Home Equity Calculators

Loan vs. Line Of Credit Calculator

Compare a standard home equity loan with fixed payments against a flexible home equity line of credit (HELOC) to find the best borrowing option for your needs.

Assumptions

Adjust values

Amount needed Loan term (years) Fixed loan APR Line of credit APR Initial line draw

Fixed loan monthly payment

$702.85

Fixed-loan total interest

$24,342.15

Line-of-credit interest-only payment

$425.00

One-year line interest

$5,100.00

About this tool

Choosing between a traditional Home Equity Loan and a Home Equity Line of Credit (HELOC) can be confusing. This free Loan vs. Line of Credit Calculator helps you compare fixed monthly payments against flexible revolving borrowing, so you can make the smartest financial decision for your upcoming projects. A home equity loan provides a single lump sum of cash with a fixed interest rate and a predictable monthly payment, making it ideal for one-time, well-defined expenses like a major roof repair or debt consolidation. A HELOC, on the other hand, acts more like a credit card: you draw funds only as you need them, usually with a variable interest rate. This flexibility is perfect for ongoing projects where the final cost is uncertain. Use this tool to compare the estimated long-term interest costs and monthly payment obligations of both options side-by-side, helping you confidently choose the right financing strategy for your specific financial situation.

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