Velocity Banking Calculator
HELOC chunking vs straight extra mortgage payments.
Enter your values
Enter the mortgage balance in $.
Enter the mortgage rate in %.
Enter the monthly payment in $.
Enter the heloc rate in %.
Enter the chunk size in $.
Enter the monthly cash surplus in $.
Results update instantly as you type — no submit needed. Your values are remembered on this device, and the shareable link reopens the calculator with exactly these numbers.
- Payoff with surplus
- 171 months (14.3 yrs)
- Payoff without
- 361 months (30.1 yrs)
- Interest saved
- $222,056.75
- Months saved
- 190
- HELOC interest per chunk
- $468.75
- Verdict
- The surplus does the work — the HELOC adds cost, not savings
Working
- 1Each $10,000.00 chunk takes 12.5 months to repay from surplus.
- 2Velocity banking only wins if the HELOC rate is below the mortgage rate.
Quick answer
Velocity banking uses a HELOC to make lump-sum mortgage payments; the savings come almost entirely from the extra cash you apply, not the HELOC itself.
compare amortisation with and without extra payments
At a glance
| What it does | HELOC chunking vs straight extra mortgage payments. |
|---|---|
| Category | Finance |
| Inputs needed | Mortgage balance, Mortgage rate, Monthly payment, HELOC rate, Chunk size, Monthly cash surplus |
| Main output | Payoff with surplus |
| Formula | compare amortisation with and without extra payments |
| Cost | Free — no sign-up, no download |
How to use the Velocity Banking Calculator
- 1Enter your mortgage balance, rate and payment.
- 2Enter the HELOC rate and the chunk size you'd draw.
- 3Enter the monthly cash surplus that repays the chunk.
Inputs explained
- Mortgage balance($)
- Enter the mortgage balance in $.
- Mortgage rate(%)
- Enter the mortgage rate in %.
- Monthly payment($)
- Enter the monthly payment in $.
- HELOC rate(%)
- Enter the heloc rate in %.
- Chunk size($)
- Enter the chunk size in $.
- Monthly cash surplus($)
- Enter the monthly cash surplus in $.
Worked example
Using the values the calculator loads with:
Inputs
- Mortgage balance300000 $
- Mortgage rate6.5 %
- Monthly payment1896 $
- HELOC rate9 %
- Chunk size10000 $
- Monthly cash surplus800 $
Results
- Payoff with surplus171 months (14.3 yrs)
- Payoff without361 months (30.1 yrs)
- Interest saved$222,056.75
- Months saved190
- HELOC interest per chunk$468.75
- VerdictThe surplus does the work — the HELOC adds cost, not savings
- Each $10,000.00 chunk takes 12.5 months to repay from surplus.
- Velocity banking only wins if the HELOC rate is below the mortgage rate.
Frequently asked questions
Does velocity banking actually work?
The payoff acceleration comes from your surplus cash. With a HELOC rate above your mortgage rate, the strategy costs more than paying extra directly.
When is a HELOC chunk worthwhile?
Only when the HELOC rate is meaningfully lower than the mortgage rate and you repay the draw quickly.
What do I need to enter into the Velocity Banking Calculator?
Just 6 values: mortgage balance, mortgage rate, monthly payment, heloc rate, chunk size, monthly cash surplus. Every field starts with a realistic example, so you can change one number at a time and watch the result update instantly.
How does the Velocity Banking Calculator work out the answer?
Velocity banking uses a HELOC to make lump-sum mortgage payments; the savings come almost entirely from the extra cash you apply, not the HELOC itself. It applies the formula compare amortisation with and without extra payments and shows the working so you can check each step by hand.
Is the Velocity Banking Calculator free, and do I need an account?
It is completely free with no sign-up, no download and no usage limit. Everything is calculated in your browser, so the numbers you type never leave your device.
Results are estimates for general information. For medical, legal, structural or financial decisions, confirm with a qualified professional.