Rhode Island HELOC Calculator

By SoFi Editors | Updated January 23, 2026

Congratulations. If you’ve been thinking about getting a home equity line of credit (HELOC), then you’ve probably been steadily paying down your home loan. In mere minutes, you can understand the estimated costs involved in the two phases of the HELOC, the draw phase and the repayment phase. Ready to get started? Follow our guidelines to use the free HELOC calculator properly. Along the way you’ll learn all the ins and outs of HELOCs so you’ll be prepared to borrow like a pro.


  • Key Points
  • •  A home equity line of credit is a revolving credit line, allowing users to withdraw and repay funds multiple times if they wish to do so.
  • •  Using a HELOC payment calculator can help homeowners think strategically about the costs of a HELOC and the transition to the repayment phase before deciding whether or not to borrow using this method.
  • •  Most HELOCs 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 and personal lines of credit.



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: Your balance is the amount you have drawn thus far on your HELOC (not the credit line, which might be much larger). If you don’t yet have a HELOC, the balance is the amount you think you would like to borrow.

•   Current Interest Rate: This is the percentage the lending institution is charging at the moment for borrowing with a HELOC. If you don’t yet have a HELOC, you can find interest rates online or request quotes from lenders you are interested in potentially borrowing from.

•   Draw Period: The draw period is the initial phase of a HELOC, typically lasting five to 10 years, during which the homeowner can access funds up to their credit limit. During this time, required monthly payments are frequently limited to the interest accrued on the balance used; principal payments are optional.

•   Repayment Period: In this second phase of the credit line, withdrawals end and the borrower repays all that they owe, plus interest, in monthly payments. This can take place over 10 or 20 years. The longer the repayment phase, the lower the monthly payments may be, but the more interest is usually paid over the full HELOC term.

•   Monthly Interest Payment: This is the amount the borrower will pay each month during the draw phase. The calculator estimates this number. In real-world conditions, HELOCs have variable interest rates so the actual payment amount may differ.

•   Monthly Principal and Interest Payment: In the repayment phase, the monthly payment will consist of both the principal and interest.

How to Use the Rhode Island HELOC Calculator

Now that you have learned a little about what is a home equity line of credit, give the calculator a try by following these steps:

Step 1: Enter Your Planned or Actual HELOC Balance

Type in the amount you owe on the HELOC, or the amount you think you would like to borrow. For example, if you have a bid from a contractor for a bathroom renovation, you might enter that number.

Step 2: Estimate Your Interest Rate

Input the rate provided by your lender, or use a rate you’ve been quoted in the process of researching prospective lenders.

Step 3: Choose the Length of the Draw Period

Select the number of years you wish to use the HELOC before you begin to make those mandatory principal-plus-interest payments.

Step 4: Select Your Repayment Period

Enter the number of years you wish to allocate for paying back the total balance once the draw phase concludes. Remember, as a rule, shorter repayment periods equal larger monthly payments.

Step 5: Review Your Results

Analyze the projected monthly payments to determine if these figures fit within a sustainable long-term budget.

What Is a Home Equity Line of Credit?

As a borrowing method, a HELOC functions quite differently from a standard lump-sum loan. Some basic ground rules: Most lenders will want you to have at least 15% to 20% equity in your property in order to borrow using your home as collateral. The fact that your home is the collateral means that the HELOC is, technically, a second mortgage (assuming you’re still paying off your first one). This also means that if you fail to make payments when they are due, the lender could foreclose. So while using a HELOC can feel a lot like using a credit card, your home is at risk if you fall behind on payments.

The amount one can borrow with a HELOC is largely determined by the market value of the residence and the amount remaining on the primary mortgage. Many lenders allow homeowners to borrow up to 90% of their equity.

As noted above, the HELOC will have two phases: a draw period and a repayment period. During the draw period (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. Do so and you’ll have the full use of the credit line again for as long as the draw phase lasts. After the draw period is over you can no longer borrow 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, so the amount of your monthly payment can vary over the repayment term, which can be as long as 20 years.

Recommended: How to Get Equity Out of Your Home

Rising property values in a specific region, such as Rhode Island, can significantly expand a homeowner’s HELOC borrowing capacity. The average Rhode Island homeowner’s equity more than doubled from 2020 through 2025 as home values trended upward. The average owner is now sitting on more than $250,000 in equity. A credit limit at 90% of that average equity would equal $225,000. These healthy equity levels are part of a national trend, as shown in the graphic.

How to Use the HELOC Calculator Data to Your Advantage

Utilizing the data from a Rhode Island HELOC calculator can help you make decisions and manage your HELOC effectively. These are ways 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 put down a deposit on the job. If you’re looking at a kitchen renovation bid of, say, $40,000, you can run that number as well as, say, $30,000 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, provided you can be disciplined in your use of the credit line for further purchases.

Have smart lender discussions: Knowing your estimated borrowing limit and payments helps you approach lenders from a position of strength.

Recommended: HELOC vs. Home Equity Loan

Tips on HELOCs

Managing a HELOC requires a disciplined approach. You want to make use of the credit line but keep your payments as low as possible and never miss one. Here are some success strategies:

•  Shop around: Different lenders offer different rates and terms. Before you lock in a lender, compare options from multiple institutions. Use the HELOC payment calculator to run the numbers on each option.

•  Make a repayment plan: It can be tempting to use home equity for a vacation or to keep on top of the latest fashion trends, but making routine purchases can be a risky practice. Before you build up debt, have a clear plan for how you will repay the borrowed amount. In the best case, using a HELOC helps you improve your financial stability (by paying down high-interest debt, for example) or add value to your home.

•  Understand fees: Know the full cost of borrowing. Some HELOCs have closing costs or annual maintenance fees, inactivity fees might be triggered if you don’t use the line of credit, and there could be early termination penalties if you close the account within a certain timeframe.

•  Prepare for repayment: One of the biggest financial shocks for HELOC borrowers is the transition from the draw period to the repayment period. If you have been making interest-only payments, your monthly debt will increase significantly when principal payments are added. Using the estimates from a free HELOC calculator, you can plan ahead.

Recommended: HELOC vs. Home Equity Line of Credit

Alternatives to HELOCs

There aren’t really different types of home equity loans, but there are different ways to borrow based on your equity. A HELOC is one of three methods. The other two are a home equity loan and a cash-out refinance. Learn about these and other methods that don’t involve using your home as collateral below.

Home Equity Loan

A home equity loan is, like a HELOC, a second mortgage because money is borrowed with your home as collateral. In contrast to a HELOC, though, a home equity loan delivers a single lump-sum payment. You’ll begin repaying what you have borrowed, with interest, immediately. Home equity loans usually have a fixed interest rate, so your monthly payment will usually stay the same through the life of the loan. Repayment terms can range from five to 30 years. A home equity loan calculator can show you what monthly payments might be with this type of loan.

Recommended: What Is a Home Equity Loan?

Home Improvement Loan

A home improvement loan is an unsecured personal borrowing option specifically designed for property upgrades. Unlike an equity-based credit line, this choice does not require the home to be used as collateral, which protects the owner from foreclosure in the event of default. These are usually installment loans, meaning the borrower receives a lump sum and pays it back with fixed payments over a set term.

Personal Line of Credit

A personal line of credit functions similarly to a HELOC but is typically unsecured. Approval and interest rates are based primarily on personal creditworthiness and income rather than property value. While this provides flexibility and removes the risk to the home, the interest rates are generally higher than those associated with equity-based products.

Cash-Out Refinance

A cash-out mortgage refinance involves replacing the existing primary mortgage with a completely new, larger one. The homeowner receives the difference between the two mortgages in cash, which can then be used for any purpose. Things to consider when comparing a cash-out refinance vs. a home equity line of credit: A refinance consolidates the debt into a single monthly payment, though it often involves higher closing costs and requires replacing the entire mortgage at current market rates. It’s important to consider the total cost of a refinance before committing to one.

The Takeaway

Understanding the mechanics of a HELOC can help you determine whether or not this method of borrowing is right for you. A HELOC payment calculator can show you what monthly payments would be — a critical part of the decisionmaking process. Seeking out rate quotes from multiple lenders and running them through the calculator can help you pinpoint the right partner for your borrowing journey.

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 credit line that, in practice, works much like a credit card, allowing you to withdraw funds as needed. In contrast, a home equity loan provides a single lump sum upfront. A HELOC usually has a variable interest rate, while a home equity loan has a fixed rate. While both are second mortgages, the HELOC offers more flexibility in how and when you use the funds, while the home equity loan provides more predictability for budget planning.

What can I use the money for from a HELOC?

The funds from a home equity line of credit are highly flexible and can be used for almost any purpose. Common uses include paying for home renovations or consolidating higher-interest debt. Some homeowners use a HELOC to pay for education expenses or cover unexpected medical bills. Others simply like to have a line of credit open in case life throws a surprise their way.

Are there closing costs or fees for a HELOC?

HELOCs often have lower upfront costs than home equity loans or refinances. But you will likely have to pay for an appraisal, and there may be other expenses such as annual maintenance fees, transaction fees, or inactivity fees if the credit line is not used. Some lenders charge an early closure fee if you pay off and close the account within the first 36 months of opening the credit line.

Is the interest on a HELOC tax-deductible?

Interest paid on a home equity line of credit may be tax-deductible if you itemize on your tax returns. Because tax laws are subject to change, it is important to consult a tax advisor to determine eligibility for these deductions based on your specific situation.

Learn more about home equity line of credits: