Home Renovation Loan Calculator

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Have big plans for your home? Use this free home renovation loan calculator to find the best rate and term for you.

A home renovation loan can help make your dream space a reality.

But before you start drafting up the plans, it's important to figure out your financing.

With this calculator you'll know:

  1. How much your monthly loan payment will be
  2. How many months you'll be paying off your loan
  3. How much you'll pay in total, including interest

In this guide, you'll also learn about other funding options, how much you can borrow, and more.

How to Calculate Home Renovation Loan

Home Renovation Loan Calculator

With our calculator, you'll know exactly how much your home renovation loan payments will be. Here's how to use it:

  1. Enter the loan amount that you want to borrow.

  2. Enter interest rate that the lender will charge on the loan.

  3. Enter term (years) that you'll be paying back the loan.

Once you hit "Calculate", you'll see your loan repayment mapped out with different graphs. Make sure you can commit to the payments each month. Otherwise, you risk loan default.

How much can I borrow to remodel my house?

How much you can borrow for a home renovation depends on where your funding comes from. Here's what you can expect:

  • Home improvement loan (personal loan):
    Between $3,000 and $50,000

  • Home equity loan:
    Up to 85% of the appraised value of your home[1]

  • Home equity line of credit:
    Up to 85% of the appraised value of your home[1]

  • Mortgage refinance:
    85% - 90% of the value of your home (depends on lender)

  • Credit card:
    Between $1,000 and $25,000 (depends on card and credit history)

What credit score do you need to get a renovation loan?

The minimum credit score you need to get a home renovation loan will be between 650 and 700.

The exact score you need will depend on a few factors:

  • Where you borrow money from
  • How much money you will borrow
  • The terms of your loan

The average interest rate for a home renovation loan is around 12%.

How do you fund a renovation?

You have several options to fund your home renovations. Here are the most common ways that people pay for a remodel:

Home improvement loans (personal loans): A personal loan can be used for many things, including home renovations. You get a set amount of funds with a specific repayment term and, usually, a fixed interest rate.

Choose a personal loan if: You want to borrow a smaller amount, have good credit, and can secure an interest rate less than 12%.

Home equity loan: This is also called a second mortgage. You borrow a certain amount of money for your renovations, with a fixed interest rate and monthly payments.

Choose a home equity loan if: You need a large amount upfront and a fixed interest rate

Home equity line of credit (HELOC): This is a line of credit that is secured by the value of your home equity. It works sort of like a credit card: you can spend the funds however you like over a fixed amount of time.

Choose a home equity line of credit if: You're doing smaller projects over a longer period of time, or aren't sure how much you need for your renovations.

Mortgage refinance: This option gives you funds by adjusting the terms and interest rates of your current mortgage. The equity you have in your home will be decreased, but you may be able to reduce your monthly payments.

Choose a mortgage refinance if: You're not sure you can get a competitive rate on a loan or you want to adjust your monthly mortgage payments

Credit card: Many cards offer 0% APR promotions for several months, and many offer sign up bonuses. You might do this if your renovations are smaller and you have a good history with credit cards.

Choose a credit card if: You know you can pay off the full renovation amount before the 0% APR period ends.

Should you get a loan to renovate your home?

New home improvements can be exciting! But first, make sure you can afford to pay your home renovation loan.

Here's what you want to consider:

Fees: Check to make sure your loan doesn't come with high fees. Even if it has a competitive interest rate, fees can easily cancel out your savings.

Interest rate: You probably want the loan with the lowest APR you can find. This may mean the installments are higher, but you're less likely to overpay on interest.

Repayment term: If possible, choose a repayment term as short as possible. You'll pay less in interest overall.

Penalties: Do you plan on paying your loan back early? Make sure the lender doesn't penalize you for early repayment.

Bottom Line

Renovations go a long way in turning a house into a home. Once you have a general plan of what you want to do, it's time to investigate your funding options and determine which makes the most sense for you.

Be sure to consider your project length and overall cost. A home equity line of credit is better for small projects over time, while home equity loans or personal loans are better for big projects with a high upfront cost.


  1. ^ "Home Equity Loans and Credit Lines": FTC Consumer Information, 2021.

Holly Zorbas is a assistant editor at CreditDonkey, a mortgage comparison and reviews website. Write to Holly Zorbas at holly.zorbas@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.

Note: This website is made possible through financial relationships with some of the products and services mentioned on this site. We may receive compensation if you shop through links in our content. You do not have to use our links, but you help support CreditDonkey if you do.

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