North Carolina HELOC Calculator

By SoFi Editors | Updated January 29, 2026

Your home doesn’t just provide shelter — it’s also a dynamic financial asset. And for homeowners in North Carolina, the ability to access the equity built up in a property with a home equity line of credit (HELOC) can expand horizons. HELOC funds can be used for practically any purpose and can fund a renovation or help you downsize your debts.

A North Carolina HELOC calculator is an indispensable resource on this journey, allowing you to see what monthly payments on a HELOC might be at various borrowed amounts and interest rates. This guide will help you use the calculator correctly and expand your knowledge of what a home equity line of credit is and what it can do for you.


  • Key Points
  • •  A home equity line of credit allows homeowners to borrow, repay, and reborrow funds, using equity as collateral.
  • •  A HELOC has two distinct stages and a free HELOC repayment calculator can help homeowners estimate their financial obligation at each stage.
  • •  Interest is calculated only on the portion of the credit line currently in use, providing a cost-effective alternative to lump-sum financing.
  • •  Most HELOCs have a variable interest rate tied to economic benchmarks, which can cause monthly payment amounts to fluctuate.
  • •  The flexibility of these funds allows them to be used for a wide range of purposes, including debt consolidation, education expenses, or as a financial reserve.



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•   HELOC Balance: This figure is the amount of money currently withdrawn from an existing HELOC or the amount you think that you will need to withdraw.

•   Current Interest Rate: The interest rate is the percentage of the amount you have borrowed that is charged for borrowing. Because HELOC rates are usually variable, the figure represents the current cost of borrowing rather than a permanent fixed rate.

•   Draw Period: The draw period is the initial timeframe, usually five to 10 years, during which the homeowner can actively withdraw funds from the equity product. During this phase, many agreements allow for interest-only payments to keep initial monthly costs manageable.

•   Repayment Period: Following the draw phase, the repayment period begins and typically spans 10 to 20 years. At this point, there is no further borrowing, and the homeowner must repay the outstanding principal plus interest. The shorter the repayment period, the higher monthly payments will likely be.

•   Monthly Interest Payment: This is the monthly payment option available during the draw period. It covers only the cost of borrowing and doesn’t include any money to repay what was borrowed.

•   Monthly Principal and Interest Payment: This payment is the amount required to fully pay off the borrowed funds, with interest, over the course of the repayment phase.

How to Use the North Carolina HELOC Calculator

Enter a few basic facts and you can get estimates of monthly payments during the draw and repayment phases. Here’s how:

Step 1: Enter Your Planned or Actual HELOC Balance

To begin the calculation, the calculator needs your current (or estimated) HELOC balance. This is not the total limit of your line of credit, but rather the specific amount you have already drawn or plan to draw.

Step 2: Estimate Your Interest Rate

The interest rate is the most volatile component of your financing. If you already have a HELOC, use your current rate. If you are thinking about getting a HELOC, use a rate quoted by a lender. Later you can input higher or lower rates to see how payments might change as the variable rate adjusts.

Step 3: Choose the Length of the Draw Period

The draw period is the window of time when the line of credit remains open for new withdrawals. While 10 years is a common standard, some agreements specify five years. Whatever period you choose, you can expect the monthly payment amount to increase significantly when the draw period ends.

Step 4: Select Your Repayment Period

The repayment period is the timeframe allotted to pay back the full balance, with interest. This phase typically lasts between 10 and 20 years. The shorter the repayment phase the higher you can expect your monthly bill to be.

Step 5: Review Your Results

The free HELOC calculator will provide a breakdown of your projected monthly obligations during both the draw and repayment phase. It’s important to examine these numbers to ensure that both estimates can fit comfortably in your budget.

What Is a Home Equity Line of Credit?

If using the HELOC calculator has piqued your interest in how to get equity out of your home, it’s helpful to take a step back and make sure you understand exactly how a HELOC works. A HELOC is a revolving credit line that uses your home as collateral. Technically, the HELOC is a second mortgage (assuming you are still paying off your home loan).

“Revolving” means that during a predetermined time period, you can borrow money from the credit line, repay it (if you wish) and then borrow again, up to your credit limit. HELOCs have two phases. The first, a draw phase, is when borrowing happens. Many lenders don’t require you to repay any of the principal during this time. You’ll just have to make monthly interest payments on whatever balance you are carrying. A HELOC interest-only calculator is another way to see what these payments might be.

After the draw comes the repayment phase. Monthly payments will increase in size as you begin to repay what you have borrowed, with interest. Using the HELOC payment calculator can help you understand what that jump in costs might look like so you can be prepared. You can use a HELOC repayment calculator to estimate payments as the variable interest rate on a HELOC changes during this time.

Lenders typically allow homeowners to access up to 90% of their equity with a HELOC, but they like the homeowner to have at least 15% equity in the home before greenlighting borrowing with a HELOC. To determine your equity level, subtract your mortgage balance from your home’s estimated value. Then divide the answer by the home value to get a percentage. Your credit score will be a factor in determining whether or not you qualify for this type of borrowing. At minimum, you would need a score of 640. Some lenders prefer 680. And for the best interest rates, a credit score of 700-plus is often necessary. It makes sense to look for borrowers with a good track record of managing credit: After all, if you fail to repay what you borrow with a HELOC, you risk foreclosure.

Recommended: Different Types of Home Equity Loans

HELOCs are pretty popular lately, as home equity has risen across the U.S., giving homeowners more equity to work with. The average homeowner in North Carolina has more than $120,000 in equity. In fact, average equity in the state has more than doubled since 2020. A credit line equivalent to 90% of the average equity would allow a North Carolina owner to borrow up to $108,000.

How to Use the HELOC Calculator Data to Your Advantage

Making decisions based on data from a HELOC payment calculator is a hallmark of sound financial planning. Just running the basic numbers in the calculator is a smart move. But you can also use the calculator and its output in more expansive ways:

Try running scenarios: Homeowners thinking about a HELOC can input different HELOC balances, interest rates, or repayment terms to see how each of these things will affect the amount of the monthly payment. This lets you see what a high or low monthly payment would be based on different interest rates. This is useful given that HELOCs’ variable interest rates can shift over time.

Evaluate debt-consolidation strategies: If you have balances on high-interest credit cards, you can add up the monthly payment amounts on your cards and compare that to the monthly payment you would have if you used a HELOC to pay off all that you owe on the cards at once. There’s a good chance your monthly payment with a HELOC would be less than the sum of what you now pay. And it would be a single payment instead of multiple payments.

Plan for future payments: Looking carefully at the monthly principal and interest payment during repayment will prepare you for how payments increase after the draw phase of a HELOC ends. Seeing these future figures early on can motivate a would-be borrower to put up some guardrails around what is and isn’t an appropriate use of a HELOC.

Recommended: HELOC vs. Home Equity Loan

Tips on HELOCs

Borrowing based on the equity in your home is a major responsibility that requires a clear understanding of the risks and rewards involved. There are other things you can do, in addition to using the free HELOC calculator, to ensure success.

•  Compare options from multiple lenders. Financial institutions offer different margins, fee structures, and introductory periods when rates tend to be especially low. A sweet “teaser rate” might look attractive for the first six months, but it’s important to also look at how much a variable rate can adjust, and how often, over the entire life of the HELOC.

•  Manage with care. Since the consequences of missing payments can include the loss of your home, keeping a close eye on your monthly budget is a top priority. A missed payment on a HELOC is far more serious than a missed payment on an unsecured credit card.

•  Take advantage of tax breaks. The interest on a HELOC, unlike the interest on a credit card or personal loan, is tax deductible in 2026 for homeowners who itemize their return. It’s a good idea to work with a tax advisor to take advantage of this and potential future tax strategies.

•  Make principal payments. During the draw phase you may not be required to pay down the principal, but it’s smart to try to send payment toward the principal, to the extent that your budget permits. It will make entering the repayment phase a less abrupt transition.

Alternatives to HELOCs

If you are unsure about a HELOC or just want to make sure you cover all the bases as you explore how to take advantage of your equity, you’ll want to take a little time to look at the other borrowing options that are likely available to you. For starters, make sure you understand what is a home equity loan and how it differs from a HELOC.

Home Equity Loan

A home equity loan, like a HELOC, is a second mortgage because it uses your home as collateral. But a home equity loan provides a homeowner with a lump sum of money all at once. It is a fixed-rate loan with predictable monthly payments that begin immediately after the funds are delivered. A home equity loan is often a smart choice for homeowners who have a specific, one-time expense with a known cost. A home equity loan calculator can show you what those payments might be.

Home Improvement Loan

This unsecured personal installment loan provides a lump sum of money at a fixed interest rate for a defined term. Unlike a HELOC or home equity loan, a home improvement loan does not use 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 like a HELOC, 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 in play, a personal line of credit is less risky for the borrower; however, this typically results in a higher interest rate and a lower credit limit compared to a HELOC.

Cash-Out Refinance

A cash-out mortgage refinance involves replacing your primary mortgage with a completely new one for a larger amount than you currently owe. You receive the difference in cash at closing. As you compare a cash-out refinance vs. a home equity line of credit it’s important to keep in mind that a refinance is only a good idea if current market interest rates are lower than your original mortgage rate. Closing costs on the refi are 2% to 5% of the home price.

The Takeaway

A North Carolina HELOC payment calculator can help you plan for your HELOC and navigate repayment without surprises. Understanding the definitions of key terms, the phases of the financing, and the various ways to interpret data can help you move forward with confidence. The next step if you’re interested in a revolving line of credit? Begin to look at lenders, their fees and terms, and get quotes on possible interest rates.

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 functions similarly to a credit card. You can borrow and repay funds as needed for up to a decade and pay interest on what you borrow according to a variable interest rate. In contrast, a home equity loan provides a one-time lump sum of cash with a fixed interest rate.

How much can I borrow with a HELOC?

Lenders may allow you to borrow up to 90% of your home equity, which is your home’s appraised value minus whatever you still owe on your home loan. Your specific limit will also be influenced by your credit score, income history, and debt-to-income ratio.

What can I use the money for from a HELOC?

There are no strict requirements on how the funds must be spent. Homeowners commonly use their line of credit for major home renovations, debt consolidation, education costs, or medical expenses. Having access to a credit line also serves as an effective financial safety net.

Is a HELOC interest rate fixed or variable?

Most HELOCs feature a variable interest rate that fluctuates based on a benchmark index, such as the U.S. prime rate. This means monthly payments can change as economic conditions shift.

Learn more about home equity lines of credit: