New

HELOC vs. Home Equity Loan Calculator — Which Costs Less?

Borrow the same amount two ways and compare them side by side: a fixed-rate home equity loan versus a variable-rate HELOC. See the monthly payment, total interest, and the payment shock when a HELOC draw period ends.

Quick answer: A HELOC is usually variable and flexible; a home equity loan is usually fixed and predictable. Compare payment shock, draw needs, total interest, and rate risk.

Home Equity Loan — Monthly Payment (Fixed)

$485Fixed for the entire term — no payment shock, no rate risk

Home Equity Loan — Monthly Payment (Fixed)

$485Fixed for the entire term — no payment shock, no rate risk

Home Equity Loan — Total Interest

$37,313

HELOC — Monthly Payment During Draw (Interest-Only)

$354Low and tempting — but pays down none of the balance

HELOC — Monthly Payment After Draw (Stressed Rate)

$537What you pay once interest-only ends and the balance amortizes

HELOC Payment Jump at End of Draw Period

$183The increase from interest-only draw to stressed repayment

HELOC — Estimated Total Interest (Stressed)

$89,214Interest-only draw cost plus amortized repayment interest

Extra Interest With the HELOC vs. the Fixed Loan

$51,902Positive = HELOC costs more under your stress assumption

What to do next

See current HELOC and home equity rates

Your action plan

1
Compare the leading option against your current setup
Compare a fixed-rate home equity loan against a variable-rate HELOC — monthly payment, total interest, and payment-shock risk for the same amount borrowed.
2
Compare the result against current market-rate options
Assumptions change the answer, especially when rates, taxes, or timing matter.
3
Save the result to Money Map or use the linked next action
Turn the result into a prioritized action instead of treating it as a one-off number.

See current HELOC and home equity rates

This is an educational estimate, not tax, legal, investment, or lending advice. Tax rules, rates, and eligibility change and depend on your full situation. Confirm with a qualified professional or the provider before acting.

Calculator action path

Turn this result into a decision

Every SwitchWize calculator connects to a product comparison, rate context, guidance, alerts, and Money Map.

Rate authority hub

Compare

See current HELOC and home equity ratesMove from calculation to current product options.

Rate Trend

Track heloc ratesUse market context before you decide when to act.

Guide

HELOC vs Home Equity Loan vs Cash-Out Refi: Which Home Equity Strategy Wins?HELOC: variable rate, flexible draw. Home equity loan: fixed rate, lump sum. Cash-out refi: replaces your mortgage with a larger one. Here's how to choose the right home equity strategy in 2026.

Money Map

Add this scenario to Money MapTurn the result into a saved opportunity or plan item.

Alert

Create a rate alertWatch the market instead of checking manually.

Today's HELOC rates

Reviewed Jul 6, 2026 · Methodology

Rates shown are representative APRs for illustrative purposes. Actual rates vary significantly by credit score, loan amount, down payment, points paid, property type, state, and lender underwriting. Verify current rates directly with each lender before applying. Ranked using the SwitchWize methodology. SwitchWize may earn a referral fee if you proceed through a link above. Learn more

Frequently Asked Questions

Everything you need to know.

What is the difference between a HELOC and a home equity loan?

A home equity loan is a fixed lump sum repaid at a fixed rate over a set term — the payment never changes. A HELOC is a revolving credit line with a variable rate: you draw funds as needed, usually make interest-only payments during a draw period, then repay the balance over a repayment period. Home equity loans suit a single known expense; HELOCs suit ongoing or uncertain costs.

Which one has a lower monthly payment?

During a HELOC's draw period, the interest-only payment is almost always lower than a home equity loan payment — but it reduces none of your balance. Once the draw period ends, the HELOC payment can exceed the fixed loan payment, especially if rates have risen. Compare the repayment-period payment, not just the draw payment.

What is HELOC payment shock?

Payment shock is the jump in your monthly payment when a HELOC's interest-only draw period ends and the balance begins to amortize as principal plus interest. On a typical line the payment can rise substantially overnight. Because HELOC rates are variable, the jump is larger if the prime rate has increased since you opened the line.

Are HELOC and home equity loan interest rates fixed?

A home equity loan rate is fixed for the life of the loan. A HELOC rate is variable — it is tied to the prime rate plus a margin and moves when the Fed changes rates. Some lenders offer fixed-rate lock options on a portion of a HELOC balance. This calculator lets you stress-test a HELOC rate increase to see the effect.

Should I choose a HELOC or a home equity loan?

Choose a home equity loan when you have a single, known expense and want payment certainty. Choose a HELOC when you need flexible access to funds over time and can absorb rate variability. If total cost is close, weigh the value of the HELOC's flexibility against the certainty of a fixed payment. This is an estimate, not financial advice — confirm terms with lenders.

Is the HELOC vs. Home Equity Loan Calculator — Which Costs Less? free to use?

Yes. SwitchWize calculators are free, and you do not need an account to run scenarios or view the result.

Does using the HELOC vs. Home Equity Loan Calculator — Which Costs Less? affect my credit score?

No. Using a calculator does not trigger a credit check. A credit impact can occur only if you apply directly with a lender, card issuer, or provider.

Are the results personalized financial advice?

No. Calculator outputs are educational estimates based on the inputs you enter. Review assumptions and confirm terms directly with providers before making a financial decision.

What should I do after seeing the result?

Use the recommendation module on this page to see current heloc and home equity rates, or run Money Map to compare this home & mortgage decision with your other opportunities.

How does SwitchWize choose related offers?

Related offers are matched by the calculator surface (heloc) and ranked using SwitchWize data such as rate, fees, trust signals, product fit, and switching friction. Paid relationships do not change organic ranking order.

How fresh are the rates and offers shown?

Rate and offer data is reviewed on a recurring cadence and every offer module shows review context or links to the methodology and disclosure pages.

Where can I see the ranking methodology?

The SwitchWize methodology page explains how rate freshness, editorial review, affiliate disclosure, and category ranking factors work.

Can Money Map use this result?

Yes. Money Map is the broader diagnostic path: it compares savings, mortgage, cards, and debt so you can see whether this calculator result is your highest-impact next move.

Why This Matters

Both tap your home equity, but they behave very differently. A home equity loan is a fixed lump sum at a fixed rate — predictable from day one. A HELOC is a revolving line at a variable rate, with low interest-only payments during the draw period that pay down none of the balance. When the draw period ends, the payment can jump sharply as the full balance amortizes — often at a higher rate than when you started. The flexibility of a HELOC has real value, but so does knowing what it can cost.

How to Use It

1Enter the amount you want to borrow — the calculator uses the same figure for both options
2Set the fixed home equity loan rate and term
3Set today's HELOC rate, the draw period, and the repayment period
4Add a rate-stress assumption to see how a variable HELOC behaves if rates rise
5Compare the monthly payments, the payment shock, and the total interest difference

Find the best account for this goal

Money Map matches your numbers to the strongest available accounts in 90 seconds.

Find the best account

Related calculators

HELOC Payment Calculator Home Equity Calculator Debt Consolidation Router