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 one’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 = (CHB × RATE) × ( (1 + RATE)^(12 × RP)) / ( (1 + RATE)^(12 × RP) – 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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**Simple Interest Formula in Excel (With 3 Practical Examples)****How to Find Interest Rate in Future Value Annuity (2 Examples)****Create Post-Judgment Interest Calculator in Excel (With 2 Cases)****How to Split Principal and Interest in EMI in Excel (with Easy Steps)****Perform Carried Interest Calculation in Excel (with Easy Steps)**

### 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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In your HELOC Tutorial, I can’t find where you got the up arrow between the c9 and c10 in the heloc payment formula of c11

Hi Tom

Thank you for your query. The arrow (^) is called the caret symbol or circumflex symbol.

For a U.S. keyboard, hold down the Shift button and press the number key 6 at the top of the keyboard ( Shift + 6 ) to get a caret symbol.

Thank you