Auto Loan vs Home Equity Loan Calculator
Compare financing a car with an auto loan or a home equity loan. See monthly payments, total interest, fees and total cost side by side, plus how much of your home’s value you would borrow against.
Compare Two Ways to Finance a Car
Enter the amount you need to borrow and the rate, term and fees for each loan. The calculator shows which costs less overall and flags how much of your home’s value the home equity loan would use.
Loan Comparison Calculator
Fixed-rate loans with equal monthly payments.
Understanding the Comparison
What separates these two loans
What Secures the Loan
An auto loan is secured by the car. A home equity loan is secured by your home, so missing payments puts your home at risk.
Rate, Term and Fees
Compare all three. A lower rate can be wiped out by closing costs, and a longer term can lower payments while raising total interest.
Look at Total Cost
A low monthly payment can hide a higher total cost. The calculator adds interest and fees so you can compare the full price of each loan.
Check Your Home Equity
Lenders limit how much you can borrow against your home. The combined loan-to-value shows whether the new loan would stretch you.
Auto Loan vs Home Equity Loan At a Glance
General differences between the two options. Terms and rules vary by lender and country, so check your own offers.
| Feature | Auto Loan | Home Equity Loan | Often Favours |
|---|---|---|---|
| Security | Secured by the vehicle | Secured by your home | Auto loan for lower risk |
| If you default | Car can be repossessed | Home can be foreclosed on | Auto loan |
| Typical term | Usually shorter | Often longer | Depends on your goal |
| Upfront costs | Usually small or none | Often includes closing costs | Auto loan for lower fees |
| Speed to fund | Often quick, sometimes at the dealer | Usually slower, with a home valuation | Auto loan |
| Needs home equity | No | Yes, and limited by loan-to-value | Auto loan if equity is low |
Auto Loan vs Home Equity Loan FAQ
Answers to common questions about financing a car with your home’s equity.
Enter the amount you need to borrow, then the interest rate, term and upfront fees for each loan. The calculator works out the monthly payment, total interest and total cost of both, shows which costs less overall, and estimates your combined loan-to-value if you borrow against your home.
It can lower your interest rate or payment in some cases, but it uses your home as security. If you cannot repay, you risk losing your home, not just the car. Many people choose a standard auto loan to keep the debt secured against the vehicle only.
It depends on the interest rates, loan terms and fees you are offered. A longer home equity term can lower the monthly payment but often increases total interest. Compare total cost, not just the monthly payment.
In the United States, home equity loan interest is generally deductible only when the money is used to buy, build or improve the home that secures the loan, so using it for a car usually does not qualify. Tax rules vary, so check with a tax adviser.
Combined loan-to-value (CLTV) is your mortgage balance plus the new loan, divided by your home’s value. Lenders often limit CLTV for home equity loans, commonly to around 80% to 85%, though limits vary by lender.