Unsecured home improvement loans are personal loans – fast, but with higher rates than a HELOC or home equity loan. Origination fees of 1–8% are taken from the money you receive, which raises the real APR.
How to use the Home Improvement Loan Calculator
- Loan amount
- Interest rate (APR)
- Loan term
- Origination fee (% of loan)
Results update as you type, and every field accepts the units shown in its menu.
How it works
Enter the loan amount, interest rate and term and the origination fee.
Tips
- Compare loans by APR and total cost, not just the monthly payment.
- Extra payments go straight to principal and can save a lot of interest.
- Pay off the highest-rate debt first if you want to save the most money.
- Check for prepayment penalties before paying a loan off early.
Common mistakes to avoid
- Stretching a loan term to lower the payment without seeing the extra interest.
- Paying only the minimum on credit cards.
- Forgetting fees that are rolled into the loan.
Inputs explained
| Field | What to enter |
|---|---|
| Loan amount | Amount in your currency |
| Interest rate (APR) | In % |
| Loan term | Units: years, months |
| Origination fee (% of loan) | In % |
What each result means
- Monthly payment = pmt([Interest rate (APR)]÷1200, [Loan term], [Loan amount])
- Total interest = [Monthly payment]×[Loan term] – [Loan amount]
- Total of all payments = [Monthly payment]×[Loan term]
- Origination fee = [Loan amount]×[Origination fee (% of loan)]÷100
- Money you receive = [Loan amount] – [Origination fee]
- Real APR including the fee = rate([Loan term], 0 – [Monthly payment], [Loan amount] – [Origination fee])×1200
Example values
How the main result changes when Loan amount changes and everything else stays at the example values above:
| Loan amount | Monthly payment |
|---|---|
| 12,500 | 259.48 |
| 18,750 | 389.22 |
| 25,000 | 518.96 |
| 31,250 | 648.7 |
| 37,500 | 778.44 |
| 50,000 | 1,037.92 |
Formula
Monthly payment = L × i ÷ (1 − (1 + i)^−n), i = APR ÷ 12, n = monthsTotal interest = payment × n − LAPR with fees: the rate at which (L − fee) equals the present value of the paymentsWorked example
Inputs — Loan amount: $25,000; Interest rate (APR): 9 %; Loan term: 5 years; Origination fee (% of loan): 3 %.
Results — Monthly payment = $518.96; Total interest = $6,137.53; Total of all payments = $31,137.53; Origination fee = $750.00; Money you receive = $24,250.00; Real APR including the fee = 10.311 %.
Frequently asked questions
What is the best way to finance home improvements?
A HELOC or home equity loan is cheapest; personal loans are fastest.
Are home improvement loans tax-deductible?
Only if secured by your home and used to improve it.
What credit score do I need?
Usually 660+ for good personal-loan rates.
What formula does the Home Improvement Loan Calculator use?
Monthly payment = L × i ÷ (1 − (1 + i)^−n), i = APR ÷ 12, n = months.