Renovation loan payment calculator
Estimate the monthly payment and total interest on a loan used to fund your renovation — then check how much of the project you recoup at resale.
What this tells you
Enter the loan amount, interest rate (APR), and term, and the calculator works out the fixed monthly payment for a standard amortising loan, plus the total you'll repay and how much of that is interest. Each payment is split between interest on the outstanding balance and a chunk of principal; because the balance shrinks over time, later payments chip away at the principal faster than early ones do.
How term and rate change the cost
The two biggest levers are the term and the rate. A longer term lowers the monthly payment but raises the total interest, because you owe the balance for longer. A higher rate raises both. The table below shows the same $30,000 renovation loan at 8% APR across different terms:
| Term | Monthly payment | Total repaid | Total interest |
|---|---|---|---|
| 3 years | ~$940 | ~$33,850 | ~$3,850 |
| 5 years | ~$608 | ~$36,500 | ~$6,500 |
| 7 years | ~$468 | ~$39,300 | ~$9,300 |
| 10 years | ~$364 | ~$43,700 | ~$13,700 |
Illustrative figures for a $30,000 loan at 8% APR, principal and interest only. Stretching from 5 to 10 years cuts the payment by ~40% but more than doubles the interest.
A worked example
Suppose you borrow $30,000 for a kitchen refresh at 8% APR over 5 years. The monthly payment is about $608, you repay roughly $36,500 in total, and about $6,500 of that is interest. If the same refresh adds $25,000 of resale value, the borrowing cost is modest against the return — but a project that recoups far less would need a harder look before you take on the loan.
Before you borrow
It's worth checking two things first: how much you could borrow against your home (the home-equity calculator), and whether the project earns its keep (the ROI calculator shows how much you recoup at resale). If you're still sizing the budget, the renovation budget calculator suggests a sensible range for your home's value.
Frequently asked questions
How is a renovation loan payment calculated?
A standard renovation loan is amortising: each fixed monthly payment covers the interest due that month plus a slice of the principal. The payment is set so the balance reaches zero at the end of the term. Early payments are mostly interest; later ones are mostly principal.
Does a longer loan term save me money?
No — it lowers the monthly payment but raises the total interest, because you owe the balance for longer. A $30,000 loan at 8% costs about $608/month over 5 years (~$6,500 interest) but about $364/month over 10 years (~$13,700 interest). The longer term more than doubles the interest.
What interest rate will I pay on a renovation loan?
It depends on the product and your credit. Secured options (home-equity loans, HELOCs, cash-out refinances) usually carry lower rates because your home is collateral; unsecured personal loans are higher. Use the home-equity calculator to see how much you could borrow against your home instead.
Should I borrow to renovate, or save up first?
Borrowing makes most sense when the project protects or adds value, the repayments fit comfortably in your budget, and waiting would cost you more (rising prices, or a home you can't sell as-is). Check the project's payback with the ROI calculator before deciding.
What's not included in this estimate?
The calculator shows principal and interest only. Real loans can add origination or arrangement fees, closing costs, and insurance, and variable-rate products can change over time. Always compare the lender's APR and total-cost disclosure, not just the monthly figure.
A standard amortising-loan estimate for planning, showing principal and interest only. Actual rates, fees, and terms vary by lender and credit. Not a loan offer or financial advice. Reviewed July 2026.
Know the return, too
A loan payment is only half the picture — see how much of the project comes back at resale.
Open the ROI calculator →