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Cash-Out Refinance vs HELOC Calculator

Compare a cash-out refinance to a HELOC for the same cash need. See payment change, first-year cost, and the LTV / CLTV ratios that result from each option.

Property & current mortgage

Property value

Current mortgage balance

Current mortgage rate

Cash needed

Cash-out refi terms

New rate

Term (years)

Closing costs

HELOC terms

HELOC rate

Setup fees

Cash-out refi

$2,411/mo

vs previous $1,170/mo

+$1,242/mo at LTV 67%

HELOC

$708/mo

interest-only on drawn

CLTV 66%

First-year cost difference

$14,152

HELOC saves

Decision framework

Cash-out refi resets your entire mortgage at the new rate — bad if your existing rate is much lower than today's. HELOC adds a second lien at variable rate but leaves your first mortgage alone.

Use cash-out refi when: rates have dropped vs your current mortgage, or you want a fixed payment on the cash for 30 years. Use HELOC when: your existing first mortgage is at a much lower rate than today's, you'll repay the cash quickly, or you want flexibility to draw and pay down repeatedly.

Editorial noteMaintained by EveryCalc - Reviewed June 2026

EveryCalc calculators are designed for fast, practical estimates with transparent inputs and no required account. We use plain formulas, visible assumptions, and related tools so visitors can check the result from more than one angle.

Results are informational only. For financial, tax, legal, medical, construction, or other high-impact decisions, verify the output against primary sources or a qualified professional.

Learn more about our review process on the EveryCalc methodology page.

How this calculator works

What this page estimates

This Cash-Out Refinance vs HELOC Calculator is built to give a quick, browser-based estimate for cash-out refinance vs heloc. Compare a cash-out refinance to a HELOC for the same cash need. See payment change, first-year cost, and the LTV / CLTV ratios that result from each option. The inputs stay on the page during normal use, and the result should be treated as an estimate for planning, comparison, or education rather than professional advice.

Calculation approach

The calculator applies the standard relationship implied by the inputs, then formats the answer so it can be checked and reused. For finance tools, the most important step is using consistent units, rates, time periods, and assumptions before comparing the result with another calculator or outside quote.

Example workflow

For example, start with a realistic value you already know, change one input at a time, and watch how the answer moves. That makes it easier to tell whether the result is being driven by the main amount, the rate, the time period, or a unit conversion.

Practical checks

Use current, real-world numbers when the result affects money, health, tax, or legal decisions.
Run a low, base, and high case when the inputs are estimates.
Check the related calculators below when the next decision depends on a different assumption.

How to interpret the cash-out refinance vs heloc result

Best use

Use the result as a planning number for comparing payments, rates, returns, tax reserves, or cash-flow choices before you request a quote or make a commitment.

Cross-check

Compare the answer with the contract, lender estimate, tax form, brokerage statement, payroll record, or invoice that will control the real-world outcome.

Watch for

Do not rely on a single optimistic rate, return, or fee assumption. Money pages work best when you run low, base, and high cases and keep professional advice separate from the estimate.

This page belongs to the Finance calculator library, so the answer should be read in the context of the decision you are modeling rather than as a universal rule.

Before relying on this cash-out refinance vs heloc estimate

Most calculator mistakes come from the inputs, not the arithmetic. Use this short audit before you reuse the answer in a spreadsheet, quote, application, or important conversation.

Confirm source numbers

Match balances, rates, fees, taxes, income, and payment dates against the lender quote, payroll record, tax form, statement, invoice, or contract.

Separate cash flow from total cost

A lower monthly payment can still cost more over time if fees, interest, taxes, or a longer term are hidden in the structure.

Run conservative cases

Test at least one higher-cost or lower-return case before using the output for a purchase, refinance, investment, loan, or tax decision.

Rerun this page when the rate, price, term, fee, tax rule, income, expense, or expected holding period changes.

How to Use

Enter property value, current mortgage balance, current rate, and the cash you need.
Enter the cash-out refi rate, term, and closing costs.
Enter the HELOC rate and setup fees.
Compare new monthly payments, first-year costs, and resulting LTV/CLTV.

Frequently Asked Questions

Why is cash-out refi more expensive when my current rate is low?

You're not just borrowing the new cash — you're refinancing the entire existing balance at today's rate. If you're at 4% and today's rate is 7%, you give up the great rate on your existing balance just to access the new cash.

When does a HELOC make more sense?

When your existing first mortgage is at a much lower rate than today's, when you'll repay the cash within a few years, or when you want flexibility to draw and pay down repeatedly. HELOCs preserve your low first-mortgage rate.

Are HELOC rates fixed or variable?

Variable for almost all standard HELOCs — usually prime + margin. Some lenders offer fixed-rate conversion options on portions of the balance. Read the disclosure carefully.

What about a home equity loan instead of HELOC?

A home equity loan is a fixed-rate, fixed-term second mortgage. Higher rate than HELOCs typically, but you get payment certainty. Use the HELOC vs Home Equity Loan calculator to compare.