Tennessee HELOC Calculator

By SoFi Editors | Updated January 23, 2026

A home equity line of credit (HELOC) can be a flexible way for Tennessee homeowners to tap into the equity they’ve built in their homes. A Tennessee HELOC calculator estimates monthly payments during both the draw period and repayment period. The calculator allows you to explore different borrowing scenarios and make more informed decisions about using your home equity responsibly.

Keep reading to learn exactly how to use the Tennessee HELOC calculator, home equity trends in Tennessee, and alternatives to explore.


  • Key Points
  • •   A home equity line of credit provides a revolving credit limit based on the portion of the home value owned outright.
  • •   Lenders typically allow homeowners to access up to 90% of their equity, depending on creditworthiness and debt-to-income ratios.
  • •   The financing structure consists of an initial draw period, often lasting 10 years, followed by a structured repayment phase of up to 20 years.
  • •   Interest is typically charged only on the specific amount withdrawn from the credit line rather than the entire approved limit.
  • •   A HELOC calculator estimates monthly payments, allowing you to see if a HELOC fits within your budget before speaking with a lender.



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•   HELOC Balance: This represents the specific amount of money a homeowner has currently withdrawn and spent from the available credit limit.

•   Current Interest Rate: This is the variable percentage charged on the borrowed balance, which moves in response to broader economic shifts.

•   Draw Period: This is the initial phase, typically 10 years, where funds are accessible and borrowers often make interest-only payments.

•   Repayment Period: This is the subsequent phase, typically lasting 20 years, where the balance must be paid back with interest and the ability to withdraw funds ceases.

•   Monthly Interest Payment: This is the cost of borrowing the current balance during the draw phase, excluding any payments toward the principal.

•   Monthly Principal and Interest Payment: This is the combined amount required once the repayment phase begins, ensuring the debt is settled by the end of the term.

How to Use the Tennessee HELOC Calculator

The Tennessee HELOC calculator estimates monthly payments during the draw period and repayment period. Here’s a step-by-step guide on how to use it:

Step 1: Enter Your Planned or Actual HELOC Balance

The foundation of every projection starts with the current or projected balance. For those already utilizing a credit line, this represents the active debt accruing interest. For those in the planning stages, this input represents the anticipated cost of a project or need.

Step 2: Estimate Your Interest Rate

Enter the current rate provided by the lender or the current average of HELOCs. It’s also important to run models using rates that are two or three percentage points higher. This acts as a stress test for the household budget, since most HELOCs come with variable rates that may increase over time.

Step 3: Choose the Length of Your Draw Period

Defining the duration of the draw period helps in understanding the window of time available for accessing capital. This phase is usually 10 years, but some agreements may vary.

Step 4: Specify Your Repayment Period

The repayment period, often spanning 20 years, determines the pace at which the principal balance and interest must be retired. A longer term may lower the monthly requirement but will increase the total interest paid over the life of the product.

Step 5: Review Your Results

The final step involves a comprehensive analysis of the generated projections. A homeowner should evaluate the monthly principal and interest payment to ensure it remains manageable within their future budget.

What Is a Home Equity Line of Credit?

A home equity line of credit functions as a revolving credit tool that is secured by the homeowner’s primary residence. Equity is defined as the difference between the current market value of the property and the outstanding balance of any existing home loan or liens.

This product is distinct from lump-sum financing options, such as home equity loans, because it provides ongoing access to capital rather than a single payout. As the principal balance is paid down, the available credit is replenished, allowing the homeowner to use the funds repeatedly during the draw period.

The structure of this financing is divided into two distinct phases: the draw period and the repayment period.

•  During the draw period, the borrower has the freedom to withdraw funds as needed, up to the approved limit. In many cases, the monthly requirement is restricted to interest-only payments, which can keep costs low while a project is underway. Use a HELOC interest-only calculator to see what payments would be based on your balance.

•  Once the draw period concludes, the product enters the repayment phase. At this point, the ability to withdraw additional funds is terminated, and the borrower must begin paying back both the principal and the interest. This phase often lasts between 10 and 20 years. Because the payments now include principal, the monthly obligation can increase significantly. Use a HELOC repayment calculator to see what those payments might be.

What Is a HELOC Calculator?

A HELOC calculator is an online tool that helps homeowners estimate potential payments for a home equity line of credit based on factors like balance, interest rate, draw period, and repayment term. It provides a clearer picture of affordability and long-term borrowing costs before applying.

Recommended: How to Get Equity Out of Your Home

The landscape of home equity in Tennessee has been shaped by steady property value growth and shifting market conditions. In Middle Tennessee, specifically in growing counties where demand remains high, property appraisals have seen consistent increases. This growth directly translates into higher levels of equity for local homeowners.

From 2020 to 2025, average home equity increased 142% nationwide, adding up to roughly $11.5 trillion in value. In Tennessee, homeowners saw a 105% increase in equity over the same period, with the average homeowner holding approximately $112,723 in equity as of 2025. This growth reflects rising home values and a strong housing market in the state. Knoxville and Chattanooga are the top two cities in Tennessee that have seen the most growth since 2019.

Here’s a look at how equity has risen nationwide between 2020 and 2025.

How to Use the HELOC Calculator Data to Your Advantage

A HELOC calculator gives you insight into how borrowing against your home equity could affect your finances over time. By analyzing the results carefully, you can make more strategic decisions about how much to borrow, when to access funds, and how to manage repayment without putting unnecessary strain on your budget.

•  Set realistic borrowing limits: Use the calculator to determine a comfortable payment range rather than borrowing the maximum amount offered. This helps prevent overleveraging your home and keeps monthly obligations manageable.

•  Test interest rate sensitivity: Adjust the interest rate upward to see how future market changes could impact your payments. This prepares you for potential rate increases and helps you decide whether a HELOC fits your risk tolerance.

•  Plan cash flow during both phases: Review payment estimates for the draw and repayment periods separately. Understanding how payments may change later allows you to plan ahead for higher monthly costs.

•  Compare financing options: Use calculator results to compare a HELOC with a home equity loan or personal loan. Seeing differences in payments and total interest can clarify which option best suits your needs.

Tips on HELOCs

Proactive management is a necessary factor in successfully utilizing a credit line. Because this product is secured by your home, the stakes are high, and a disciplined approach to borrowing and repayment is required to protect your property. Below are some tips to keep in mind:

•  Shop around. Compare options from multiple lenders to find your best offer. Look for a competitive interest rate and low fees, as well as a repayment term and monthly payments that fit your budget.

•  Consider making principal payments during the draw period even if they are not required. This reduces the balance you will have to pay back later and saves on total interest.

•  Stay informed with rates. Since rates are variable, staying informed helps you anticipate when your monthly payment might increase.

•  Maintain a healthy credit score to ensure you can qualify for the best refinancing options or rate locks if they are offered by your lender.

•  Keep a clear record of how the funds are used. If the funds are used to build or substantially improve the home that secures the credit line, the interest paid may be tax-deductible.

•  Avoid using the credit line for small, everyday purchases. Treat it as a strategic tool for major expenses or wealth-building opportunities.

•  Be aware of fees. Check for any annual fees, inactivity fees, or early closure fees in your agreement to avoid unexpected costs.

Recommended: ***What Is a Home Equity Line of Credit?

Alternatives to HELOCs

Exploring multiple financing paths is a sound strategic move because every homeowner has a different financial profile and different goals. While a revolving credit line offers high flexibility, other products might provide more stability or better suit a specific type of project. Here are four other options to consider:

Home Equity Loan

A home equity loan is a second mortgage that provides a fixed-rate, lump-sum payout. Unlike a revolving line, you receive all the funds at once and begin repaying the principal and interest immediately. This is a strong option for individuals who have a specific, one-time expense and prefer the security of consistent monthly payments that never change over the life of the financing. A home equity loan calculator can help you compare the cost of this product to that of a HELOC.

Recommended: Different Types of Home Equity Loans

Home Improvement Loan

A home improvement loan is typically an unsecured financing option, meaning it does not require your home to be used as collateral. This can be an attractive choice for specific projects where the homeowner wants to avoid the risk of foreclosure associated with secured products. These often come with fixed interest rates and a set repayment term, providing predictability for a specific renovation budget. While the interest rates may be higher than equity-based products, the lack of a lien on the property reduces the overall risk to the home.

Personal Line of Credit

A personal line of credit is a revolving option that is not tied to the home. Much like a HELOC, it allows for flexible withdrawals, and interest is only charged on the amount used. However, because it is unsecured, the interest rates are generally higher, and the credit limits may be lower than those available through equity-based products.

Cash-Out Refinance

A cash-out mortgage refinance involves replacing your primary mortgage with a completely new one for a higher amount than what you currently owe. The difference is paid out to you in cash. This can be beneficial if current market interest rates are lower than the rate on your existing mortgage, as it allows you to consolidate your debt into a single monthly payment. However, it requires paying new closing costs and resets the timeline of your primary mortgage.

Recommended: Cash-Out Refinance vs Home Equity Line of Credit

The Takeaway

Success with a home equity line of credit in Tennessee depends on having a clear repayment plan and the foresight to handle market fluctuations. The data provided by a HELOC calculator acts as a guide, helping you decide when to borrow and how to pay back the funds most efficiently. You can see if this fits within your budget before committing to the line of credit.

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 with a variable interest rate that allows you to withdraw and repay funds multiple times. In contrast, a home equity loan provides a single lump sum of cash with a fixed interest rate and set monthly payments from the start. Both are secured by your property, but the HELOC offers more flexibility while the home equity loan offers more predictability.

How much can I borrow with a HELOC?

Lenders typically allow you to borrow up to 90% of the equity in your home. To qualify, though, you need to have at least 15% equity.

What can I use the money for from a HELOC?

Funds from a credit line are flexible and can be used for a wide range of needs. Common uses include major home renovations, consolidating high-interest credit card debt, paying for education, or covering significant medical expenses.

What happens when the draw period ends?

When the draw period ends, you can no longer withdraw money from the credit line. You enter the repayment period, during which you must pay back the borrowed principal plus interest over a set number of years, usually 10 to 20. This phase typically results in a significant increase in your monthly payment because you are no longer making interest-only payments and must now settle the full balance.

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

Most financial institutions require a credit score of at least 640 to qualify for a credit line (some require 680). However, to access the most competitive interest rates and higher credit limits, lenders typically prefer a score of 700 or higher. Lenders also evaluate your debt-to-income ratio and employment history to ensure you have the financial capacity to manage the additional monthly obligations.

Learn more about home equity line of credits: