How to use this calculator
- Cards: what you owe on all cards, their rate and what you pay each month now.
- Loans: the years you want to be debt free in, the HELOC rate and the personal loan's APR (the APR already includes its origination fee).
- Fees: what the HELOC costs to open and each year.
- Results: each option's total cost, interest plus fees, with the monthly payment beside it. The breakdown shows the math.
Why the monthly payment points the wrong way
During a HELOC's draw period you may only have to pay interest, the FTC notes. On $25,000 at 8% (our example for well-qualified borrowers), that is $167 a month, far below the $750 card payment in our example. Whenever the HELOC rate is below the card rate, a comparison of payments alone favors the HELOC. Nothing comes off the balance, though. Paid that way for 10 years and then repaid over 20, the same $25,000 costs $46,936 in interest and fees. Paying the cards off in 3 years at 22.36% takes $959 a month and costs $9,539: the cheaper rate loses by $37,397 because the debt lasts 30 years instead of 3.
The CFPB makes the same point about consolidation loans in general: a lower monthly payment may simply mean a longer payoff, and you may pay a lot more overall. That is why the calculator puts every option on the same clock and compares dollars.
$25,000 of card debt, paid off in 3 to 10 years
Total cost (interest plus fees) of each option, with the calculator's example rates and fees. The card column uses a fixed payment that clears the balance in the time shown.
| Paid off in | Cards | Personal loan | HELOC | HELOC +2 pts |
|---|---|---|---|---|
| 3 years | $9,539 | $4,850 | $4,428 | $5,265 |
| 5 years | $16,736 | $8,291 | $6,790 | $8,246 |
| 7 years | $24,662 | $11,959 | $9,256 | $11,387 |
| 10 years | $37,746 | $17,868 | $13,148 | $16,395 |
| HELOC, interest only 10 yrs, then 20 | $46,936 over 30 years, whatever payoff time you pick | |||
Rates: cards 22.36%, personal loan 11.9% APR (fees included), HELOC 8% (example for well-qualified borrowers) with $1,000 to open and $75 a year. A longer payoff lowers each payment and raises each total. The 10-year personal loan row is for comparison only: Wells Fargo lends for up to 84 months.
HELOC, personal loan or the cards themselves
| Credit cards | Personal loan | HELOC | |
|---|---|---|---|
| What backs the debt | Nothing (unsecured) | Not your home | Your home |
| Rate in this calculator | 22.36%, Fed average | 11.9% APR, Fed average | 8%, example for well-qualified borrowers (prime + 1) |
| Up-front costs | None to keep paying | Origination fee at some lenders, inside the APR | Closing costs and fees unless the lender pays them, sometimes a yearly fee |
| How it ends | When your payments clear it | A set term (12 to 84 months at Wells Fargo) | Draw period, then a repayment period |
Fees differ a lot. Upgrade charges personal loan origination fees of 1.85% to 9.99%, Wells Fargo none; either way the APR includes the fee. A HELOC's APR is based on interest alone, so its closing costs come on top, and the CFPB says they can be hundreds or thousands of dollars. Navy Federal's product page says it pays them, but its terms disclosure says you may pay third-party fees, typically $300 to $2,000 on lines up to $250,000. PNC charges a $299 origination fee on lines under $150,000, may charge title and settlement fees of $450 to $6,593, and $75 a year in the draw period. The calculator starts at $1,000 to open and $75 a year. Closing early can add more: Bank of America charges $450 within 36 months, and PNC pays some third-party fees only if you agree to repay them should you close within three years.
In Texas, a home equity line on your homestead cannot be drawn with a credit card or debit card (Texas Constitution, article XVI, section 50(t)), and Bank of America says it will not use funds from its Texas HELOC to pay off a client's non-homestead debt with the bank, such as a credit card, at closing.
Other ways to consolidate
The CFPB and the FTC also describe balance transfer cards (a promotional rate for a limited time, plus a transfer fee), asking card issuers for a lower rate or payment, and a nonprofit credit counselor's debt management plan, which pays unsecured debts such as cards from one monthly deposit. The calculator covers the loan options only.
Rates used on this page
Card and personal loan rates come from the Federal Reserve's G.19 Consumer Credit release of October 7, 2026, column August 2026 (marked preliminary). For cards we use the rate on accounts assessed interest, 22.36%: it leaves out accounts that were charged no interest. The average over all card accounts was 21.19%. The personal loan rate, 11.9%, is the average of each bank's most common rate on 24-month loans; the Fed reports both as APRs; the calculator applies it to 3 to 10-year payoffs.
The HELOC rate is an example for well-qualified borrowers, not a quote: prime (7% on October 2, 2026, FRED) plus 1 point, as lenders price HELOCs as an index plus a margin. Published ranges run higher: Truist 7.25% to 13.85% APR, Fifth Third 7% to 15.65%. The CFPB warns that if debt problems have hurt your credit score, you probably won't get low rates on a consolidation or home equity loan. The interest-only line uses the same rate.
Next step
To see how large a line your home supports and the payment once the draw period ends, use the HELOC calculator. To check your numbers against the rules lenders publish (combined loan-to-value, credit score, line size), try the HELOC requirements check. If the cards keep growing, a nonprofit credit counselor can review your budget and may offer a debt management plan that does not involve your home.
HELOC debt consolidation questions
Can you use a HELOC to pay down debt?
Yes. You can draw on a HELOC and use the money to pay off credit cards or other loans; the FTC lists a home equity line of credit among the ways to consolidate debt. The debt then sits on your home. What it saves depends on how fast you repay it: $25,000 at 8% (an example for well-qualified borrowers) over 5 years costs $6,790 with fees, against $16,736 on cards at 22.36%.
Source: FTC: How To Get Out of Debt
Is it a bad idea to use a HELOC to consolidate debt?
It can be. The CFPB calls using a home equity loan for credit card debt risky: if you do not repay, you could lose your home. A HELOC's rate is usually variable, and cleared cards can fill up again. Speed matters too: paid interest only for 10 years and then over 20, $25,000 at 8% (an example for well-qualified borrowers) costs $46,936, more than paying the cards off in 5 years ($16,736).
Sources: CFPB: What do I need to know about consolidating my credit card debt?, FTC: Home Equity Loans and Home Equity Lines of Credit
Is it better to use a home equity loan or personal loan to consolidate debt?
Neither is better for everyone. Borrowing against your home may come with a lower rate, the CFPB notes, but the home secures the debt; a personal loan does not. Home equity loans typically have a fixed APR, while HELOCs typically have a variable one, the FTC says. In our example, $25,000 over 5 years costs $6,790 with a HELOC at 8% (an example for well-qualified borrowers) and $8,291 with a personal loan at a 11.9% APR.
Sources: CFPB: What do I need to know about consolidating my credit card debt?, FTC: Home Equity Loans and Home Equity Lines of Credit, Federal Reserve G.19 Consumer Credit
How to pay off $30,000 in debt in 1 year?
You would need about $2,813 a month for 12 months at 22.36%, the Federal Reserve's average card rate for accounts charged interest, and would pay about $3,756 in interest. Most of the payment is principal: $2,500 a month. At 11.9%, a personal loan would take about $2,664 a month and $1,969 in interest.
How much would a $50,000 HELOC cost per month?
At 8% (an example for well-qualified borrowers), about $333 a month while you pay interest only: $50,000 × 8% ÷ 12. Paying it off over 10 years takes about $607 a month, and over 20 years about $418. Interest-only payments do not lower the balance, and HELOC rates are usually variable, so the payment can change.
Source: FTC: Home Equity Loans and Home Equity Lines of Credit
What happens after 10 years on a HELOC?
At Bank of America and TD, the HELOC draw period ends after 10 years: you can no longer borrow, and you repay what you owe, over 20 years at both banks; the FTC notes some plans require the whole balance at once. If you paid interest only, the payment jumps: on $25,000 at 8%, from $167 to $209 a month.
Sources: Bank of America: Home equity assumptions, TD Bank: Home equity, FTC: Home Equity Loans and Home Equity Lines of Credit
Is a HELOC credit card a good idea?
It is convenient, but every purchase on it is borrowed against your home. The FTC notes that some HELOCs let you draw with a credit card connected to the account; the balance is secured by the house and usually has a variable rate. The CFPB notes that many people do not get out of debt by taking on new debt unless they also spend less.
Sources: FTC: Home Equity Loans and Home Equity Lines of Credit, CFPB: What do I need to know about consolidating my credit card debt?
How much will I pay monthly on a $50,000 debt consolidation loan?
At 11.9%, the Federal Reserve's average rate on 24-month personal loans at banks (August 2026), about $1,110 a month over 5 years or $1,658 over 3 years. Your rate depends on your credit, the amount and the term. An APR already includes any origination fee, so use the APR from your offer to estimate the payment.
Sources: Federal Reserve G.19 Consumer Credit, Wells Fargo: Personal loans
What is a debt consolidation loan?
It is one new loan that pays off several debts, leaving one monthly payment. The FTC lists a second mortgage, a home equity line of credit or a personal loan from a bank or finance company as ways to do it. A lower payment can come from a longer term, and the CFPB warns that this can mean paying a lot more overall.
Sources: FTC: How To Get Out of Debt, CFPB: What do I need to know about consolidating my credit card debt?
Sources
- Federal Reserve: G.19 Consumer Credit, release of October 7, 2026 - credit card and 24-month personal loan rates
- FRED: Credit card rate, accounts assessed interest (TERMCBCCINTNS) - cross-check
- FRED: 24-month personal loan rate (TERMCBPER24NS) - cross-check
- FRED: Bank prime loan rate (DPRIME) - HELOC example rate
- CFPB: What do I need to know about consolidating my credit card debt?
- FTC: Home Equity Loans and Home Equity Lines of Credit
- FTC: How To Get Out of Debt
- IRS Publication 936, Home Mortgage Interest Deduction
- PNC: Home equity line of credit early disclosures - HELOC fees
- Navy Federal: HELOC important terms - third-party fees
- Bank of America: Home equity assumptions - draw and repayment periods, early closure fee, Texas
- Truist: Home equity line of credit - rate range
- Fifth Third: Equity Flexline - rate range
- Texas Constitution, article XVI, section 50
- Public Law 119-21, section 70108
- TD Bank: Home equity - interest-only draw period
- Upgrade: Personal loans - origination fee, APR
- Wells Fargo: Personal loans - no origination fee
More calculators
Calculators
- HELOC calculatorYour HELOC limit, the interest-only payment and the payment after the draw period ends.
- Home equity calculatorYour equity in dollars and percent, LTV and CLTV, and how much you may borrow at 80%, 85% and 90% caps.
- Home equity loan calculatorYour fixed monthly payment, total interest and estimated maximum loan, next to a HELOC on the same amount.
- Cash-out refi vs. HELOCKeep your mortgage and add a HELOC, or refinance for cash: which costs less over the years you choose.
- Compare home equity optionsHELOC, home equity loan, cash-out refi, home equity investment, 401(k) loan: what each costs for your cash and timeline.
- Home equity investmentWhat a shared-equity deal really costs: your payback, the total cost and the cost a year, next to a loan.
- HELOC requirementsWhich lenders' published HELOC rules your numbers meet: CLTV cap, credit score, line amount, state and property.
- HELOC payoff calculatorYour payment when the draw period ends and how extra payments shorten the payoff.
- Texas HELOC calculatorYour Texas HELOC limit under the 80% homestead rule, the payment and the Texas rules that apply.
Guides with a calculator
- Is HELOC interest deductible?When HELOC interest is tax deductible and what it saves above the standard deduction in 2025 or 2026.
- HELOC on a rental or second homeBorrowing against a rental or second home, or against your home to buy one: line, payments, rent and lenders.
- HELOC for home improvementYour renovation budget with a cushion, whether it fits your line, and the interest and payment as you draw.