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STWLTH WEALTH
Free Tool

DebtLOC Payoff Simulator

The honest simulator for HELOC / velocity banking strategies. Shows you when it actually helps, when it doesn't, and how small the real benefit typically is vs simple extra payments. Free verdict, premium depth.

Debt Type
Original Loan Amount$350,000

The original mortgage loan amount

Interest Rate6.5%

Your mortgage annual interest rate

Loan Term30 yrs
Years Already Paid5 yrs

How many years you've been paying this mortgage

Remaining Balance: $327,638
Monthly Payment (P&I): $2,212
Remaining Term: 25 yrs
Escrow (taxes & insurance) is not included — it doesn't reduce your debt. Your monthly surplus should already account for escrow.
Line of Credit
LOC Credit Limit$50,000

Maximum amount available on your line of credit

LOC Interest Rate7.5%

Annual interest rate on the line of credit

Monthly Income Surplus$1,000

Your income minus all expenses — the cash available to pay down the LOC each month

Extra Monthly Payment$500

Additional amount paid toward debt principal each month (the direct-extra-payment benchmark)

Chunk Size
LOC chunk size$20,000

Lump sum drawn from the LOC and applied to debt each cycle. Larger chunks pay down debt faster but leave more on the LOC accruing interest. Free tier uses a reasonable default (40% of LOC limit); premium lets you optimize.

Opportunity Cost
Assumed investment return7%

If you invested the monthly surplus instead of accelerating debt payoff, what return would you expect? Default 7% is the historical real return of a diversified stock portfolio. Drives the 'Invest the surplus instead' comparison.

Additional Debts

No additional debts. Add up to 4 more debts to simulate multi-debt payoff.

Rate Schedule

No rate changes scheduled. Add future LOC rate changes to model variable-rate scenarios.

Equity at risk
$49,246
Peak HELOC draw. That much home equity is on the hook during the payoff. A default on this line means foreclosure risk, not just a credit hit.
If HELOC rate rises +2%
+$15,960
Extra interest at 9.5% HELOC vs current 7.5%. HELOCs are variable — your rate can and usually does move.
Invest the surplus instead
$810,072
$1,000/mo at 7% for 25 years — larger than the LOC's interest savings over direct payments ($47,660).
Your HELOC rate (7.5%) is 1.0 percentage point higher than your mortgage rate (6.5%). The strategy only wins when the HELOC's average daily balance stays low enough that the rate premium is offset by faster principal paydown on the higher-interest debt.
Payoff Timeline
Standard25y
Extra Payments16y 5mo
LOC Acceleration12y 7mo
Total Interest
Standard$336,033
Extra Payments$205,709
LOC Acceleration$158,049
LOC: $121,649 debt + $36,400 LOC
Interest Saved
$177,984
vs standard ($130,324 with extra payments alone)
Payoff Race
$0$89K$177K$266K$354K1611162125
StandardExtra PaymentsLOC Acceleration
Payoff Race
PeriodStandardExtra PaymentsLOC Acceleration
1$322K$316K$310K
2$316K$304K$292K
3$310K$290K$272K
4$304K$276K$251K
5$297K$261K$228K
6$289K$245K$204K
7$281K$228K$179K
8$273K$210K$151K
9$264K$191K$122K
10$254K$170K$91K
11$244K$148K$58K
12$233K$124K$21K
13$221K$99K$0
14$208K$72K$0
15$195K$43K$0
16$181K$12K$0
17$165K$0$0
18$149K$0$0
19$132K$0$0
20$113K$0$0
21$93K$0$0
22$72K$0$0
23$50K$0$0
24$26K$0$0
25$0$0$0
MonthDebt BalanceLOC BalancePrincipalDebt InterestLOC InterestCumulative
1$307,093$19,125$546$1,666$125$1,792
2$286,435$38,371$657$1,555$245$3,592
3$285,775$37,611$661$1,552$241$5,384
4$285,110$36,847$664$1,548$236$7,168
5$284,443$36,078$668$1,544$231$8,943
6$283,771$35,304$672$1,541$226$10,710
7$283,096$34,525$675$1,537$221$12,469
8$282,417$33,742$679$1,533$216$14,218
9$281,735$32,953$682$1,530$212$15,960
10$281,048$32,160$686$1,526$207$17,692
11$280,359$31,362$690$1,522$202$19,416
12$279,665$30,558$694$1,519$197$21,132
13$278,967$29,750$697$1,515$192$22,838
14$258,158$49,062$809$1,403$312$24,553
15$257,344$48,369$814$1,398$308$26,258
16$256,526$47,672$818$1,394$303$27,956
17$255,703$46,971$823$1,390$299$29,644
18$254,876$46,266$827$1,385$294$31,324
19$254,044$45,556$832$1,381$290$32,994
20$253,208$44,841$836$1,376$286$34,656
21$252,367$44,122$841$1,372$281$36,308
22$251,522$43,399$845$1,367$277$37,952
23$250,672$42,671$850$1,362$272$39,587
24$249,818$41,939$854$1,358$268$41,212
25$248,959$41,202$859$1,353$263$42,828
26$248,095$40,460$864$1,349$258$44,435
27$247,227$39,714$868$1,344$254$46,032
28$246,354$38,962$873$1,339$249$47,620
29$245,476$38,207$878$1,334$244$49,199
30$244,593$37,446$883$1,330$240$50,768
31$243,706$36,681$887$1,325$235$52,328
32$242,814$35,911$892$1,320$230$53,878
33$241,917$35,136$897$1,315$225$55,418
34$241,015$34,356$902$1,310$220$56,949
35$240,108$33,572$907$1,305$215$58,470
36$239,196$32,782$912$1,301$210$59,981
37$238,280$31,988$917$1,296$206$61,482
38$237,358$31,188$922$1,291$201$62,973
39$236,432$30,384$927$1,286$196$64,454
40$235,500$29,574$932$1,281$190$65,925
41$214,455$48,885$1,045$1,167$311$67,404
42$213,405$48,191$1,051$1,162$306$68,872
43$212,348$47,494$1,056$1,156$302$70,330
44$211,286$46,791$1,062$1,150$298$71,778
45$210,219$46,085$1,068$1,144$293$73,215
46$209,145$45,373$1,074$1,139$289$74,643
47$208,066$44,658$1,079$1,133$284$76,060
48$206,980$43,938$1,085$1,127$280$77,467
49$205,889$43,213$1,091$1,121$275$78,864
50$204,792$42,484$1,097$1,115$271$80,250
51$203,689$41,751$1,103$1,109$266$81,626
52$202,580$41,012$1,109$1,103$262$82,991
53$201,466$40,269$1,115$1,097$257$84,345
54$200,345$39,522$1,121$1,091$252$85,689
55$199,218$38,770$1,127$1,085$248$87,022
56$198,084$38,013$1,133$1,079$243$88,344
57$196,945$37,251$1,139$1,073$238$89,655
58$195,800$36,484$1,145$1,067$234$90,956
59$194,648$35,713$1,152$1,061$229$92,245
60$193,490$34,937$1,158$1,054$224$93,523
61$192,326$34,156$1,164$1,048$219$94,790
62$191,155$33,370$1,170$1,042$214$96,046
63$189,979$32,579$1,177$1,035$209$97,291
64$188,795$31,784$1,183$1,029$204$98,524
65$187,606$30,983$1,190$1,023$199$99,746
66$186,410$30,177$1,196$1,016$194$100,956
67$185,207$29,366$1,203$1,010$189$102,155
68$163,890$48,676$1,317$895$309$103,359
69$162,565$47,981$1,325$888$305$104,552
70$161,234$47,282$1,332$881$301$105,734
71$159,895$46,578$1,339$873$296$106,903
72$158,549$45,870$1,346$866$292$108,062
73$157,195$45,158$1,353$859$288$109,208
74$155,835$44,441$1,361$851$283$110,343
75$154,466$43,719$1,368$844$279$111,465
76$153,091$42,993$1,376$837$274$112,576
77$151,708$42,263$1,383$829$270$113,675
78$150,317$41,528$1,390$822$265$114,761
79$148,919$40,788$1,398$814$260$115,836
80$147,514$40,044$1,406$807$256$116,898
81$146,101$39,295$1,413$799$251$117,948
82$144,680$38,541$1,421$791$246$118,986
83$143,251$37,783$1,429$784$242$120,011
84$141,815$37,020$1,436$776$237$121,024
85$140,371$36,252$1,444$768$232$122,024
86$138,919$35,479$1,452$760$227$123,012
87$137,459$34,702$1,460$752$222$123,987
88$135,991$33,919$1,468$745$218$124,949
89$134,516$33,132$1,476$737$213$125,898
90$133,032$32,339$1,484$729$208$126,835
91$131,541$31,542$1,492$721$203$127,758
92$130,041$30,740$1,500$713$198$128,668
93$128,533$29,933$1,508$704$193$129,565
94$106,909$49,246$1,624$588$313$130,466
95$105,276$48,554$1,633$579$309$131,354
96$103,634$47,859$1,642$570$304$132,229
97$101,983$47,159$1,651$561$300$133,090
98$100,323$46,454$1,660$552$296$133,938
99$98,654$45,746$1,669$543$291$134,773
100$96,976$45,032$1,678$534$287$135,594
101$95,289$44,315$1,687$525$282$136,401
102$93,593$43,592$1,696$516$278$137,195
103$91,888$42,866$1,705$507$273$137,976
104$90,173$42,134$1,715$498$269$138,742
105$88,449$41,399$1,724$488$264$139,495
106$86,716$40,658$1,733$479$260$140,233
107$84,974$39,913$1,743$470$255$140,958
108$83,222$39,163$1,752$460$250$141,668
109$81,460$38,409$1,761$451$246$142,365
110$79,689$37,649$1,771$441$241$143,047
111$77,909$36,886$1,781$432$236$143,714
112$76,119$36,117$1,790$422$231$144,368
113$74,319$35,343$1,800$412$226$145,006
114$72,509$34,565$1,810$403$222$145,630
115$70,690$33,781$1,819$393$217$146,240
116$68,860$32,993$1,829$383$212$146,835
117$67,021$32,200$1,839$373$207$147,414
118$65,172$31,402$1,849$363$202$147,979
119$63,312$30,599$1,859$353$197$148,529
120$61,443$29,791$1,869$343$192$149,064
121$39,455$49,103$1,988$224$312$149,601
122$37,457$48,411$1,999$214$308$150,122
123$35,448$47,714$2,009$203$303$150,628
124$33,427$47,013$2,020$192$299$151,120
125$31,396$46,308$2,031$181$295$151,595
126$29,354$45,598$2,042$170$290$152,056
127$27,301$44,884$2,053$159$286$152,501
128$25,236$44,165$2,064$148$281$152,930
129$23,161$43,442$2,076$137$277$153,343
130$21,074$42,715$2,087$125$272$153,741
131$18,976$41,982$2,098$114$268$154,123
132$16,867$41,246$2,109$103$263$154,489
133$14,746$40,504$2,121$91$259$154,839
134$12,613$39,758$2,132$80$254$155,173
135$10,469$39,007$2,144$68$249$155,490
136$8,314$38,252$2,156$57$245$155,792
137$6,147$37,492$2,167$45$240$156,076
138$3,968$36,727$2,179$33$235$156,345
139$1,777$35,957$2,191$21$230$156,596
140$0$32,970$1,777$10$225$156,832
141$0$29,964$0$0$207$157,038
142$0$26,940$0$0$188$157,226
143$0$23,897$0$0$169$157,395
144$0$20,834$0$0$150$157,545
145$0$17,753$0$0$131$157,675
146$0$14,652$0$0$111$157,787
147$0$11,531$0$0$92$157,878
148$0$8,391$0$0$72$157,951
149$0$5,232$0$0$53$158,003
150$0$2,052$0$0$33$158,036
151$0—$0$0$13$158,049
Year-by-Year Breakdown (LOC Strategy)
PrincipalDebt InterestLOC Interest
1
$280K$21,132
2
$250K$41,212
3
$239K$59,981
4
$207K$77,467
5
$193K$93,523
6
$159K$108,062
7
$142K$121,024
8
$104K$132,229
9
$83K$141,668
10
$61K$149,064
11
$17K$154,489
12
$0$157,545
13
$0$158,049
Year-by-Year Breakdown (LOC Strategy)
LabelPrincipalDebt InterestLOC Interest
17,97418,5732,558
29,84716,7003,380
310,62115,9252,843
412,21614,3313,156
513,49013,0572,999
614,94111,6052,933
716,7349,8133,150
818,1818,3662,839
920,4126,1353,305
1021,7794,7682,627
1124,5771,9703,455
1216,8674062,650
1300504
Strategy Verdict
LOC acceleration pays off your debt 12 years 5 months earlier than standard payments and saves $177,984 in interest. Simple extra payments would save $130,324 — the LOC strategy saves an additional $47,660.
stwlth.com
For informational purposes only. LOC acceleration results depend on your actual LOC terms, spending habits, and cash flow. Consult a financial advisor before restructuring debt. Interest calculations use monthly compounding for installment debts and daily compounding for the line of credit.