HELOC vs Credit Card calculator
Credit card APRs run well above almost any other way to borrow, and a HELOC secured by your home is usually one of the cheapest. This calculator compares both on the same amount and a real payoff timeline, not a minimum payment that may never actually clear the balance.
- •Over its full 3 year life, the HELOC costs $2,954 in total interest, at 9.5%.
- •Paying off the same $15,000 on a credit card over 3 years at 24.5% costs $6,328.
- •That is a difference of $3,374, in favor of the HELOC.
| Metric | HELOC | Credit card |
|---|---|---|
| Interest rate | 9.5% | 24.5% |
| Monthly payment | $119 then $689 | $592 |
| Payoff horizon | 3 years | 3 years |
| Total interest | $2,954 | $6,328 |
| Total cost, borrowed plus interest | $17,954 | $21,328 |
A HELOC is secured by your home, missing payments puts your home at risk in a way credit card debt does not. Credit card APRs shown here assume a fixed payoff commitment, not the card's minimum payment, which on many cards can take decades to clear a balance and cost far more in interest than shown here. The HELOC total also assumes only the interest only minimum gets paid during those years -- paying extra toward the balance any time during that stretch, which most HELOCs allow, would lower the real total interest paid. Most HELOC lenders do not charge a penalty for paying off the balance early, but terms vary by lender, so it is worth confirming yours rather than assuming.
A free account keeps your numbers ready across every calculator, no re entering them each time.
How this calculator works
- Step 1Enter the amount
An existing card balance, or a purchase you would otherwise put on a card.
- Step 2Enter both rates
Your HELOC rate and your card rate, plus a real payoff commitment for the card.
- Step 3See the real interest gap
Total interest and total cost for each, side by side.
Frequently asked questions
Why does this use a fixed payoff term for the credit card instead of the minimum payment?
A minimum payment alone often barely covers the interest accruing each month, which means the balance can take decades to clear, or never clear at all, at a cost far higher than shown here. A fixed payoff commitment, the same kind of plan this app's Debt Payoff Planner uses, is the only way to make an honest apples to apples comparison against a HELOC.
Is a HELOC always cheaper than credit card debt?
Usually by a wide margin on interest rate alone, credit card APRs commonly run into the twenties while HELOC rates are typically single digits to low teens. The tradeoff is risk, not cost: a HELOC is secured by your home, so missing payments brings a much more serious consequence than missing a credit card payment.
Should I use a HELOC to pay off credit card debt?
It can make sense financially if you have the home equity and can comfortably make the HELOC payments, but it converts unsecured debt into debt secured by your house. This calculator shows the interest math, not whether that tradeoff is right for your situation, that is worth a conversation with a financial advisor.
More home equity calculators
Your available credit line, plus the interest only payment now versus the real payment once repayment starts.
Compare the payment and total interest of borrowing against your home versus an unsecured personal loan.
Two ways to turn home equity into cash, compared side by side on payment and total interest.
Every number on this page is a planning estimate, for informational and educational purposes only, not professional advice.
Before you act on any major decisions, consult a qualified accountant, tax advisor, or financial advisor who knows your full picture.