New Jersey HELOC Calculator

By SoFi Editors | Updated January 29, 2026

Homeownership in New Jersey often represents the largest single component of a household’s net worth. It also gives the state’s residents real borrowing power. If you’re among the Garden State homeowners exploring how to get equity out of your home with a home equity line of credit (HELOC), a free HELOC calculator will be a helpful resource.

This guide will show you how to use the calculator and its data in your decision making process and educate you on how a HELOC works, as this very flexible borrowing method has special characteristics you’ll want to be aware of before starting your borrowing journey.


  • Key Points
  • •  A home equity line of credit is a revolving credit line secured by the borrower’s primary residence.
  • •  A HELOC payment calculator allows users to compute monthly payment amounts for the two phases of a HELOC, draw and repayment.
  • •  Homeowners can typically access up to 90% of their equity, depending on the specific terms offered by the lender.
  • •  Most HELOCs feature variable interest rates.
  • •  Interest paid on a HELOC may be tax-deductible.



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 is the total amount you want to draw from your line of credit or the amount already drawn. Interest is calculated based on the outstanding balance.

•   Current Interest Rate: This is the percentage charged on the borrowed funds. Most HELOCs have a variable interest rate tied to a market index.

•   Draw Period: The draw period is the HELOC’s first phase, often up to 10 years, during which you can borrow funds as needed up to the credit limit. During this phase, you likely will only be required to pay interest on what you’ve borrowed, although some borrowers choose to repay the principal.

•   Repayment Period: This phase begins after the draw period ends and lasts 10 to 20 years. Homeowners can no longer borrow and must make regular payments that cover both the principal and the interest to fully pay off the balance.

•   Monthly Interest Payment: This figure shows the cost of borrowing for one month based on the current balance and interest rate. This is the interest-only payment amount during the draw phase.

•   Monthly Principal and Interest Payment: This is the total required monthly payment during the repayment phase, designed to eliminate the debt by the end of the term. It includes both the interest charges and a portion of the principal balance.

Understanding these definitions will help you grasp what is a home equity line of credit and how it works.

How to Use the New Jersey HELOC Calculator

Using the free HELOC calculator is easy. Simply follow these steps for the most accurate estimates.

Step 1: Enter Your Planned or Actual HELOC Balance

Entering the current outstanding balance is necessary to establish the baseline for repayment.

Step 2: Estimate Your Interest Rate

Since most lines of credit use variable rates, this percentage may shift over the life of the HELOC. Select the current rate or use the calculator to estimate higher or lower rates.

Step 3: Choose the Length of the Draw Period

Homeowners must indicate how long they intend to have active access to the fundsChoose a period of between 5 and 10 years.

Step 4: Select Your Repayment Period

This step defines the timeline for paying back the used funds plus interest, typically over 10 to 20 years. The longer the repayment period, the lower the monthly payments will usually be. However longer repayment periods typically cost more in interest over time.

Step 5: Review Your Results

The final step is to analyze the projected monthly payments to make sure they will fit into your household budget, both in the short and long term.

What Is a Home Equity Line of Credit?

If using the HELOC payment calculator reveals that monthly HELOC payments might fit into your budget, you’ll want to take a step back and make sure you understand exactly what a HELOC is and how it works before seeking out a lender. Unlike traditional installment debt where a borrower receives a lump sum, a HELOC allows a homeowner to withdraw funds as needed up to a predetermined credit limit. The revolving nature is one of its most distinct features: As the borrower pays down the balance, the credit line immediately becomes available to use again. This is similar to how a credit card functions, but because a HELOC is secured by your home, it will often have higher borrowing limits and lower interest rates.

A HELOC is divided into two phases. The first is the draw period, which typically lasts up to 10 years. During this time, the homeowner has the freedom to access the credit line as needed. Many lenders provide the option of making interest-only payments during this time, which can keep initial costs low. A HELOC interest-only calculator can show you what these payments might look like.

Once the draw period ends, the HELOC enters the repayment period, which can last 10 or even 20 years. At this point, the borrower can no longer draw on the credit line and must begin making regular payments that cover both the principal and the interest. A HELOC repayment calculator computes these larger payments.

Since your property is the collateral, failing to meet the payment obligations can lead to foreclosure. This means it’s essential to have a clear repayment strategy before borrowing with a HELOC. It’s also important to understand that HELOCs typically have variable interest rates, meaning the amount of interest the borrower will pay can change over time — which could be decades.

The flexibility of a revolving line of credit makes it ideal for projects with uncertain timelines, such as extensive home renovations where costs may be spread out over several years. Instead of paying interest on a large lump sum from day one, the homeowner only pays interest on the amount they have withdrawn. This efficiency, combined with the potential for lower rates, makes it a smart solution for those with disciplined spending habits.

Recommended: Different Types of Home Equity Loans

Home equity builds up as you make payments on your home loan. But equity also increases as home prices rise, and New Jersey has seen its share of price increases. In the fall of 2020, the median sale price of a New Jersey home was $386,000, according to Redfin. Fast forward to 2025 and the median sale price had increased to $559,500. The average New Jersey homeowner is now enjoying more than $270,000 in home equity, as equity has risen more than 120% in the state in the five years ending in 2025. If Jane and Joe Average qualified for a HELOC and were allowed to borrow up to 90% of their equity, they would have a credit line of $243,000.

The graphic shows how equity has increased across the U.S. in that same five-year time period.

How to Use the HELOC Calculator Data to Your Advantage

The monthly payment estimates provided by a HELOC can help with budgeting, scenario planning, and debt consolidation. Let’s look at these individually:

Budgeting: Having the monthly payment estimates from a free HELOC payment calculator allows homeowners to determine how the HELOC might fit into their budget, both during the draw and repayment phases. Running different HELOC balance numbers in the calculator can also help a homeowner set a maximum borrowing amount — by trying different numbers in the HELOC balance field, you can quickly see the point at which the monthly payments become untenable.

Scenario planning: Try out different repayment terms using the calculator to see what timeline feels right for your HELOC repayment phase. Remember that a shorter repayment term means higher monthly payments but likely will result in less interest paid overall. Think about how long you might stay in your home as well. Is this a forever house, or will you be moving in, say, in a decade? That might affect the repayment term you choose.

Debt consolidation: If you add up your total monthly payments on the credit cards or personal loan you’re currently carrying you can compare that number to the payment you’d be making if you used a HELOC to pay off all that debt. If the HELOC payments are lower, then using the credit line to erase credit card debt might be a good solution.

Tips on HELOCs

You’ve no doubt already gleaned that if you have a HELOC it’s important to have some guardrails around how you use the credit line. With interest-only payments for up to a decade, one can quickly rack up debts that, come repayment time, pose a real budget challenge. Here are a few other insights about how to obtain and manage a HELOC:

Shop around. Before signing on to a HELOC, you’ll want to compare interest rates, fees, and terms from multiple lenders, as their offerings can vary. Finding a lender with the best rates and fees can significantly reduce the cost of the HELOC over several decades.

Consider making proactive payments. You may not be required to pay down the principal owed on your HELOC during the draw phase, but it’s a good idea to direct some cash to this purpose when you can. That will help ensure you hit the repayment phase with a manageable monthly bill.

Watch interest rates. Your HELOC agreement will specify how often rates can change and by how much. Keep an eye on the rate so you aren’t surprised by a monthly bill. You can always return to the HELOC payment calculator to see how a rate change affects your payments.

Don’t miss payments. Maintaining a consistent payment history will protect your property from the risk of foreclosure — not to mention it’s a good thing for your credit score.

Recommended: HELOC vs. Home Equity Loan

Alternatives to HELOCs

A revolving line of credit may not be the ideal borrowing method for every homeowner. Depending on your financial habits, other options might offer more stability or a different risk profile. For starters, you’ll want to understand what is a home equity loan and how it differs from a HELOC.

Home Equity Loan

A home equity loan is an installment loan that provides a lump sum at a fixed interest rate. Unlike a revolving line, the borrower receives all funds at once and begins paying back both principal and interest immediately. If you prefer stable monthly payments and need funds for a large, one-time expense, this might be a good solution for you. A home equity loan calculator can show you what your payments might be based on the amount you wish to borrow.

Home Improvement Loan

This is typically an unsecured loan intended for specific residential projects. Since your home is not used as collateral, the property is not at risk of foreclosure. The tradeoff: Interest rates are typically higher than those for home-equity-based borrowing, and the amount you can borrow may be lower than what you would see with a HELOC.

Personal Line of Credit

Another generally unsecured loan, this is a credit line (vs. a lump-sum loan). It offers flexibility for ongoing expenses, but usually comes with a lower credit limit and higher interest rate than a HELOC or home equity loan because no collateral is involved.

Cash-Out Refinance

A cash-out mortgage refinance replaces your existing mortgage with a new, larger one. You receive the difference in cash. If you’re thinking about a cash-out refinance vs. a home equity line of credit there are a few considerations: A refinance will leave you with one monthly payment instead of two. This can be appealing, but it only makes sense if a refi allows you to secure a lower interest rate than you have on your original mortgage. Another point: With a refinance, you’ll begin repaying the loan immediately, while with a HELOC you can delay repaying your principal as long as you make the interest payments.

The Takeaway

A HELOC is a useful tool for New Jersey homeowners, offering the flexibility to borrow as needed by leveraging the value of their residence. However, using your home as collateral requires a high degree of responsibility and a clear understanding of the long-term obligations involved in paying back what is borrowed. A free HELOC calculator can provide the clarity needed to determine whether a HELOC is a good fit for your finances.

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 allows you to borrow and repay funds as needed, much like a credit card. A home equity loan is an installment loan that provides a one-time lump sum with a fixed interest rate. While both use your home as collateral, the HELOC offers greater flexibility for ongoing expenses but also a less predictable monthly payment due to its variable interest rate. The home equity loan provides predictable, fixed monthly payments from the start.

How much can I borrow with a HELOC?

Lenders may allow you to borrow up to 90% of your home equity. The specific limit is determined by your credit score, income, and debt-to-income ratio (your monthly debts divided by your gross monthly income).

What happens when the draw period ends?

When the draw period concludes on a home equity line of credit, you can no longer withdraw money. The repayment period begins, and you must start making monthly payments that cover both the principal and the interest. The repayment phase typically lasts between 10 and 20 years. It is important to prepare for this transition, as the shift from interest-only payments to full principal and interest payments can lead to a significant increase in your monthly bill.

Is the interest on a HELOC tax-deductible?

The interest paid on a line of credit may be tax-deductible, although you’ll need to itemize on your tax return to capture this deduction. A tax advisor can help you with this process and keep you apprised of any change in the rules concerning HELOCs.

Learn more about home equity line of credits: