HELOC Calculator Canada

A home equity line of credit only demands interest each month, which is exactly why balances linger for years. This calculator shows your interest-only payment, then the real story: how long a fixed monthly payment actually takes to clear the balance, and what the interest costs along the way.

Amount you have drawn on the HELOC ($)HELOC interest rate (%, usually prime + a spread)Monthly payment you will actually make ($)

Interest calculated monthly on the drawn balance. HELOC rates are variable and usually priced as the lender’s prime rate plus a spread, so a rate rise lengthens every payoff shown here.

How it works

Interest on a HELOC is charged only on what you have drawn, calculated daily by most lenders and billed monthly. The minimum payment is typically that interest alone, so paying the minimum never reduces the balance by a cent.

The payoff calculation treats your payment as fixed: each month, interest is added on the shrinking balance and your payment comes off. Because the interest shrinks as the balance falls, the same payment clears the debt faster over time, as long as you do not draw on the line again.

Worked example

The calculator’s own output for $50,000 drawn at 6%, paid at a fixed $500 a month:

Item	Amount
Amount drawn	$50,000.00
Rate	6.00% (variable)
Interest-only monthly payment	$250.00
Fixed payment tested	$500.00 a month
Time to clear the balance	139 months (11 years, 7 months)
Total interest at that pace	$19,487.89

Frequently asked questions

What is the minimum payment on a HELOC in Canada?

Usually interest only on the drawn balance for that month. On $50,000 at 6%, that is $250, and paying it leaves the $50,000 balance untouched.

How much can I borrow on a HELOC?

Your home equity line and mortgage together cannot exceed 80% of your home’s appraised value, and the HELOC portion alone is capped at 65% of the value. You also need at least 20% equity (35% with some lenders for a standalone HELOC).

Is HELOC interest tax deductible in Canada?

Only if the borrowed money is used to earn business or investment income, and you can prove that use. Borrowing to invest in a TFSA or RRSP does not qualify. Borrowing for personal spending never qualifies.

Can the bank call in a HELOC?

Yes. A HELOC is a demand loan: the lender can reduce your limit or require repayment, which is one reason a large HELOC balance is riskier than the same balance on a term mortgage.

Should I lock part of my HELOC into a term?

Many lenders let you convert part of the balance into a fixed-term portion with set payments. That forces principal repayment and fixes the rate on that portion, at the cost of flexibility.

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For education only. This calculator gives estimates, not financial, tax or legal advice. Figures use 2026 rates where a rate is built in; confirm your own numbers before making a decision.