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HELOC Calculator — Draw Period, Repayment Period & Cash-Out Comparison

Compare a variable-rate HELOC against a full cash-out refinance before you give up a low-rate first mortgage. See the draw-period payment, repayment-period payment, and the side-by-side monthly impact.

Interest-only

Draw-period math

Fixed compare

Cash-out side by side

Equity cap

80% CLTV baseline

Quick read

Keep the cheap first mortgage if you can

If your existing first mortgage is far below today's market rate, replacing it with a cash-out refinance often raises the entire payment stack. This calculator helps you see that tradeoff in dollars, not just in product labels.

Available equity

$150,000

HELOC draw payment

$493/mo

Cash-out payment

$2,090/mo

Inputs

Model your home equity options

Your home

HELOC

Cash-out refinance comparison

HELOC Option

Draw period payment (interest-only)$493/mo
Repayment period payment (P&I)$640/mo
First mortgage payment$1,088/mo
Total during draw period$1,581/mo
Total during repayment$1,728/mo
Available equity (80% CLTV)$150,000

Cash-Out Refi Option

New cash-out loan amount$330,000
New monthly P&I$2,090/mo
Difference vs current first+$1,002
Break-even on closing costsNo break-even in draw phase
Rate given up3.25%

Verdict

HELOC wins

You are preserving a below-market first mortgage while keeping the second-lien draw cost lower than replacing the whole loan.

HELOC savings vs cash-out (draw)+$509
HELOC savings vs cash-out (repayment)+$363

How To Read It

What this comparison is really showing

The draw-period HELOC payment is interest-only. That is why it looks much lighter upfront. The repayment-period payment is the more durable stress test because it shows what happens once principal paydown begins. If that second number feels uncomfortable, the line may be too large even if the draw payment looks easy.

The cash-out refinance side shows the cost of replacing your first mortgage with a larger brand-new loan. That can still make sense if your current first-mortgage rate is high and the new market rate improves the whole structure. It is much harder to justify when your existing first mortgage is already sitting near 3% or 4%.

If you want the strategic framework around these numbers, read the HELOC vs cash-out refinance guide. If you want the full refinance side modeled with break-even and lifetime interest, move into the refinance calculator.

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Questions

HELOC calculator FAQ

How is the draw-period payment calculated?

During the draw period, many HELOCs bill interest only. The basic math is borrowed amount multiplied by the annual rate, divided by 12. On $80,000 at 7.4%, that is about $493 per month.

Why does the repayment payment jump later?

Once the draw period ends, the line usually converts to a fully amortizing payment. You are no longer paying just interest. You are paying principal and interest over the repayment term, which raises the required monthly amount.

When does a cash-out refinance beat a HELOC?

A cash-out refinance becomes more interesting when your current first-mortgage rate is already near or above the market, and you need enough cash that replacing the whole first lien does not create a much worse payment.

How much equity can I usually access?

A common planning cap is 80% combined loan-to-value. Multiply home value by 80%, then subtract your current first-mortgage balance to estimate the available draw.

Should I avoid a HELOC if rates rise?

Not automatically. The main question is whether you can still afford the line if the variable rate moves higher. Many borrowers manage that risk by borrowing less than the maximum and paying principal down faster during the draw period.

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