New York HELOC Calculator

By SoFi Editors | Updated December 23, 2025

For many homeowners, the equity built up in their property is a significant financial asset. And as you consider how to get equity out of your home, a home equity line of credit (HELOC) is a smart and flexible borrowing option. A HELOC can provide you with ready funds that you can use, when needed, for anything from home repairs to debt consolidation. A HELOC calculator is a helpful resource if you’re thinking about borrowing. This guide will help you use the calculator to model potential borrowing scenarios, estimate monthly payments, and gain a clear picture of what your financial obligations would be before making any commitments. This free HELOC calculator will also be useful once you have a HELOC, helping you to see what your payments might be as you utilize the credit line.

  • Key Points
  • •   A HELOC provides a revolving line of credit that is secured by the equity in your home, functioning similarly to a credit card.
  • •   HELOCs have two distinct phases: a draw period, during which you can access funds as needed and pay only interest, followed by a repayment period when you’ll repay the borrowed principal plus interest.
  • •   To qualify, homeowners are typically required to have at least 15% equity in their property.
  • •   You can typically borrow up to 90% of your equity.
  • •   HELOCs most often have variable interest rates, which means that your monthly payments can change over time as rates fluctuate.

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

•   Current Interest Rate: The current interest rate is the rate charged on the HELOC’s outstanding balance. “Current” is important here, as HELOC rates are typically variable and can fluctuate over time.

•   Draw Period: HELOCs begin with a draw phase of between 5 and 10 years, during which a homeowner is permitted to access funds from their HELOC as needed, up to their credit line limit, and typically needs to pay only interest on the amount borrowed.

•   Repayment Period: After the draw period ends, a repayment phase of 10 to 20 years begins. During this time, the homeowner makes monthly payments of the principal plus interest until the borrowed amount is repaid.

•   Monthly Interest Payment: During the draw period, a homeowner who uses their credit line will make a monthly interest-only payment based on their current HELOC balance. The amount of the payment will vary based on their balance and their current interest rate.

•   Monthly Principal and Interest Payment: In the repayment period, the homeowner will make a monthly payment based on the balance owed and the current interest rate.

•   Total Interest: The HELOC calculator renders the sum of all interest payments that will be made over the life of the HELOC, from the beginning of the draw period to the end of the repayment period. Because variable interest rates are unpredictable and HELOC borrowers often add to the amount borrowed over the course of the draw phase, this number is a rough estimate.

How to Use the New York HELOC Calculator

Using a HELOC calculator is simple. Just follow these five steps.

Step 1: Enter the Amount You Plan to Borrow

In this field, enter the total amount you plan to borrow from the line of credit.

Step 2: Select Your Current Interest Rate

Here, you will enter an estimated annual interest rate. Since most HELOCs have variable rates, this input allows you to perform “what-if” analyses, testing higher and lower rates to see how changes might affect your monthly payments.

Step 3: Choose the Length of Your Draw Period

Select the duration of the draw period, which is the time frame you can borrow funds. This period is typically 10 years and often features lower, interest-only payments. This input helps the calculator estimate your interest payments during the initial phase of the HELOC.

Step 4: Specify Your Repayment Period

Next, choose the length of the repayment period, which follows the draw period and typically lasts 10 to 20 years. During this phase, you will pay back both the principal and interest. Your monthly payments will almost certainly increase significantly when you enter this period.

Step 5: Review Your Results

The HELOC payment calculator will generate estimated monthly payments for both an interest-only draw period and the repayment period (principal plus interest). Carefully reviewing these results allows you to assess the affordability of the HELOC at different stages and integrate these potential costs into your long-term financial plan.

Recommended: Different Types of Home Equity Loans

What Is a Home Equity Line of Credit?

Once you’ve experimented with running some numbers in a HELOC payment calculator, it’s a good idea to take a step back to make sure you understand what a home equity line of credit is, exactly. A HELOC allows homeowners to convert the equity built up in their property into funds to use for any purpose.

Unlike traditional loans that provide a single lump sum, a HELOC offers a revolving line of credit, which makes it especially versatile if you’re managing large or ongoing expenses. It’s important to understand that, because your home is collateral for the credit line, failing to make your payments could not only damage your credit score — it could place you at risk of foreclosure.

As we’ve seen above, the life cycle of a HELOC is divided into two phases:

•  The draw period: This is the initial phase, often lasting 10 years, during which you can withdraw funds as needed, up to your approved credit limit. During this time, many lenders require you to pay interest only on what you’ve borrowed, which keeps initial monthly costs low. Some borrowers use and repay HELOC funds repeatedly during the draw period, while others carry a balance and pay interest. A HELOC interest-only calculator can show you what payments would be based on your balance.

•  The repayment period: Once the draw period ends, you can no longer borrow money. For the next 10 to 20 years, you will make regular payments that cover both the outstanding principal balance and the accrued interest. A HELOC repayment calculator can show you what those payments might be.

Crucially, most HELOCs feature a variable interest rate, meaning the rate can rise or fall over time based on broader economic conditions. This flexibility is a key aspect of the product, but it also introduces an element of unpredictability in long-term payment amounts.

Recommended: HELOC vs. Home Equity Loan

The amount of equity a homeowner possesses is the single most important factor in their ability to secure a HELOC. 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. In recent years, rising home prices have caused a substantial increase in home equity for many current homeowners.

To establish your equity level, a lender will likely require an appraisal of your home before approving you for a HELOC. But to quickly see how much equity you might have, you can find your home’s estimated value on a real estate site. Subtract any loan balance(s) from that value number, and you’ll have a rough idea of your dollar value. Divide that value by the home’s estimated value to arrive at an equity percentage. If your equity is above 15%, you likely have adequate equity to obtain a home equity line of credit.

In New York, the average homeowner has seen their equity amount increase by more than 70% over the five years ending in 2025. The average home equity of an owner in New York is now more than $200,000. Here’s a look at how equity has risen nationwide between 2020 and 2025.

How to Use the HELOC Calculator Data to Your Advantage

The output from a HELOC payment calculator can help you plan your next money move and manage debt responsibly. Here are three key ways to use the calculator’s results:

•  Budgeting and affordability: The estimated monthly payments for both the draw and repayment phases are important metrics. Will these figures fit in your household budget? If so, a HELOC is a manageable commitment.

•  Scenario planning: A key advantage of the calculator is the ability to model different scenarios. By adjusting the amount borrowed, you can understand at what point the payments become untenable based on your budget. You might qualify for a larger credit line, but you should go into a HELOC with a sense of what your comfortable spending ceiling should be.

•  Long-term cost awareness: The “total Interest” figure provides a sobering look at the long-term cost of borrowing. This number helps you visualize the full financial impact of the HELOC over its entire life, encouraging more responsible use of your credit line. It is important to remember that the results generated by a HELOC calculator are estimates based on the inputs you provide. The variable interest rate could make the long-term costs higher — or lower.

Tips on HELOCs

A HELOC is a useful financial tool, but its flexibility demands some discipline. Otherwise you could find yourself owing an oversized amount in the repayment phase. These tips will help you maximize its benefits, and avoid potential financial pitfalls.

Compare lenders: Don’t settle for the first HELOC offer you receive. Shop around and compare interest rates, fees, draw periods, and repayment terms from multiple lenders to find the most favorable option for your situation. Use the HELOC calculator to see how the rates you’re being offered would affect your payments.

Manage use responsibly: Avoid using your HELOC as a long-term solution for short-term wants. Before you borrow, have a clear plan in place for what is and isn’t a suitable use of your credit line, and set a limit on how much of the credit line you might use to ensure you can manage payments without financial stress.

Plan for the repayment period: The transition from the draw period (with interest-only payments) to the repayment period (with principal and interest payments) can cause a significant jump in your monthly obligation. Budget for this increase from the very beginning to avoid “payment shock.”

Consider principal payments: Even if only interest payments are required during the draw period, making additional payments toward the principal can significantly reduce your total balance. This will lower the amount of interest you pay over the life of the loan and lead to a more manageable payment during the repayment period.

Monitor interest rates: If you have a variable-rate HELOC, stay aware of market interest rate trends. Anticipating potential increases in your rate can help you adjust your budget accordingly or make a decision to pay down the principal to lower your payment amount.

Alternatives to HELOCs

While a HELOC offers exceptional flexibility, it is not the right solution for every financial need. The best choice depends on your individual circumstances, risk tolerance, and goals. It’s a good idea to at least be aware of all your options.

Home Equity Loan

A home equity loan is another way to borrow money that uses your home as collateral. But what is a home equity loan and how is it different from a HELOC? Home equity loans provide you with a lump sum all at once. So they are especially good for projects where you know the overall cost up front. You immediately begin repaying the loan with monthly principal-plus-interest payments. The loan usually comes with a fixed interest rate and predictable monthly payments over a set term. For many borrowers, this predictability is a key determining factor as they think about a HELOC vs. a home equity loan. A home equity loan calculator can help you see what your monthly payments might be.

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.

A HELOC, however, allows you to borrow incrementally and pay interest only during the early years. A cash-out refi will mean you have to start making a new and often larger mortgage payment immediately after receiving the funds.

The Takeaway

A free HELOC calculator is an essential resource as you’re thinking about how to borrow against your home equity. Using the calculator provides a clear estimate of the potential costs associated with borrowing, and running scenarios involving different borrowed amounts, interest rates, and repayment terms can help borrowers find the right mix for their comfort level.

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 with a variable interest rate. It allows you to borrow and repay funds (or pay only interest) during a draw period, before repaying the principal plus interest during a repayment phase. In contrast, a home equity loan provides a single lump sum of money upfront at a fixed interest rate. The loan repayment begins immediately and payments are made in predictable, equal monthly installments.

How much can I borrow with a HELOC?

Lenders typically allow homeowners to borrow up to 90% of their home equity. The final approved amount will depend on factors such as your equity level, your credit score, debts, and income.

What can I use the money for from a HELOC?

Funds from a HELOC can be used for any purpose. Common uses include home renovations, consolidating high-interest debt, paying for educational or medical expenses, or covering other major expenses.

Is a HELOC interest rate fixed or variable?

The vast majority of HELOCs have a variable interest rate, meaning the rate can change over time based on changes in a benchmark index like the U.S. Prime Rate. While some lenders may offer a fixed-rate option, it is much less common.

What happens when the HELOC draw period ends?

When the draw period of a home equity line of credit ends, you can no longer borrow funds from the credit line. The loan then enters the repayment period, during which you must begin making regular payments that cover both the principal balance and the accrued interest. These payments are typically higher than the interest-only payments made during the draw period.

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 lower your monthly payment. Additionally, lenders sometimes offer a low introductory or “teaser” rate for a short period, which can be significantly lower than available fixed rates at that time.

Are there closing costs or fees for a HELOC?

Yes, HELOCs can come with fees, which may include an application fee, appraisal fee, closing costs, and sometimes an annual fee. Some HELOCs have inactivity fees, charged to homeowners who don’t use their credit line over a certain time period. However, the market is competitive, and some lenders may offer to reduce or waive some fees to attract borrowers.

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

While specific requirements vary by lender, a credit score of at least 640 (and for some lenders, 680), is the minimum needed to qualify for a HELOC. A higher credit score, particularly 700 or above, will typically result in a lower interest rate and more favorable loan terms.

Is the interest on a HELOC tax-deductible?

Interest paid on a HELOC may be tax-deductible, although you would likely need to itemize your tax return in order to claim this deduction. It’s best to consult a qualified tax advisor for guidance on your specific situation.

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