YOUR NUMBERS. A CLEARER PICTURE.
Staged-draw interest calculator
A renovation rarely happens all at once. Estimate the interest when you borrow in three phases, and compare it with drawing the total on day one.
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THE TIMING COUNTS, TOO
Borrow as the work unfolds.
See each phase’s outstanding balance and interest, plus the difference from borrowing the entire amount at the start.
Same money. Different timing.
Interest for each phase is the accumulated balance × annual rate ÷ 12 × months in that phase. The day-one comparison uses all three draws for the full combined period. All interest is assumed paid as it accrues, without principal payments, fees, or further draws.
In the starting example, borrowing $15,000 for three months, adding $20,000 for four months, and then adding $15,000 for five months costs approximately $2,900 in interest at a constant 8%. Drawing all $50,000 for all 12 months costs $4,000. Both leave $50,000 in principal to repay.
Actual daily balances, changing rates, required minimum draws, and fees can change the outcome. Future access to a HELOC is not guaranteed; keep a backup funding plan for essential project commitments.
Background: CFPB HELOC booklet · CFPB home equity plan disclosures. Calculations and scenarios on this page are original illustrations.
Make sense of the results.
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