Free Calculator

HELOC vs Cash-Out Refinance Calculator

Enter how much equity you need, the current mortgage, and the two offered rates. The model compares 5-year total cost — including closing costs and the extra interest a cash-out refi loads onto your existing balance.

Equity to tap ($)

HELOC APR (%)

HELOC closing costs ($)

Current mortgage balance ($)

Current mortgage APR (%)

Refi APR (%)

Refi closing costs ($)

Remaining term (years)

HELOC — 5-year total cost

$23000

Interest-only monthly $375

Cash-Out Refi — 5-year incremental cost

$56025

New payment $2073 vs old $1320

5-year winner

HELOC

Saves ~$33025

Estimate only — not an offer or approval decision

Assumptions used

HELOC is priced as an interest-only draw at the entered variable APR for the 5-year comparison window.
Cash-out refi consolidates the current balance plus equity into a new fixed-rate first lien amortized over the remaining term.
Comparison window is the first 60 months; results change over longer horizons.
Closing costs are added to the losing/winning column, not amortized.

Not included in this estimate

Property taxes, insurance, PMI, and HOA dues
HELOC rate resets and draw/repayment phase transitions after year 5
Tax deductibility of mortgage interest
Opportunity cost of the extended mortgage term on a cash-out refi

Real rates, payments, and eligibility depend on the lender or issuer, your credit profile, and current market conditions. Verify current terms directly with the provider before making a financial decision.