Rex says
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
Interest difference between the two
$3,155
Home equity loan total interest
$28,885
HELOC total interest
$32,040
Fixed loan monthly payment
$741
Combined loan-to-value
67.3%
Equity available at 85% CLTV
$152,000
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One click, a permanent link with your numbers baked in.
How to use this
- 1Enter home value ($).
- 2Enter first mortgage balance ($).
- 3Enter amount you need ($).
- 4Enter home equity loan rate (fixed) (%).
- 5Enter heloc rate (variable today) (%).
- 6Enter years you'll carry the debt (years).
- 7Enter average heloc balance drawn (% of limit).
- 8Read your interest difference between the two on the right — it updates as you type.
- 9Hit Share to keep the scenario or send it to someone.
About this calculator
Both products borrow against the same equity, but they price risk differently. A home equity loan gives a fixed rate and a fixed amortizing payment across the whole balance from day one. A HELOC gives a variable rate tied to prime, an interest-only draw period of usually ten years, then a repayment period where the payment jumps sharply. This calculator prices both over the horizon you plan to keep the debt, using your available equity, the amount you actually need, and each product's rate. Because a HELOC only charges interest on what you draw, it wins for staged spending like a renovation paid in phases; the fixed loan usually wins for a single lump need in a rising-rate environment. The tool also reports your combined loan-to-value ratio, since most lenders stop at 80-85% CLTV and price sharply higher above that line.
Worked example
Using the values the calculator loads with:
Inputs
- Home value: 520000 $
- First mortgage balance: 290000 $
- Amount you need: 60000 $
- Home equity loan rate (fixed): 8.4 %
- HELOC rate (variable today): 8.9 %
- Years you'll carry the debt: 10 years
- Average HELOC balance drawn: 60 % of limit
Results
- Interest difference between the two: $3,155
- Home equity loan total interest: $28,885
- HELOC total interest: $32,040
- Fixed loan monthly payment: $741
- Combined loan-to-value: 67.3%
- Equity available at 85% CLTV: $152,000
What each field means
Inputs
- Home value ($)
- The home value used in the calculation, measured in $. Starts at 520000 $ so you have a working example on load. Accepted range: 50000–5000000 $.
- First mortgage balance ($)
- The first mortgage balance used in the calculation, measured in $. Starts at 290000 $ so you have a working example on load. Accepted range: 0–5000000 $.
- Amount you need ($)
- The amount you need used in the calculation, measured in $. Starts at 60000 $ so you have a working example on load. Accepted range: 1000–1000000 $.
- Home equity loan rate (fixed) (%)
- The home equity loan rate (fixed) used in the calculation, measured in %. Starts at 8.4 % so you have a working example on load. Accepted range: 1–20 %.
- HELOC rate (variable today) (%)
- The heloc rate (variable today) used in the calculation, measured in %. Starts at 8.9 % so you have a working example on load. Accepted range: 1–20 %.
- Years you'll carry the debt (years)
- The years you'll carry the debt used in the calculation, measured in years. Starts at 10 years so you have a working example on load. Accepted range: 1–30 years.
- Average HELOC balance drawn (% of limit)
- The average heloc balance drawn used in the calculation, measured in % of limit. Starts at 60 % of limit so you have a working example on load. Accepted range: 5–100 % of limit.
Results
- Interest difference between the two
- Returned as a money amount in US dollars and shown as the headline result. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Home equity loan 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.
- HELOC 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.
- Fixed loan monthly payment
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Combined loan-to-value
- Returned as a percentage. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Equity available at 85% CLTV
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
FAQ
Which is safer if rates rise?
The fixed home equity loan. A HELOC repices with prime, and borrowers who drew heavily in a low-rate period have seen payments climb by hundreds of dollars a month.
Why does average drawn balance matter?
A HELOC charges interest only on what is outstanding. If you draw in stages for a renovation, your average balance can be far below the limit, which is where the line beats a lump-sum loan.
What CLTV do lenders allow?
Most cap combined loan-to-value at 80-85%, and pricing worsens as you approach the cap. The tool shows where your request lands.
Is the interest tax deductible?
Only when the proceeds substantially improve the home that secures the loan, and only if you itemize. Debt consolidation and tuition uses do not qualify under current rules.
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
Cite this calculator
Writing about this topic? Grab a citation — every link helps keep these tools free.
RevenueLab. (2026). Home Equity Loan vs HELOC Calculator. Retrieved from https://www.revenuelab.fyi/toolbox/home-equity-loan-vs-heloc-calculator
<p>Source: <a href="https://www.revenuelab.fyi/toolbox/home-equity-loan-vs-heloc-calculator" target="_blank" rel="noopener">Home Equity Loan vs HELOC Calculator — RevenueLab</a> (2026).</p>
Source: [Home Equity Loan vs HELOC Calculator — RevenueLab](https://www.revenuelab.fyi/toolbox/home-equity-loan-vs-heloc-calculator) (2026).