HELOC vs credit-card payoff calculator
Credit cards often carry APRs well above 20%. A HELOC typically charges a lower rate, which can cut the total interest you pay to retire the same balance over the same term. Enter your own numbers below to see the illustrative difference.
Total interest — credit card: $3,749
Total interest — HELOC: $1,448
Illustrative interest saving with HELOC: $2,301
Illustrative estimate only — not an offer to lend. Rates are variable.
How it's calculated
This tool compares paying down debt with a HELOC versus a credit card. It contrasts the higher card APR — often near 20% — with a typical lower HELOC rate, then estimates the total interest and payoff time for each. A lower rate generally means less interest and faster payoff for the same payment. Because a HELOC is secured by your home, the tool frames cost alongside that added risk.
Frequently asked questions
Is a HELOC cheaper than paying off a credit card directly?
Usually a HELOC's rate is lower — often single digits versus card APRs near 20% — so the same payment retires the balance faster with less interest. But a HELOC is secured by your home, so the lower cost comes with more risk than unsecured card debt.
How much faster can I pay off debt with a HELOC?
Because more of each payment goes to principal at a lower rate, payoff can be noticeably faster for the same monthly amount. The exact difference depends on your balances and rates, so the comparison here is illustrative rather than a guaranteed timeline.