HELOC vs. Home Equity Loan Calculator

Compare an interest-only variable-rate line with a fixed-rate installment loan.

Lower modeled total cost

Home equity loan

$65,958 difference

HELOC draw-period payment$375

HELOC repayment payment$450

HELOC total cost$103,467

Home equity loan payment$478

Home equity loan total cost$37,509

Assumes the HELOC rate never changes and the full balance remains outstanding throughout its draw period.

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Planning guide

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Understand this estimate before using it

Quick answer

What does the HELOC vs. Home Equity Loan Calculator do?

Compare modeled payments and total costs for two equity products. It places revolving HELOC and fixed home-equity-loan assumptions on a common horizon to compare modeled payments, interest, and fees.

Formula and calculation method

It places revolving HELOC and fixed home-equity-loan assumptions on a common horizon to compare modeled payments, interest, and fees.

The result is only as reliable as the inputs. Use current balances, rates, fees, dates, and documents; then change uncertain assumptions to see whether the conclusion remains stable.

How to interpret the result

Treat the output as a comparison or planning range, not a quote, approval, eligibility decision, tax return, or prediction. Review the breakdown—not only its headline number—and read every stated exclusion.

For current background, review CFPB home-equity guidance. Product documents and official program tools control when they differ from this educational model.

Worked scenario

Put the result in context

For a $500,000 home with $300,000 of existing secured debt and an 80% combined-LTV assumption, the theoretical debt ceiling is $400,000, leaving $100,000 before product limits, fees, underwriting, and required equity cushions.

This scenario illustrates the method; it is not a quote, forecast, recommendation, or substitute for entering your actual facts.

Before you calculate

Gather current information before changing the defaults. A result based on verified records is more useful than a precise answer built from guesses.

the amount you want to borrow

Check the date, unit, and source of this input before entering it.

the HELOC's rate, draw period and repayment period, and fees

Check the date, unit, and source of this input before entering it.

the home equity loan's rate, term and fees

Check the date, unit, and source of this input before entering it.

the time horizon each product runs over

Check the date, unit, and source of this input before entering it.

What the result can answer

It can show how the entered assumptions interact, provide a consistent comparison, and reveal whether changing one important input materially changes the estimate.

What the result cannot decide

It cannot confirm approval, eligibility, market pricing, future performance, legal or tax treatment, contract quality, or whether the choice fits every part of your finances.

A practical next-step workflow

01 · Verify
Compare the inputs with current statements, quotes, official rules, and product documents.
02 · Stress-test
Run a second case with a less favorable value for the time horizon each product runs over.
03 · Confirm
Set the HELOC and loan to the same borrowing horizon before trusting the winner, and remember the HELOC's rate is usually variable before acting.

Frequently asked questions

What is combined loan-to-value?

CLTV divides all debt secured by the property by its value. It is a planning input, not a universal approval threshold.

Is a HELOC payment fixed?

Usually not. Draw-period payments and variable rates can change, and repayment-period payments may be materially higher.

What can make this estimate differ from an actual result?

Timing, rounding, rate changes, fees, taxes, eligibility rules, product conventions, and facts not requested by this focused calculator can all create differences.

Which inputs deserve a second scenario?

Retest any input that is quoted rather than fixed, depends on future behavior, or materially changes the result. Conservative and optimistic cases reveal more than false precision.

What should I verify before making a decision?

Verify current statements, disclosures, official rules, taxes, fees, cancellation or prepayment terms, and the consequences of a less favorable outcome.

Continue your research

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Prepared by Loan Lyze Editorial and reviewed under the Loan Lyze editorial framework on November 8, 2026. Educational estimate only. See our methodology, editorial policy, and corrections policy.

HELOC vs. Home Equity Loan Calculator

Compare two ways to borrow