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HELOC vs Cash-Out Refi Calculator

Cash-out refi resets your entire mortgage to current market rate. HELOC leaves the first mortgage untouched and adds a second at potentially higher variable rate. Which wins depends on your current rate. This calculator compares.

Current mortgage balance

Current mortgage rate

Remaining months on current mortgage

Cash needed

Cash-out refi rate

HELOC rate

HELOC payoff months

Refi closing %

Lower lifetime cost path

HELOC

Lifetime savings

$220,356

Cash-out refi lifetime cost

$731,115

HELOC path lifetime cost

$510,759

Current mortgage lifetime (if kept)

$420,524

How the math works

$280K at 3.5% + $60K HELOC at 8.75% = $660K lifetime. Cash-out refi at 7% with closing = $750K. HELOC wins by $90K because you preserve the 3.5% first-mortgage rate.

Almost always HELOC wins when current rate is > 2% below current market. Only refi if rates have fallen meaningfully or you want rate certainty.

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 HELOC vs Cash-Out Refi Calculator is built to give a quick, browser-based estimate for heloc vs cash-out refi. Cash-out refi resets your entire mortgage to current market rate. HELOC leaves the first mortgage untouched and adds a second at potentially higher variable rate. Which wins depends on your current rate. This calculator compares. 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 heloc vs cash-out refi 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 heloc vs cash-out refi 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 current mortgage balance and rate.
Enter cash-out refi rate, HELOC rate, and cash needed.
See lifetime cost under each path.

Frequently Asked Questions

When does HELOC win?

When current mortgage rate is lower than cash-out refi rate. Locked in at 3% and current cash-out is 7%? HELOC at 8.5% still beats trashing your 3% on the first mortgage.

When does cash-out win?

When your current mortgage rate is near or higher than cash-out rate. Consolidates into one payment at likely lower lifetime cost. Also simpler — one payment, one due date.

What about variable rate risk?

HELOCs are variable. If rates rise, HELOC payment rises. Cash-out refi is fixed (usually) — rate certainty over 30 years. Factor in your rate outlook and risk tolerance.