Put a future payoff
in today’s perspective.
See how fees and timing change the cost of a lump-sum home equity agreement. Use your own payoff estimate, or explore the illustrative example.
Start with the cash flows.
Change any number. Your entries stay in this page and are not saved or submitted.
Not a quoted interest rate or regulatory APR.
- Usable cash today
- $96,000.00
- Settlement minus usable cash
- $64,000.00
- Monthly reserve to fund settlement
- $2,666.67
Reserve assumes starting from zero, saving for 5 years, and earning no return. It is not a required contract payment.
The math, in plain sight.
Net cash = gross advance − upfront fees.
Annualized scenario cost = (settlement ÷ net cash)1 / years − 1.
The example gives $96,000 usable cash and a $160,000 settlement after five years: approximately 10.76% annualized. Monetary outputs use decimal arithmetic and round to cents.
What this tool assumes.
One initial cash receipt and one final payment. No intermediate payments, taxes, investment returns on the cash, or unentered fees. The payoff is your input; this tool does not calculate a provider’s contract formula or predict home appreciation.
A payoff below net cash gives a negative scenario cost; that is a hypothetical outcome, not evidence it is available. Loans with monthly payments require a full cash-flow comparison. A regulatory APR may use different rules.
Before you compare offers.
Is this a home equity investment quote?
No. The default values are invented for education. Housepiece does not currently offer financing or accept investments.
Does “no monthly payments” mean no financing cost?
A later settlement can exceed the usable cash received today. This tool makes that difference and its timing visible. The full contract determines what would actually be owed.
Can I compare this number directly with a HELOC APR?
Not as a complete comparison. A HELOC can involve monthly payments, changing rates, fees, and a changing balance. You need those dated cash flows and the remaining payoff as well as the applicable APR disclosures.
Do I have to provide my address or email?
No. This calculator runs in your browser. Using it does not create an account or submit a homeowner inquiry.