Loan Calculators · United States + Canada
Home equity loan closing cost calculator.
Enter the fees from your lender's estimate, see the effective rate over the years you expect to keep the loan, and find how long it takes to break even against a no-cost loan at a higher rate. Runs locally; nothing is transmitted.
Inputs
Result
Fill the form and press Calculate.
How the closing cost comparison works
Closing costs are paid up front, so a loan with fees and a lower rate is competing with a "no-cost" loan at a higher rate. The calculator compares the two over the years you expect to keep the loan. Every fee and both rates are your inputs; nothing is assumed. Combined loan-to-value (CLTV) limits are covered on the home equity loan payment calculator.
Formulas
- Payment: P = L × i(1+i)n / ((1+i)n − 1), with i the annual rate / 12 and n the months.
- Effective rate: the monthly rate j that solves L − fees = P × (1 − (1+j)−m) / j + Bm (1+j)−m, where m is your horizon in months and Bm the loan balance then. Reported as j × 12. This is an APR-style estimate, not the disclosed APR.
- Break-even: the first month where fees + payments + remaining balance on the fee loan is no more than payments + remaining balance on the no-cost loan. Undiscounted.
Worked example
Illustrative inputs: $50,000 over 10 years at 7.5% with $1,950 of fees ($500 appraisal, $600 legal, $300 title, $400 lender, $150 discharge), against a no-cost loan at 8.25%. Payments are $593.51 and $613.26 a month, a difference of $19.75. Net proceeds are $48,050. Break-even is month 77. If you keep the loan 5 years, the no-cost loan costs $316.54 less in total, and the fee loan's effective rate is 8.67% against 8.25%. Held the full 10 years, the effective rate is 8.41%. The undiscounted break-even and the time-value-adjusted rate differ, so a close call is a close call.
What the CFPB says about HELOC fees
The CFPB lists possible HELOC charges: an application fee; origination, appraisal, title, or other closing-cost fees when you open the account; an annual or membership fee; and a cancellation fee for closing early, usually within the first two or three years. Ask the lender which of these apply and whether a cancellation fee would hit you if you pay off early, because that fee changes the break-even.
Sources
- Consumer Financial Protection Bureau: What fees can my lender charge if I take out a HELOC? (page dated June 27, 2024)
- Consumer Financial Protection Bureau: What is a home equity loan?
Sources reviewed September 30, 2026. The payment and present-value formulas are standard loan mathematics and use no external data tables.
Home equity closing cost FAQ
What counts as a closing cost on a home equity loan or HELOC?
The CFPB lists origination, appraisal, title, and other closing-cost fees charged when you open the account, plus possible application, annual, and early-cancellation fees. Enter only the fees your lender's written estimate shows; this calculator has no built-in averages.
What is the effective rate shown here?
It is the annual rate (monthly rate times 12) that equates your net proceeds, the loan amount minus fees, to the payments you make plus any balance repaid at the end of your holding period. It is an APR-style estimate, not the APR your lender must disclose.
How is break-even calculated?
It finds the first month where total cost of the fee option (fees, payments, and remaining balance, less the amount borrowed) is no more than the same cost of the no-cost option at its higher rate. It does not discount for the time value of money.
Why can the break-even look good while the effective rate looks worse?
Break-even adds dollars without discounting, while the effective rate is time-value-adjusted. When the two disagree the choice is close; the effective rate is the stricter test.
Does this work for a HELOC?
Only as an approximation. A HELOC usually has a variable rate and a draw period, while this tool assumes one fixed rate and level payments on a fully drawn balance. Use it to compare fee quotes, then check your lender's actual terms.
Is my information uploaded?
No. The calculation runs in your browser and the values are not sent to TNAADO.
Disclaimer
This educational estimate is not a loan offer or financial advice. Use your lender's Loan Estimate or written fee schedule for actual figures. Your home secures the debt and may be at risk if you do not repay it.