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HELOC vs Home Equity Loan Calculator
Compare the two most common second-lien borrowing options. See how a HELOC's flexibility and variable rate stack up against a fixed-rate home equity loan on payment, total interest, and closing costs.
Amount to borrow
HELOC (variable rate, flexible draws)
Home equity loan (fixed rate, lump sum)
HELOC
$106,654
total interest + closing costs
Interest-only payment (draw): $385/mo
Amortizing payment (repay): $458/mo
Home equity loan
$41,627
total interest + closing costs
Fixed payment: $492/mo
Term: 180 months
Which is cheaper at these rates?
Home equity loan is projected to cost $65,027 less, with a fixed rate that locks in the payment.
HELOCs have variable rates tied to prime — if rates rise, so does your interest cost. Home equity loans fix the rate and the payment, which is safer but less flexible than a revolving line.
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 Home Equity Loan Calculator is built to give a quick, browser-based estimate for heloc vs home equity loan. Compare the two most common second-lien borrowing options. See how a HELOC's flexibility and variable rate stack up against a fixed-rate home equity loan on payment, total interest, and closing costs. 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 home equity loan 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 home equity loan 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 the amount you want to borrow.
- For the HELOC, enter the current rate, draw period in years, repayment period in years, and any closing costs.
- For the home equity loan, enter the fixed rate, term in years, and closing costs.
- Compare monthly payment (interest-only vs fully amortizing), total interest, and total cost including closing costs.
- Use the HELOC if you need flexible, staged draws and can handle rate movement; use the home equity loan for one lump sum with a predictable payment.
Frequently Asked Questions
What's the main difference between a HELOC and a home equity loan?
A HELOC is a revolving line of credit with a variable rate and a draw-then-repay structure. A home equity loan is a one-time lump sum with a fixed rate and fixed monthly payment. HELOCs are more flexible; home equity loans are more predictable.
Are HELOC rates usually higher or lower than fixed home equity loan rates?
HELOC rates track prime + a margin, and often start below a fixed home equity loan rate — but they adjust as prime moves. Home equity loan rates are higher upfront but locked for the term.
Can I deduct the interest?
Interest on both products is deductible if the funds are used to buy, build, or substantially improve the home securing the loan, subject to IRS mortgage interest limits. Using the funds for other purposes usually breaks the deduction.
Which has lower closing costs?
HELOCs typically have low closing costs (often under $1,000, sometimes zero). Home equity loans resemble a mortgage — expect $1,500–$5,000 in closing costs depending on lender and state.
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