Quickly model your credit line’s interest-only payment monthly. Adjust APR, margin, and balance in seconds. Export results, review examples, and make confident decisions now.
| Scenario | Balance | APR | Frequency | Method | Fees | Estimated Interest-Only Payment |
|---|---|---|---|---|---|---|
| Typical draw period payment | $50,000 | 8.250% | Monthly | Daily accrual (365) | $0 | ≈ $342.47 |
| Same balance with annual fee | $50,000 | 8.250% | Monthly | Daily accrual (365) | $75/year | ≈ $348.72 |
| Variable rate estimate | $35,000 | Index 5.000% + Margin 3.250% | Biweekly | Simple periodic | $5/payment | ≈ $116.35 |
Interest-only payment is estimated using daily accrual:
A simplified approach divides APR across payment periods:
For variable rates, the calculator uses: APR = Index + Margin + Adjustment, then applies floor and cap. Interest-only payments typically do not reduce principal unless you pay extra.
During a HELOC draw period, the minimum payment often covers interest only. The principal balance stays flat unless you voluntarily pay extra. This calculator estimates that minimum by applying your APR to the amount you have drawn, then converting it into a payment period.
A fixed rate uses the APR you enter. A variable rate is modeled as index plus margin, with an optional adjustment, then limited by the floor and cap. Because the rate is applied directly to the outstanding balance, small APR changes can noticeably move the interest-only bill. For example, raising APR from 8.00% to 9.00% adds about $41.67 per month on a $50,000 balance.
Lenders may compute interest daily using a 365 or 360 day basis, then bill monthly, biweekly, or weekly. Daily accrual multiplies the balance by APR and by days in the period divided by the day-count basis. The simple periodic method divides APR by payments per year for a quick estimate. If your lender uses 360, the same APR produces higher per‑day interest.
The schedule preview shows dates, interest, fees, and the total payment for each period you display. The Plotly graph visualizes the same series so you can spot how payment size responds when you change rate mode, fees, or frequency. If your balance changes during the month, treat the chart as a planning guide, not a statement. Use it for planning.
Interest-only payments can keep cash flow lower, but they do not reduce what you owe. Use the draw-period totals to budget for interest and fees, then think ahead to the repayment period when principal payments usually start. If you expect to pay down the line, enter an extra principal payment to see the lower interest-only cost. Consider saving the difference between interest-only and a full amortizing payment as a buffer.
Interest is estimated from your balance and APR for each payment period. You can use daily accrual with a 360 or 365 basis, or a simple periodic rate. Fees are added per payment for an estimated total.
Statements can use average daily balance, different cycle dates, compounding rules, and minimum fee thresholds. Variable rates may change mid‑cycle. Use the calculator for planning, then compare with your lender’s disclosures for exact billing.
Enter a representative balance, such as your expected average draw. If your balance swings widely, run multiple scenarios and bracket the result. The schedule and chart assume a constant balance during the periods shown.
The calculator computes index plus margin and any adjustment, then limits the result to your floor and cap. This prevents unrealistically low or high APR values and helps you model how contractual limits shape payments.
Not usually. An interest-only payment covers interest and fees, leaving principal unchanged. If you want principal to drop, add an extra payment to see the reduced balance used for interest in the estimate.
Yes. Annual fees are spread across payments for the chosen frequency, and per‑payment fees are added directly. The summary shows both fee per payment and total fees over the draw period.
Important Note: All the Calculators listed in this site are for educational purpose only and we do not guarentee the accuracy of results. Please do consult with other sources as well.