Formulas and 2026 figures checked & updated: July 2026
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How to Use the HELOC vs Home Equity Loan Calculator
- Enter the amount you need.
- Enter the fixed loan offer and term.
- Enter a reasonable HELOC rate plus draw and repayment periods.
- Stress-test the HELOC with a higher rate before choosing.
What This Calculator Does
This calculator puts the payment pattern and total interest of two common ways to borrow against home equity side by side.
It highlights payment shock: an interest-only HELOC can have a low draw-period payment followed by a substantially larger repayment payment.
Formula
Fixed payment = P × r(1+r)^n ÷ ((1+r)^n−1); HELOC draw payment = Balance × APR ÷ 12The home equity loan is fully amortized at a fixed APR. The HELOC model assumes the entire balance is drawn immediately, interest-only payments during the draw period, no additional draws, and the entered APR remaining constant before amortization over the repayment period. Actual variable-rate HELOC payments can rise or fall.
Examples
Renovation financing
Borrow $75,000 using a 15-year fixed loan or a HELOC with a 10-year draw and 20-year repayment period.
The results expose both total interest and the HELOC payment change after the draw period.
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Methodology
The home equity loan is fully amortized at a fixed APR. The HELOC model assumes the entire balance is drawn immediately, interest-only payments during the draw period, no additional draws, and the entered APR remaining constant before amortization over the repayment period. Actual variable-rate HELOC payments can rise or fall.
Frequently Asked Questions
Why can the HELOC payment jump?+
During an interest-only draw period you may not reduce principal. When repayment begins, the remaining balance must be amortized over fewer years, and the rate may also have changed.
Does this model future HELOC rate changes?+
It holds the entered HELOC APR constant so the comparison is understandable. Run additional scenarios at higher and lower rates because most HELOCs are variable-rate products.
Are closing costs included?+
No. Add lender fees, appraisal charges, annual fees, early-closure fees, and any fixed-loan closing costs separately when comparing offers.
Is the HELOC vs Home Equity Loan Calculator exact?+
The arithmetic follows the formula shown on this page, but the result is an estimate because real-world rates, fees, taxes, timing, and provider rules can differ. Use the actual figures from your lender, plan, or agency before making a decision.
Does this calculator store my financial information?+
No. The calculation runs in your browser. Saved results remain in local browser storage and are not submitted as an application or professional financial record.
Can I save my results?+
Yes. Use “Save results” to store a snapshot. Without an account it remains in this browser. If you log in, saved scenarios sync securely to your SmartRates account so they are available on your other devices.
How do I share my calculation?+
Click “Share” in the toolbar to copy a link (or open your device’s share sheet). The link encodes your exact inputs, so whoever opens it sees the calculator pre-filled with the same numbers and the same result.
Can I email my calculator results?+
Yes. Click “Email results” to open your default email application with the current inputs, results, and calculator link already included. Review the message and choose the recipient before sending.
Can I export or print my results as a PDF?+
Yes. Click “Export PDF” to open a clean, printable summary of your inputs and results that you can save as a PDF or print. It includes a timestamp and a link back to the calculator.
How accurate are the calculator results?+
The arithmetic follows the formula and assumptions documented on this page. The result is still an estimate because actual rates, fees, taxes, timing conventions, eligibility rules, and provider calculations can differ. Use figures from your official quote, statement, contract, or tax form before making a financial decision.
Which inputs have the biggest effect on the result?+
Rate, time, starting balance, recurring payments or contributions, and fees usually have the largest effects. Change one input at a time to create a conservative, expected, and optimistic scenario instead of relying on a single forecast.
Are taxes, fees, and inflation included?+
Only when they appear as an input or are explicitly described in the methodology. Do not assume an omitted cost is zero. Review the formula and methodology sections to see exactly what is included before comparing the result with an outside quote.
Can this calculator predict future rates or returns?+
No. A calculator projects the assumptions entered; it cannot predict market returns, inflation, variable interest rates, tax-law changes, or provider decisions. Rerun the calculation with several assumptions to understand the range of possible outcomes.
Why might my lender, bank, broker, or tax software show a different result?+
Professional systems may use daily timing, transaction dates, compounding conventions, rounding rules, account-specific fees, credits, eligibility details, or regulations that a general-purpose calculator cannot know. A small difference can be rounding; a large difference usually means an assumption or included cost is different.
Disclaimer: Calculations are for informational purposes only and do not constitute professional financial advice. Please consult with a certified professional before making financial decisions.