Home Equity Line of Credit?

A home equity line of credit, commonly known as a HELOC, offers homeowners a revolving credit line that is secured by the equity in your home. If you are a Montana homeowner who has built up equity in your property, then you will want to understand how to get equity out of your home.

First, your home equity is the difference between your home’s current market value and the outstanding balance on your home loan and any other loans you might have where your home is used as collateral.

A HELOC has a draw period, usually 5 to 10 years and a repayment period, usually 10 to 20 years. During the draw period you can withdraw funds as needed, up to your approved credit limit. You are often required to make payments only on the interest that accrues on your outstanding balance. Use a HELOC interest-only calculator to help you figure out payment amounts for the draw period.

For the repayment period, you can no longer withdraw funds, and your required monthly payments will increase significantly to cover both the principal balance and the interest. The HELOC repayment calculator is a helpful tool for budgeting for this phase.

Variable interest rates are typical for a HELOC (unlike a standard home equity loan, which usually offers a fixed interest rate).

The biggest risk is that your home serves as collateral. If you fail to make payments, the lender could initiate foreclosure. On the other hand, because the HELOC is secured, lenders sometimes offer more competitive interest rates (compared to an unsecured option like a credit card).

Having a thorough understanding of a HELOC and how it works will help you use the Montana HELOC calculator to its potential.

Recommended: HELOC vs. Home Equity Loan

With a HELOC, as with different types of home equity loans, the amount of equity a homeowner possesses is the key to borrowing power. As you assess the equity built up in your home, it’s helpful to monitor national and local housing trends. Since 2020, increasing home prices have led to a surge in tappable equity for homeowners (see chart below). In Montana, home equity increased by 137% from 2020 to 2025, with average home equity in the range of $216,000.

How to Use the HELOC Calculator Data to Your Advantage

To get the most out of the Montana HELOC payment calculator, use the data to your advantage:

•  Estimate monthly payments: As you prepare for a large-scale project, figure the estimated monthly payments for both the draw and repayment periods so you have no surprises.

•  Budget within your means: Assess what you can afford by reviewing potential payments against your existing debt balances.

•  Experiment with variables: The main feature of the Montana payment calculator is its ability to model different scenarios. Adjust the amount borrowed, for example, to see at what point the payments become untenable based on your budget.

•  Prepare for lender discussions: Arrive at lender meetings armed with your estimated borrowing limit so your expectations are realistic.

Tips on HELOCs

HELOCs offer financial flexibility, but also come with risk. Use the following tips to help you approach applying for a HELOC wisely:

•  Check different lenders: Shop around with lenders and compare annual fees, inactivity fees, and prepayment penalties, as these impact the overall cost of borrowing.

•  Budget wisely: Prepare for the significant increase in monthly payments when transitioning from the interest-only draw period to the principal-and-interest repayment period.

•  Weigh the risks: A HELOC is secured by your home. The lender could foreclose if you fail to make payments.

•  Maintain your credit: Lenders typically require a credit score of 640 or higher.

Alternatives to HELOCs

A HELOC is one of many options for accessing home equity and securing major financing. Since the right choice depends on your financial situation, goals, and preferred repayment structure, review these alternatives before making a decision.

Home Equity Loan

Have a one-time project with a fixed cost? A home equity loan gives you a lump sum that you begin repaying immediately. The interest rate is typically fixed, which makes for consistent and predictable monthly payments. Refer to a home equity loan calculator to compare the cost of a home equity loan versus a HELOC.

Recommended: What Is a Home Equity Loan?

Home Improvement Loan

A home improvement loan is a personal loan for renovations and repairs. It is similar to a home equity loan in that it has predictable fixed payments. However, it is unsecured (does not use your home as collateral), which typically results in a higher interest rate.

Personal Line of Credit

A personal line of credit (PLOC) is an unsecured revolving line of credit, similar to a credit card. Because it does not use your home as collateral, a PLOC may have a higher interest rate and a lower credit limit compared to a HELOC.

Cash-Out Refinance

A cash-out mortgage refinance replaces a homeowner’s existing primary mortgage with a single, new loan for a larger amount. This process pays off the original mortgage debt, and the homeowner receives the remaining balance as cash. While this tool consolidates your debt into one new mortgage payment, it also resets your mortgage term. A cash-out refi is generally best when current market interest rates are lower than your existing mortgage rate, allowing you to access cash and potentially improve the terms of your primary debt.

If you are comparing a cash-out refinance vs. home equity line of credit, a cash-out refi leaves you with one payment. The HELOC gives you a second payment on top of your original mortgage payment.

The Takeaway

Montana homeowners can use the HELOC payment calculator to quickly estimate their borrowing power and projected monthly costs during the draw and repayment periods. Use the HELOC payment calculator to run scenarios with different borrowed amounts, interest rates, and repayment terms so you can find the right mix for your budget and goals.

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 happens when the draw period ends?

When the draw period ends, you enter the repayment period, typically lasting 10 to 20 years. You can no longer borrow from your credit line, and you must begin making regular monthly payments covering both principal and interest.

What is the benefit of having a variable interest rate?

The main benefit of a variable interest rate is that it may go down as market rates fall. However, this means your monthly payments could also increase, if benchmark rates rise.

Are there closing costs or fees for a HELOC?

Yes, HELOCs can have closing costs, typically ranging from 2% to 5% of the credit limit. Some lenders offer to reduce or waive the fees.

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

Homeowners need to have a 640 credit score or higher (some lenders look for a 680 minimum). Having a credit score of 700 or higher is even more attractive, resulting in a lower interest rate and more favorable terms.

Learn more about mortgages: