HELOC vs home equity loan calculator.

Borrow the same amount two ways: a variable-rate HELOC with interest-only years, or a fixed-rate home equity loan. See the monthly payment each way over time, the total interest, what a rate rise would do and the fixed rate where the answer flips. Results show as you type, with no email.

What you need

Both options borrow this amount in full on day one.

HELOC, variable rate

Example rate: the prime rate as of Oct 20, 2026, 7.00%, plus a 1.00% margin; your lender sets the margin. Some lenders waive up-front HELOC costs and others charge appraisal and closing fees.

Adds the points below to the HELOC rate for the whole line, to test a higher average rate.

Home equity loan, fixed rate

Example only. Home equity loan rates are quoted lender by lender, so use the rate you are offered.

Loan term

Example only. A lender lists them on your Loan Estimate. Paid at closing, not added to the loan.

HELOC vs home equity loan

HELOC payment while interest only

$333.33

Home equity loan payment

$492.37

HELOC at 8.00% for the whole line, against 8.50% fixed.

Monthly payment over time
YearsHELOCHome equity loan
Years 1 to 10$333.33$492.37
Years 11 to 15$418.22$492.37
Years 16 to 30$418.22Paid off
Over the life of each
MeasureHELOCHome equity loan
Rate8.00%8.50%
Total interest$90,373$38,627
Closing costs and fees$0$1,000
Total cost$90,373$39,627
Paid off after30 years15 years
Break-even fixed rate, both repaid over 15 years7.81%
Break-even fixed rate on the schedules above17.14%

Borrowing $50,000, the HELOC starts at $333.33 a month, interest only, against $492.37 for the home equity loan. From year 11 the HELOC payment becomes $418.22. On these schedules the HELOC costs about $90,373 in interest and fees and the home equity loan about $39,627, $50,746 less, in part because the HELOC is interest only for 10 years and paid off over 30 years. Repaid over the same 15 years, the fixed loan would cost less only below 7.81%, so at 8.50% it costs more than a HELOC that stays at 8.00%.

See the HELOC payment in detail, read HELOC vs home equity loan, or learn what a home equity loan is.

These figures are estimates for planning only and are not an offer or a quote. Payments are principal and interest, before taxes and insurance. The HELOC is drawn in full on day one and its rate is held at the rate you enter, plus any rise, although HELOC rates usually change. See our disclosures.

How this is calculated

Both options borrow the same amount on the same day. The HELOC follows the usual pattern of interest-only payments while you can draw, then level payments that pay it off. The home equity loan pays the same amount every month for its whole term.

  • HELOC payment while interest only

    amount × HELOC rate ÷ 12

    $50,000 × 8.00% ÷ 12 = $333.33 a month for 10 years. With the rate-rise test on, the rate is your rate plus the points you choose: 2 points gives 10.00% and $416.67.

  • Level payments

    L × i ÷ (1 − (1 + i)−n)

    i is the yearly rate divided by 12 and n the number of months. HELOC repayment: $50,000 at 8.00% over 20 years is $418.22 a month. Home equity loan: $50,000 at 8.50% over 15 years is $492.37.

  • Total cost

    all payments − amount borrowed + closing costs and fees

    HELOC: $333.33 × 120 + $418.22 × 240 − $50,000 = $90,373. Home equity loan: $492.37 × 180 − $50,000 = $38,627, plus $1,000 of closing costs = $39,627.

  • Break-even fixed rate

    the fixed rate where the loan’s interest + closing costs = the HELOC’s interest + fees

    Found by trying rates until the two totals match. Repaid over the same 15 years with no interest-only years, the HELOC at 8.00% costs $36,009 in interest, and the fixed loan matches it at 7.81% once its $1,000 of closing costs are counted. On the schedules above, with the HELOC’s 10 interest-only years and 30-year payoff, the match is at 17.14%.

  • The HELOC is drawn in full. The whole amount is borrowed on day one and only interest is paid during the interest-only years. Drawing in stages, or paying principal early, lowers the HELOC’s cost.
  • One HELOC rate for the whole line. HELOC rates are usually variable and follow an index such as the prime rate. The rate-rise test applies the higher rate from the first month, as a stand-in for a higher average rate.
  • Closing costs paid up front. They count in the total cost but are not added to the loan. Interest is what you pay over each loan’s whole life, with no early payoff.
  • No home value check. Lenders limit how much you can borrow against your home. See how much you could borrow, or the Texas home equity calculator for the 80% rule in Texas.

Sources

  • Federal Reserve, H.15 Selected Interest Rates: bank prime loan rate 7.00%, as of October 20, 2026.
  • CFPB, “What is the difference between a home equity loan and a home equity line of credit?” (last reviewed August 28, 2026).
  • CFPB, “What you should know about home equity lines of credit” (HELOC booklet, October 2022 edition).

Last reviewed October 22, 2026.

Questions about HELOCs and home equity loans

Is a HELOC or a home equity loan cheaper?

It depends on the two rates and on how fast you repay. A HELOC that is interest only for 10 years and then repaid over 20 costs far more interest than a 15-year fixed loan, even at a lower rate, because the balance stays in place longer. Repaid on the same schedule, the one with the lower average rate after fees costs less. This calculator shows both comparisons.

What is the break-even fixed rate?

It is the fixed rate at which the home equity loan, closing costs included, costs the same in total as the HELOC. Below it the fixed loan costs less. This page shows it two ways: with the HELOC repaid over the same years as the loan, which compares the rates alone, and on the schedules you enter, which also counts the HELOC's interest-only years.

How much does my HELOC payment rise if rates go up?

While the line is interest only, each 1 percentage point adds the balance times 1% divided by 12: about $41.67 a month on $50,000. Once repayment starts it depends on the term; on $50,000 repaid over 20 years, 8.00% is $418.22 a month and 9.00% is $449.86. Many HELOC rates follow the prime rate, so they can move up or down.

Can I get a fixed rate on a HELOC?

Some lenders let you lock part of a HELOC balance at a fixed rate during the draw period. The CFPB says the fixed rate on such options is typically higher than the variable rate. A home equity loan fixes the rate on the whole amount at closing.

Do I have to give my email or phone number to see results?

No. This calculator runs in your browser and shows every result as you type. Nothing you enter is sent to LenderMatch. If you later want offers from lenders, the HELOC form is a separate step you choose to take.

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