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HELOC vs Cash-Out Refinance Calculator
Both let you access your home equity — but the right choice depends on your current mortgage rate, how much you need, and how long you'll stay. Compare the true cost of each.
Educational calculators — always consult a licensed professional before making financial decisions.
From your most recent statement.
This is key — a low existing rate changes the cash-out math significantly.
Remaining term on your existing loan.
The amount you want to borrow against your equity.
HELOCs are variable rate, typically Prime + margin. Current rates are around 8–9%.
Current 30-year cash-out refi rates. Typically 0.25–0.5% above regular refi rates.
Typically $3,000–$8,000. HELOCs have little or no closing costs.
Lower Total Cost
HELOC
Saves $359,939 vs. the other option
HELOC vs. Cash-Out Refi
Total Cost Comparison
Key consideration
If your current rate is below 6.875%, a cash-out refi raises your rate on your entire balance — often making a HELOC cheaper even at a higher HELOC rate.
Estimates for educational purposes. HELOC projects 10-year draw + 20-year repayment. Cash-out projects 30-year term. Actual terms vary by lender. Consult a mortgage professional.
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What you'll need
- ·Current mortgage balance, rate, and months remaining
- ·Amount of cash you need to access
- ·HELOC rate quote
- ·Cash-out refi rate quote and estimated closing costs
What you'll get
- ✓Side-by-side monthly payment — HELOC vs cash-out
- ✓Total interest comparison — True cost of each option
- ✓Break-even on closing costs — For cash-out refinance
- ✓Best option verdict — Based on your numbers
How it works
Enter your home equity
Input current home value, mortgage balance, and how much cash you need.
Compare products
HELOC is variable-rate revolving credit; cash-out refi replaces your entire mortgage.
See total cost
Compare closing costs, monthly payments, and break-even timelines for each option.
HELOC vs Cash-Out Refi: $50,000 Needed
| Metric | HELOC | Cash-Out Refi |
|---|---|---|
| Closing costs | $500–$1,500 | $3,000–$6,000 |
| Rate type | Variable (prime + 0.5%) | Fixed 30-year |
| Monthly cost | Interest-only option | Full P&I |
| Best for | Phased projects | Large lump-sum needs |
State guides
How this varies by state
Property taxes, insurance costs, first-time buyer programs, and closing costs differ significantly across states. See local data for your state.
California
Texas
Florida
New York
Illinois
Pennsylvania
Ohio
Georgia
North Carolina
Michigan
New Jersey
Virginia
Washington
Arizona
Colorado
Tennessee
Frequently asked questions
What is the difference between a HELOC and a cash-out refinance?+
A HELOC is a revolving line of credit secured by your home — you borrow what you need, pay interest only during the draw period, then repay over 20 years. A cash-out refinance replaces your entire existing mortgage with a new, larger loan and gives you the difference in cash. Cash-out makes sense if you want one fixed payment; HELOC is more flexible.
When is a HELOC better than a cash-out refinance?+
A HELOC is often better when your current mortgage has a low rate (e.g., 3–4%) — a cash-out refi would force you to refinance your entire balance at today's higher rates. HELOCs also have lower closing costs. They work best for ongoing needs (like home improvement projects) rather than a single lump sum.
When is a cash-out refinance better than a HELOC?+
A cash-out refinance is better when current rates are near or below your existing mortgage rate, since you're refinancing the whole balance anyway. It also makes sense if you want a single predictable payment, need a large lump sum, or plan to stay in the home long enough to recoup closing costs.
How much equity do I need for a HELOC or cash-out refinance?+
Most lenders require at least 15–20% equity remaining after the transaction. With an 85% CLTV limit, if your home is worth $500,000 and you owe $300,000, you have $200,000 equity and could access up to $125,000 (85% of $500K = $425K minus $300K owed). VA cash-out refis can go up to 100% LTV for eligible veterans.
Are HELOC interest rates fixed or variable?+
Most HELOCs have variable rates tied to the prime rate, so your payment fluctuates as rates change. Some lenders offer fixed-rate HELOC options or allow you to lock in a portion of the balance at a fixed rate. Cash-out refinances typically use fixed rates, making them more predictable for budgeting.
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HELOC vs Cash-Out Refinance Calculator is built and maintained by the RealCostIQ editorial team. Cost ranges and rates are checked against published industry data and contractor quotes, and revised when the underlying figures move. Read our data methodology or more about who builds this. Every calculation runs in your browser — no account, and none of your inputs are stored.
Cost ranges and rates here are checked against contractor quotes and published industry data. If a number still looks off, email Support@RealCostIQ.com and we'll review and fix it.