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A home improvement loan is a type of personal loan that can be used for home repairs, renovations or improvements. Home improvement loan calculators allow borrowers to estimate the overall cost of borrowing for a home renovation project—including monthly payments and total interest—before applying for a loan. This makes it easier to know how much you should borrow to meet the needs of the project and your budget.
How to Use This Home Improvement Loan Calculator
Home improvement projects can add significant value to your home, but they also can be costly. A home improvement loan is a good way to finance your renovations and spread out payments over time.
Our home improvement loan calculator can help you estimate the total cost of financing your project. Just enter your project budget, the interest rate you’re likely to qualify for and the repayment period. The home improvement loan calculator will show you the total cost of the loan, including monthly payments and interest over time. Here’s what each output means:
- Monthly payment amount. This number is the amount you will pay each month based on the loan parameters you provide. To lower your monthly payment, enter a longer repayment term. Keep in mind that extending the repayment period will increase the total interest paid over the life of the loan. If the monthly payment is outside your budget, you can also lower it by entering a smaller loan amount.
- Estimated total interest. Total interest payments represent the amount you will pay in interest (outside the principal amount) over the life of the loan. The higher the interest rate—and the longer the repayment term—the larger this amount will be.
- Total repayment amount. This represents the total amount you will have paid in principal and interest by the end of the full loan term. If your lender does not charge prepayment penalties, you can also save by paying off the loan early.
Use the home improvement loan calculator below to estimate financing costs for your upcoming home improvements.
Home Improvement Loan Calculator
How Do Home Improvement Loans Work?
Home improvement loan funds can be used for a variety of projects, including home additions, repairs and renovations. This type of financing often comes in the form of an unsecured personal loan, with options available through online lenders, traditional banks and credit unions. However, home improvements also can be financed with a home equity line of credit (HELOC), home equity loan or cash-out refinance.</…….