Calculator Inputs
Use the form below to compare your current repayment path with a HELOC based acceleration plan. Living expenses should exclude the debt payments listed here.
This tool is an educational estimate. Real HELOC structures may include variable rates, draw periods, repayment periods, taxes, lender fees, and payment rules not modeled here.
Example Data Table
This sample input set is useful for testing the page quickly after installation.
| Input | Example Value | Purpose |
|---|---|---|
| Mortgage balance | $250,000.00 | Main long term debt to reduce over time. |
| Mortgage APR | 6.25% | Annual rate used for monthly mortgage interest. |
| Mortgage payment | $1,850.00 | Regular scheduled mortgage payment. |
| Other debt balance | $32,000.00 | Higher cost debt that may be reduced by the line. |
| Other debt APR | 18.50% | Annual rate for cards or unsecured debt. |
| Other debt payment | $850.00 | Regular monthly payment on the other debt. |
| HELOC limit / draw / APR | $60,000 / $32,000 / 8.25% | Line size, opening draw, and assumed rate. |
| Income / expenses / extra | $6,800 / $3,100 / $300 | Creates monthly sweep cash for acceleration. |
Formula Used
Monthly interest
Monthly rate = APR ÷ 12 ÷ 100
Interest for month = Current balance × Monthly rate
Balance update
New balance = Old balance + Monthly interest − Payments − Extra principal
Available monthly sweep cash
Sweep cash = Monthly income − Living expenses − Mortgage payment − Other debt payment + Extra monthly cash
Strategy logic
Standard scenario: pay both minimums, then send available extra cash toward other debt first, followed by the mortgage.
HELOC scenario: use the opening draw to reduce debt immediately, attack the HELOC with the sweep cash, and redirect remaining cash to debt after the line is repaid.
How to Use This Calculator
1. Enter the current mortgage balance, rate, and monthly payment.
2. Add any higher interest debt you want to compare against the HELOC strategy.
3. Enter the HELOC limit, intended opening draw, expected rate, and any financed fees.
4. Enter monthly income, living expenses, and any extra cash you regularly send to debt.
5. Choose the simulation horizon, then click Calculate Strategy.
6. Review payoff time, interest totals, estimated savings, and the break even month.
7. Use the CSV and PDF buttons to export the results for planning or discussion.
Frequently Asked Questions
1. What does this calculator compare?
It compares a normal accelerated repayment plan against a simplified HELOC based strategy. Both paths use the same entered debts, rates, payments, income, expenses, and optional extra cash.
2. Does the tool guarantee that a HELOC strategy is better?
No. It only estimates potential payoff speed and interest outcomes under fixed assumptions. Variable HELOC rates, lender rules, fees, and real spending behavior can change the result materially.
3. Why do I need to enter income and expenses?
Those values estimate monthly sweep cash. The model uses that cash to accelerate debt reduction after minimum payments are covered. More free cash generally improves both scenarios.
4. What happens if the initial HELOC draw exceeds my debts?
The calculator caps the effective draw at the total debt entered. A note appears in the results so the model does not borrow more than the balances being targeted.
5. Are financed HELOC fees included?
Yes. Financed fees are added to the starting HELOC balance. The summary also shows a net result after subtracting those fees from the estimated interest savings.
6. What does break even point mean here?
It is the first month where cumulative standard scenario interest becomes greater than cumulative HELOC scenario interest plus financed fees. It helps show when the strategy starts recovering upfront costs.
7. Why might a scenario fail to fully repay within the horizon?
That usually means payments are too small, rates are high, the horizon is short, or extra sweep cash is low. Increase the horizon or adjust inputs to explore different outcomes.
8. Can I use this for advice before opening a HELOC?
Use it as a planning estimate, not final advice. Review the actual line agreement, variable rate terms, fees, risks, and repayment rules with a qualified financial professional first.