Velocity banking uses a line of credit, usually a HELOC, as the hub of your cash flow. Your paycheck goes into the line, which lowers the balance interest is calculated on each day. You then use the line to make large principal payments on your mortgage, called chunks, and rebuild the line with your monthly surplus.
Whether it saves you money depends on your mortgage rate, your HELOC rate, and how much positive cash flow you have every month. That is exactly what the calculator tests.
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Velocity banking is a cash-flow strategy that uses a line of credit, usually a HELOC, as your main account. Your income goes into the line, which lowers the average daily balance that interest is charged on. You then use the line to make large principal payments ("chunks") on your mortgage. Done well, it can reduce total interest and shorten the loan.
It can, but only under specific conditions: steady positive monthly cash flow, disciplined spending, and a HELOC rate you can live with. It is not a shortcut, it does not remove debt by itself, and a variable HELOC rate can change your results. That is why we model your real numbers instead of promising a fixed outcome.
You enter your mortgage balance, rate and payment, your HELOC limit and rate, and your monthly income and expenses. The calculator simulates the chunking method month by month and compares it with a standard payoff, showing an estimated payoff date and interest difference.
The math is ordinary banking mechanics, so it is not a scam. The bad reputation comes from expensive courses that oversell it. You do not need to buy a course to run the numbers. Results are estimates, not financial advice, and you should talk to a qualified professional before opening a HELOC.
Built by Werner Jacob. Read more on the Velocity Mortgage blog.