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Credit Cards & Debt

Home Equity Debt Consolidation Calculator

This calculator is designed to help determine whether using your home equity to consolidate your debt is right for you.

Inputs
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Estimates only. Adjust any value to recalculate instantly.

Results
Interest you could save $6,172 new payment $363.98/mo
New monthly payment $363.98
New total interest $13,678
Current total interest $19,850
New payoff time 10.0 yrs
Total interest compared
Total interest compared Consolidated: $14kCurrent debts: $20k
  • Consolidated $14k
  • Current debts $20k

Home equity rates are low, so the interest saving here is $6,172. The trade-off is real: you convert unsecured debt into debt secured by your home, and a longer term can add interest even at a lower rate.

Consolidated loan amortizationView table
YearPrincipalInterestBalance
1$2,042$2,326$27,958
2$2,211$2,157$25,747
3$2,395$1,973$23,353
4$2,593$1,775$20,760
5$2,809$1,559$17,951
6$3,042$1,326$14,909
7$3,294$1,074$11,615
8$3,567$800$8,048
9$3,864$504$4,184
10$4,184$184$0

How the home equity debt consolidation calculator works

It compares your current high-rate debts against consolidating them into a home equity loan, which typically offers a much lower rate but a longer term — and is secured by your home. It shows the payment, payoff time and interest impact.

Worked example

Worked example: with total debt to consolidate of $30,000, current average rate of 20.00% and current total monthly payment of $750, the home equity debt consolidation calculator shows interest you could save of $6,172.

New monthly payment
$363.98
New total interest
$13,678
Current total interest
$19,850
New payoff time
10.0 yrs

The formula

Current debts amortize at your existing payment; the home equity loan amortizes at its (lower) rate and (longer) term. The comparison is total interest.

Results are estimates for educational purposes and are not financial advice. Confirm exact figures with your lender, plan administrator or advisor.

Frequently asked

Questions about the home equity debt consolidation calculator

Should I use home equity to pay off debt?

The low rate is appealing and can save real interest, but you convert unsecured debt into debt secured by your home — and a longer term may add interest. Weigh both, which the calculator shows.

What is the biggest risk?

Your home. If you cannot repay, a home equity loan puts the house at risk, whereas defaulting on a credit card does not. Only consolidate this way with a solid repayment plan.

Is the interest tax-deductible?

Generally not when the loan is used to pay off consumer debt. Since 2018, home equity interest is deductible only when used to buy, build or improve the home.

Is the Home Equity Debt Consolidation Calculator free to use?

Yes. Every calculator on FinCalculators is completely free, with no sign-up, login or paywall. You can run as many scenarios as you like.

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