In this tutorial, I am going to show you the step-by-step procedures to make a **HELOC **payment calculator using principal and interest in excel. You can quickly use these steps even in multiple datasets to find the **HELOC **payment value. Throughout this tutorial, you will also learn some important excel tools and techniques which will be very useful in any excel related task.

## Download Practice Workbook

You can download the practice workbook from here.

## What is HELOC?

**HELOC **stands for **Home Equity Line** of Credit. It is a special type of loan based on the equity of oneâ€™s home mortgage. Also, it is different from other home equity loans like home loans and cash refinances. Below is the formula to calculate **HELOC** payments.

**HELOC Payment = Â (CHB Ã— RATE) Ã— ( (1 + RATE)^(12 Ã— RP)) / ( (1 + RATE)^(12 Ã— RP) â€“ 1 )**

Where,

**CHB = Current HELOC Balance (Principal)**

**RP= Repayment Periods in Years**

**RATE= Monthly Interest Rate**

## Step-by-Step Procedures to Make HELOC Payment Calculator Using Principal and Interest in Excel

We have taken a concise **excel** dataset to explain the steps clearly. The dataset has approximately **7 **rows and **2 **columns. Initially, we formatted all the cells containing dollar values in **Accounting **format and all the percentage values in % format. For all the datasets, we have **2 **unique columns which are **Property** and** Value**. Although we may vary the number of columns later on if that is needed.

### Step 1: Setting Up Data Table

In this first step, we will create the data table to insert the necessary parameters and format them properly.

- First, create a data table following the below format and insert the necessary parameters in the left column. Make sure to make the table headers bold.

### Step 2: Entering Input Values

Now, we have to insert the input values for which we want to calculate our **HELOC **payments. Let us see how to do that.

- For this step, type the necessary input values like
**CHB**,**RATE,**and**RP**.

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### Step 3: Finding Monthly Interest-Only Payments and Other Parameters

Here, we will calculate various parameters that we will use inside the final **HELOC **payment calculation formula. Follow the steps below to do this.

- To begin with, double-click on cell
**C8**and enter the below formula:

`=C5*C6`

- Next, press the
**Enter**key and you should get the value of**CHB**times**RATE**. - Now, double-click on cell
**C9**and insert the formula below:

`=1+((C6/100)/12)`

- Next, press the
**Enter**key and consequently, this will find the value of**1+RATE**. - Then, navigate to cell
**C10**and type in the following formula, and press the**Enter**key again:

`=12*C7`

**Read More:** **How to Calculate Monthly Interest Rate in Excel (3 Simple Methods)**

### Step 4: Calculating Final HELOC Payment

Once we have all the input parameters in hand, now we can proceed to the final calculation using the previous values.

- To start this final step, navigate to cell
**C11**and type in the following formula:

`=C8*((C9^C10)/((C9^C10)-1))`

- After that, press the
**Enter**key or click on any blank cell. - Finally, this will calculate the
**HELOC Payment**value with the help of the necessary parameters.

**Read More:** **Calculate Interest in Excel with Payments (3 Examples)**

## Conclusion

I hope that you were able to apply the methods that I showed in this tutorial on how to make a **HELOC **payment calculator using principal and interest in excel. As you can see, there are quite a few steps to achieve this. So follow each of the steps exactly. If you get stuck in any of the steps, I recommend going through them a few times to clear up any confusion. Lastly, to learn more **excel** techniques, follow our **ExcelDemy** website. If you have any queries, please let me know in the comments.

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