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HELOC vs Cash-Out Refinance Calculator

Compare all-in borrowing cost of tapping equity through a HELOC versus refinancing your whole mortgage.

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Money math without the spreadsheet headache. Plug in your numbers and I'll show you exactly where the dollars land.

Try a scenario

Click to load — tweak from there.

Inputs

Result

Lower-cost option

HELOC

HELOC path total interest

$99,050

Cash-out refi total interest

$146,475

Interest saved

$47,425

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How to use this

  1. 1Enter existing mortgage balance ($).
  2. 2Enter existing mortgage rate (%).
  3. 3Enter cash needed ($).
  4. 4Enter heloc rate (%).
  5. 5Enter cash-out refi rate (%).
  6. 6Enter years you'll carry the debt.
  7. 7Read your lower-cost option on the right — it updates as you type.
  8. 8Hit Share to keep the scenario or send it to someone.

About this calculator

A HELOC leaves your low first-mortgage rate untouched and only charges interest on what you draw, but usually carries a variable rate. A cash-out refinance replaces your entire mortgage at a new rate — potentially higher than your current one — but often at a lower fixed rate than a HELOC. This tool compares the blended cost of keeping your existing mortgage plus a HELOC against refinancing the whole balance, over the amount you need and the years you'll carry it.

FormulaHELOC Cost = Existing Mortgage Interest + Draw Amount × HELOC Rate × Years. Refi Cost = New Total Balance Interest over Years at New Rate.

Worked example

Using the values the calculator loads with:

Inputs

  • Existing mortgage balance: 250000 $
  • Existing mortgage rate: 3.5 %
  • Cash needed: 60000 $
  • HELOC rate: 9 %
  • Cash-out refi rate: 6.75 %
  • Years you'll carry the debt: 7

Results

  • Lower-cost option: HELOC
  • HELOC path total interest: $99,050
  • Cash-out refi total interest: $146,475
  • Interest saved: $47,425

What each field means

Inputs

Existing mortgage balance ($)
The existing mortgage balance used in the calculation, measured in $. Starts at 250000 $ so you have a working example on load.
Existing mortgage rate (%)
The existing mortgage rate used in the calculation, measured in %. Starts at 3.5 % so you have a working example on load. Accepted range: 0–15 %.
Cash needed ($)
The cash needed used in the calculation, measured in $. Starts at 60000 $ so you have a working example on load.
HELOC rate (%)
The heloc rate used in the calculation, measured in %. Starts at 9 % so you have a working example on load. Accepted range: 0–20 %.
Cash-out refi rate (%)
The cash-out refi rate used in the calculation, measured in %. Starts at 6.75 % so you have a working example on load. Accepted range: 0–15 %.
Years you'll carry the debt
The years you'll carry the debt used in the calculation. Starts at 7 so you have a working example on load. Accepted range: 1–30.

Results

Lower-cost option
Returned as a plain value and shown as the headline result. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
HELOC path total interest
Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
Cash-out refi total interest
Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
Interest saved
Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.

FAQ

When does a HELOC usually win?

When your existing first mortgage rate is well below current market rates — refinancing the whole balance to a higher rate to access a fraction of it in cash is usually the expensive move.

When does cash-out refi win?

When you need a large amount relative to your balance, want a fixed rate, or current mortgage rates are close to or below your existing rate.

Does this include closing costs?

Add the refi's closing costs (2-5% of the new loan) into your own comparison; this model isolates the interest cost difference so you can layer fees on top.

Accuracy and limitations

  • Results are estimates before tax, fees, and inflation unless an input explicitly covers them.
  • Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.
  • This is educational maths, not financial advice. Check anything contractual with the lender or your accountant.

Related tools

HELOC Payment Calculator

Interest-only draw payments and the repayment shock after.

Cash-Out Refinance Calculator

Cash you can pull, new payment, and lifetime interest change.

Cite this calculator

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APA
RevenueLab. (2026). HELOC vs Cash-Out Refinance Calculator. Retrieved from https://www.revenuelab.fyi/toolbox/heloc-vs-cash-out-refi
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<p>Source: <a href="https://www.revenuelab.fyi/toolbox/heloc-vs-cash-out-refi" target="_blank" rel="noopener">HELOC vs Cash-Out Refinance Calculator — RevenueLab</a> (2026).</p>
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Source: [HELOC vs Cash-Out Refinance Calculator — RevenueLab](https://www.revenuelab.fyi/toolbox/heloc-vs-cash-out-refi) (2026).
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