Velocity Banking Calculator: Calculate Loan Payoff and Save Interest

Use this velocity banking calculator to determine how you can efficiently pay off your mortgage using the velocity banking strategy.

How To Use The Velocity Banking Calculator

To use the velocity banking calculator, input your loan balance, loan interest rate, current monthly payment, HEQ (Home Equity Line of Credit) credit limit, HEQ interest rate, and additional monthly cash flow. Once all fields are complete, click the “Calculate” button to see the result.

The calculator uses the entered information to determine how much time and interest you can save on your loan by using a HEQ. It takes into consideration the compound interest effect and the additional cash flow in reducing the principal.

How It Calculates

The calculator first determines the interest that you would pay with your current plan by computing the amortization schedule. Then, it calculates the potential savings from velocity banking, where your additional cash flow is used to pay down the principal via the HEQ, and payments are made from the HEQ to the loan.

Results show the new timeline to pay off the debt and the interest saved.


The calculator assumes a fixed interest rate for the loan and HEQ, it does not account for variable rates. It also assumes that the additional cash flow and monthly payments remain constant throughout the term. Market conditions and personal financial changes that may occur are not taken into account.

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