Home Equity Line of Credit Calculator
Calculate the monthly payment and total cost of a home equity line of credit (HELOC).
Tip: A HELOC has a variable rate — budget for a possible rate increase, especially when the Bank of Albania raises its base rate.
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About this digital tool
The home equity line of credit (HELOC) calculator shows the monthly payment and total cost of a credit line secured by the equity in your property. Unlike an ordinary loan, you have a limit and draw whenever you need, paying interest only on the amount used. The tool models the two phases: the draw period, when usually only interest is paid, and the repayment period, when principal is paid too.
It is useful for partial and variable expenses, such as renovations done in stages. The rate is usually variable, so payments can rise when market rates rise. The result is an estimate and the product may not be offered by every bank; confirm the terms, fees and drawdown rules with the bank.
How to use
- Enter the credit line limit
- Enter the amount you plan to draw
- Enter the interest rate (variable)
- Enter the draw and repayment periods
- See the monthly payments in each phase
Frequently asked questions
What is the difference between a HELOC and a home equity loan?
A home equity loan gives you the full amount immediately at a fixed rate. A HELOC gives you a limit that you use as needed at a usually variable rate — more flexible but a little less certain.
How does the draw period work?
During the draw period (5–10 years), you can borrow and repay funds freely. You pay interest only on the amount used. After this period, full repayment begins.
Are there opening costs?
Yes, usually property valuation costs (20,000–50,000 ALL), an arrangement fee (0.5–1%) and insurance. Some banks waive these if you keep the line open for a minimum period.
What happens when the draw period ends?
You can no longer borrow and repayment of principal plus interest begins, so the monthly payment usually rises significantly. Prepare for this change.
Is the HELOC rate fixed?
Usually not, it is often variable and follows a reference rate. So the payment can change over time; also calculate a scenario with a higher rate.