Vermont HELOC Calculator

By SoFi Editors | Updated January 23, 2026

Vermont homeowners are enjoying high levels of equity, and many are thinking about how to get equity out of their home with a home equity line of credit (HELOC). A free HELOC calculator can be a useful tool as you explore a HELOC, as well as once you have one.

It allows you to estimate monthly payments during the two phases of the line of credit. This guide will show you how to use the calculator to maximum benefit. Along the way, you’ll also learn the ins and outs of HELOCs, as well as alternatives to a HELOC if this type of borrowing isn’t the right fit for you.


  • Key Points
  • •  A home equity line of credit provides a revolving account where funds can be accessed, repaid, and accessed again.
  • •  A HELOC calculator allows users to compute monthly payment amounts during the HELOC’s two phases, draw and repayment.
  • •  The HELOC is secured by the homeowner’s property, which serves as collateral for the credit line.
  • •  The draw period often lasts ten years and many arrangements allow for interest-only payments during this time.
  • •  Full repayment of both the principal balance and the interest is mandatory during the final repayment phase.



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 represents the total amount borrowed against the HELOC credit limit and not yet repaid. If you don’t yet have a HELOC, the balance would be the amount you plan to borrow.

•   Current Interest Rate: This is the percentage rate applied to the used portion of the credit line to compute monthly payments. A HELOC interest rate can fluctuate with market forces. The current rate for calculator purposes would be the one quoted by a lender if you don’t yet have a HELOC.

•   Draw Period: The draw period is the primary phase of the HELOC. It may last five to 10 years. During this time the homeowner has access to the credit line and typically isn’t required to repay what they owe, only to pay interest.

•   Repayment Period: At the end of the draw period this phase begins. It may last 10 to 20 years. During this time, monthly payments are required to repay the principal plus interest. The longer the repayment term, the lower monthly payments will likely be.

•   Monthly Interest Payment: This is an estimate of the cost incurred for using the funds during the draw phase, when only interest payments are necessary.

•   Monthly Principal and Interest Payment: This is an estimate of the total amount due each month once the repayment phase begins, covering both a portion of the borrowed amount and the interest costs.

How to Use the Vermont HELOC Calculator

Follow these steps to use the calculator. By adjusting variables such as the repayment term or the HELOC balance, the homeowner can see how different scenarios affect payment numbers.

Step 1: Enter Your Planned or Actual HELOC Balance

To begin, enter your current outstanding balance if you have a HELOC, or type in an estimate of the amount you wish to borrow with a HELOC. For example, if you might use the HELOC to consolidate debt, enter the total amount you owe on your credit cards and any personal loans.

Step 2: Estimate Your Interest Rate

Identify the current percentage charge listed on your account document or put in the interest rate quoted by a prospective lender.

Step 3: Choose the Length of the Draw Period

Select the duration of the HELOC’s first phase, during which you can actively withdraw funds and may only need to pay interest on what you borrow. The maximum draw period would be 10 years.

Step 4: Select Your Repayment Period

Enter the number of years (typically 10 to 20) that you want to have to pay back the borrowed funds, plus interest. The longer this time period the less monthly payments will be, but the more interest you will likely pay over the life of the HELOC.

Step 5: Review Your Results

Carefully examine the estimated monthly payment amounts during the draw and repayment phase.

What Is a Home Equity Line of Credit?

A home equity line of credit allows homeowners to borrow funds as needed, up to a credit line. A HELOC is secured by the value of your property. Unlike traditional installment products — such as a home loan or a personal loan — which provide a lump sum, this product functions more like a credit card with a very high credit limit. It allows you to borrow, repay what you owe, and then borrow again as long as you are in the draw phase.

The “revolving” nature of the credit line is its most distinct advantage. For a homeowner in Vermont facing a multi-stage project, such as a major renovation, this flexibility can be useful. You do not have to pay interest on the full credit limit from the outset; you only pay for the funds you have actually withdrawn. A HELOC interest-only calculator can give you the payment info for that first phase only.

Once the draw period ends, the product enters the repayment period, which could last up to 20 years. At this point, you can no longer withdraw any more money. The lender then calculates a new monthly payment that includes both the interest and the principal. Vermont homeowners can use a HELOC repayment calculator to prepare for this transition, to ensure the new, larger payment fits their budget.

Because your home serves as the collateral, a HELOC is a second mortgage. This allows lenders to offer lower interest rates than you would typically find with unsecured credit cards or a personal line of credit. But it also means that the stakes are high. If a homeowner is unable to maintain the payment schedule, the lender may foreclose.

Recommended: HELOC vs. Home Equity Loan

The climate is especially good for homeowners in Vermont, where home equity lending is concerned, thanks to a significant increase in equity over the five years ending in 2025. Average home equity has increased by 75% as of 2025, and the average owner is now sitting on more than $223,000 in equity. HELOC borrowers with a good credit history are often allowed to borrow up to 90% of their equity, which for the Vermont average owner would be $200,000.

As you can see from the graphic, the increase in Vermont is part of a larger U.S. trend in equity increases. Louisiana is the only U.S. state to experience a decline in average equity between 2020 and 2025.

How to Use the HELOC Calculator Data to Your Advantage

The data generated by a HELOC calculator is helpful in budgeting. But before you draw a single dollar from the credit line, it’s helpful to think about how you might use the numbers generated by the calculator. Here are some ideas:

Try out different scenarios: Try putting in different HELOC balance numbers or repayment terms and use the estimated monthly payment numbers you generate to make decisions based on these scenarios. Maybe you’re choosing between two contractors with different costs for a kitchen job. Put both estimates in as the HELOC balance and see if the difference in the monthly payment is a factor in your decisionmaking.

Get inspired to pay down the principal: You likely won’t be required to pay down the principal in the draw phase, but you can use the calculator to see what monthly payments might be on different balance amounts and let that inspire you to chip away at the principal before you enter the repayment phase. Trimming $10,000 from your $50,000 HELOC balance, for example, might help you feel more comfortable heading into repayment.

Compute high-interest estimates: HELOCs have a variable interest rate, as we have noted. The HELOC agreement will spell out how often your rate can change and by how much. Use that information to determine how high the rate might conceivably go in the repayment phase. Put that number into the calculator to see if you can handle it.

Recommended: Different Types of Home Equity Loans

Tips on HELOCs

Managing HELOCs requires a proactive approach to personal finance. Here are some things you can do to help ensure a good experience:

•  Shop around: Lenders can offer different interest rates and have different fees and policies. Before you decide on a lender, compare options from multiple institutions, including banks, credit unions, and online lenders. Use the HELOC payment calculator to run the numbers on each option.

•  Make a repayment plan: It can be easy to fall into the habit of using the HELOC for short-term wants or lifestyle purchases, but this is a risky practice. Before you draw funds, have a clear plan for how you will repay what you borrow.

•  Understand the fees: Be aware of the full cost of the loan. 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 the repayment period: 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. Plan for this.

Recommended: What is a Home Equity Loan

Alternatives to HELOCs

While a home equity line of credit is a versatile tool, it is not the ideal fit for every financial situation. Whether you’re feeling iffy about a HELOC or just want to cover all your bases, consider these other options:

Home Equity Loan

A home equity loan, like a HELOC, is a second mortgage, with your home securing the loan. The key difference is that this product provides a lump sum of cash all at once and you immediately begin repaying the loan with monthly principal-plus-interest payments. Home equity loans usually have a fixed interest rate, making it a predictable choice for those who want to avoid the fluctuations of a variable rate. A home equity loan calculator can help you estimate the payments.

Home Improvement Loan

A home improvement loan is usually unsecured, meaning your house is not at stake. Because of this, however, interest rates are usually higher than they would be on a HELOC or home equity loan. However, the approval process is often faster as you won’t need a home appraisal. Home improvement loans are generally lump-sum loans repaid, with interest, over a term of between three and 10 years. This is a good fit for those with smaller projects who don’t want to use their home as collateral and like the idea of predictable monthly payments.

Personal Line of Credit

A personal line of credit functions similarly to a HELOC in that the user can borrow and repay funds as needed. The key difference is that this credit line is usually unsecured. This means the credit limits are often lower, and the borrowing costs may be higher. This product is best for those who need ongoing access to smaller amounts of cash and have strong credit history but do not want to involve their home equity in the transaction. If you are thinking about selling your home fairly soon, for example, a personal line of credit could be a good fit.

Cash-Out Refinance

This type of mortgage refinance involves replacing the primary mortgage with a completely new, larger mortgage. The homeowner receives the difference between the two in cash. Monthly loan payments, including principal and interest, begin immediately. Because it’s a completely new loan, you can choose a fixed or variable interest rate. Borrowing money in this way can help you secure a lower overall interest rate because the loan is secured by your home. But if current interest rates are higher than the rate on your original home loan, this might not be a cost-efficient strategy.

When you compare a cash-out refinance vs. a home equity line of credit, note that a refinance delivers a lump-sum loan, while a HELOC allows you to borrow funds as needed and only pay interest on the amount you currently owe.

The Takeaway

Using a free HELOC calculator can help you understand the costs of borrowing and make important decisions regarding the amount you might borrow and the length of your repayment term. You’ll quickly see the impact a HELOC could have on your monthly budget. If a HELOC feels like the right step for you, you can use the calculator to assess the interest rates offered by different lenders.

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

How much can I borrow with a HELOC?

Lenders may allow you to access up to 90% percent of your home equity with a HELOC. They often have an internal maximum as well — an amount they will not exceed regardless of the homeowner’s equity amount.

What can I use the money for from a HELOC?

Money from a HELOC can be used for any purpose. Borrowers might pay off high-cost debt, make property renovations, or cover medical expenses. Some homeowners like to have the credit line as a safety net in case an unexpected expense crops up. Because the debt is secured by your residence, it’s key to watch your mounting debt number and use a HELOC payment calculator to plan for the repayment phase.

What happens when the draw period ends?

When the draw period on a HELOC finishes, you stop withdrawing funds. You enter the repayment phase, where you must make regular monthly payments covering both the principal and the borrowing cost, often over 20 years.

What is the benefit of having a variable interest rate?

A variable interest rate may start below the rate on a fixed-rate borrowing option. And if market conditions cause benchmark rates to decrease, your monthly carry cost for the balance may even go down, providing potential savings.

Learn more about home equity line of credits: