Home Improvement Loan Calculator
Compare personal loan, FHA 203k, HELOC, and home equity loan for your next project. See monthly payments, total costs, project ROI data, and after-tax costs side by side.
Complete comparison for a $35,000 project with a 720+ credit score.
| Option | Rate | Term | Monthly | Total Interest | Closing Costs | Time to Fund |
|---|---|---|---|---|---|---|
| Personal Loan | 11.5% | 5 years | $770 | $11,184 | $0–$500 | 1–7 days |
| FHA 203k | 7.3% | 30 years | $1,876 | $400,355 | $4,050 | 30–60 days |
| HELOC | 9.3% (variable) | 10yr draw + 20yr repay | $270 (draw) | $74,308 | $500 | 2–4 weeks |
| Home Equity Loan | 8.8% (fixed) | 15 years | $350 | $27,965 | $1,500 | 2–4 weeks |
True cost of financing your $35,000 project — interest plus all fees.
How to Use the Home Improvement Loan Calculator
Home improvement projects can be financed four different ways, each with different rates, terms, limits, and tax implications. This calculator gives you an instant side-by-side comparison so you can choose the right option for your project.
Quick Calculator
Enter your project cost and credit score range (used to estimate rates). Enter your home equity and home value to determine eligibility for equity-based options. The calculator instantly shows estimated monthly payments for all four financing options: personal loan, FHA 203k, HELOC, and home equity loan.
Advanced: 4-Way Comparison and Project ROI
The 4-Way Comparison tab shows a complete side-by-side table: rate, term, monthly payment, total interest, closing costs, and time to fund. The Project ROI tab shows real-world return on investment data for 12 common improvement projects — so you can see if your project adds value. The Loan Amount Limits tab shows the maximum loan available under each option given your equity.
Pro: Total Cost and Tax Benefits
The Total Cost of Financing tab compares all-in costs including fees, not just interest rates. The Cash-Out Refi Option introduces a 5th option: rolling the improvement into a new mortgage. The Tax Benefits tab shows which options qualify for interest deductions and calculates after-tax costs for each.
Home Improvement Loan Payment Formulas
Max Personal Loan = $50,000
HELOC Interest-Only Payment = Balance × (rate/12)
Max HELOC = Home Equity × 90%
Home Equity Loan Monthly = PMT(rate/12, 180, project cost)
Max HEL = Home Equity × 85%
FHA 203k Monthly = PMT(rate/12, 360, existing balance + renovation amount)
After-Tax Interest Cost = Total Interest × (1 − Marginal Tax Rate)
(Only applicable if used for home improvement — HELOC/HEL only)
Rates shown are estimates based on credit score range. Actual rates depend on lender, LTV ratio, income, and market conditions. Get quotes from at least 3 lenders before making a final decision.
Example: $35,000 Kitchen Remodel — Comparing All Options
Project: $35,000 | Credit Score: 720–749 | Home Equity: $120,000
| Personal Loan (5yr @ 11.5%) | $771/mo | $11,260 total interest |
| FHA 203k (30yr @ 7.25%) | Replaces/combines with mortgage — see calculator |
| HELOC (draw @ 9.25%, variable) | $270/mo interest-only | ~$22,400 total |
| Home Equity Loan (15yr @ 8.75%) | $349/mo | $27,700 total interest |
| Best for speed | Personal loan (1–7 days) |
| Best total interest | Personal loan (if credit is good) |
| Lowest monthly payment | HELOC (interest-only draw period) |
| Best fixed rate | Home equity loan |
| Tax deductible interest (home improvement) | HELOC and HEL qualify |
For a $35,000 kitchen remodel, the home equity loan often wins on balance: competitive fixed rate, fully amortizing (not just interest-only), and the interest is deductible if the project qualifies. The personal loan wins on speed and simplicity if you have strong credit. Avoid the HELOC if you are on a fixed income and cannot handle rate risk.