Credit Card vs HELOC Calculator

High credit card rates are the single most expensive consumer debt. A HELOC or home equity loan can cut that rate in half — saving thousands. This calculator compares payoff timing and total interest across the two structures.

Credit card balance

Credit card APR

HELOC rate

HELOC closing costs

Monthly payment available

Net interest saved (after costs)

$9,220

Months saved

1 yr 2 mo

Credit card total interest

$13,010

HELOC total interest + costs

$3,790

How the math works

Rolling high-rate credit card debt into a HELOC at half the rate usually saves thousands over the payoff period. But HELOCs are secured by the home — default risks foreclosure. Only use if you've stopped the credit card spending; otherwise you end up with both balances.

HELOC rates are typically variable (prime + margin). In a rising-rate environment, the advantage narrows. Consider a fixed-rate home equity loan for locked payments, or tackle the consolidation with a 0% balance transfer card for smaller balances.

How to Use

Enter credit card balance and APR.
Enter HELOC rate (typically prime + 0-3%).
Enter HELOC closing costs (often $0-500 for small lines).
Enter monthly payment available for either path.

Frequently Asked Questions

Is HELOC consolidation a good idea?

Usually yes on the math — typical savings $3-8k on a $20k credit card balance. But only if you've addressed the root spending behavior. Consolidating without behavior change often leads to both balances running up.

What if I can't qualify for a HELOC?

Alternative: 0% balance transfer credit cards (12-21 months). Requires good credit to qualify for the offer. Personal loans at 10-15% also beat credit card APRs significantly.

Does HELOC interest stay deductible?

Only if proceeds are used to buy, build, or substantially improve the home. Debt consolidation usage doesn't qualify for the deduction. Math it out after-tax accordingly.