4 Ways This Calculator Will Help You Choose the Right Home Improvement Loan

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Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality. We sometimes earn a sales commission or advertising fee when recommending various products and services to you. Similar to when you are being sold any product or service, be sure to read the fine print to help you understand what you are buying. Be sure to consult with a licensed professional if you have any concerns. Student Loan Hero is not a lender or investment advisor. We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions. The rates and terms listed on our website are estimates and are subject to change at any time.

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From installing a new roof to remodeling a bathroom, home improvement projects are bound to come up when you’re a homeowner.

According to HomeAdvisor’s 2017 True Cost Survey, the average homeowner spent $5,157 on renovation projects in the past 12 months.

If you don’t have home improvement money set aside in savings, you might take out a loan to cover costs. But before you do, take time to estimate your full cost of borrowing. Our personal loan calculator does the legwork for you so you can make the best choice for your finances.

Personal Loan Calculator

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Here’s how to make the most of this home improvement loan payment calculator so you can turn your fixer-upper into your dream home.

1. Estimate your monthly payments

By using our personal loan calculator above, you can estimate your monthly payments on a loan.

Let’s say you’re deciding between borrowing $2,000 and $5,000 on a three-year repayment term. For the sake of comparison, we’ll say both loans come with an interest rate of 8.00%.

To pay off $2,000 over three years, you’ll be making monthly payments of $63. But to repay a $5,000 loan, you’d have a monthly bill of $157. Depending on your budget, that higher monthly payment might be impossible for you to meet.

By plugging all the numbers into our personal loan calculator, you can make sure you don’t take on a debt that would be too burdensome to pay back. Even though it’s tempting to install granite countertops and stainless steel appliances, for example, you might decide expensive improvements aren’t worth years of high monthly payments.

2. Compare interest rates

Not only does the personal loan calculator estimate your monthly payments, but it also helps you figure out the long-term costs of borrowing by comparing loan interest rates.

To figure out what kind of home improvement loan interest rates you’re looking at, you first have to apply for instant rate quotes with home improvement loan lenders. SoFi and Upstart, for example, let you see preliminary offers before submitting an application.

SoFi’s average home improvement loan rates fall between 5.99% – 17.88%. Meanwhile, Upstart’s home improvement loan rates range from 5.69% – 35.99%.

Ultimately, the rate you get depends on your creditworthiness. Checking your rate won’t affect your credit score so long as it’s a soft credit check. Afterward, you can use the personal loan calculator to compare your offers.

For example, let’s say you’re planning to take out a $4,000 home improvement loan and pay it off over five years. At a 10.00% interest rate, you’d pay $1,099 in interest over the length of your term. But at an 8.00% rate, you’d pay $866.

Just a 2% change in your rate can mean the difference of $233. Instead of wasting that money on interest, you could use it to put the final touches on your Pinterest-worthy bedroom.

That’s why it’s so important to shop around for the best home improvement loan terms before choosing a lender.

3. Consider various home improvement loan terms for repayment

Besides interest rates, the personal loan calculator also helps you compare different home improvement loan terms for repayment.

Most lenders offer repayment terms between three and seven years. If you choose a short term, you’ll pay less interest and be out of debt faster. That said, you’ll have higher monthly payments.

On the flip side, a longer repayment term means you’ll pay more interest overall, but your monthly payments will be more manageable.

Let’s again consider that $4,000 home improvement loan at an 8.00% interest rate. This chart shows your monthly payments and total interest with repayment terms between three and seven years.

Repayment term Estimated monthly payment Total interest you’ll pay
3 years $125 $512
4 years $98 $687
5 years $81 $866
6 years $70 $1,050
7 years $62 $1,237

As you add time to your repayment term, your monthly payment goes down. At the same time, the amount you pay on interest increases.

By crunching the numbers with our personal loan calculator, you can find a repayment term that strikes the best balance for your budget.

4. Don’t forget about extra fees

Although this personal loan calculator gives you an overview of your loan costs, it doesn’t take extra fees into account. Some lenders, for example, charge an origination fee upon disbursement of the loan.

Lending Club, for instance, charges origination fees between 1% and 6% of your total loan amount. If you’re taking out $4,000, that fee comes out to between $40 and $240.

Lenders also charge for things like a late payment or a bounced check. Hopefully, you won’t have to deal with either of these penalties, but they could become an issue if you run into financial hardship.

When choosing a lender, make sure to compare fees along with interest rates so you can find the most affordable option.

Add up the total cost of borrowing for a home improvement loan

Not only can home renovations improve your living space, but they can also increase the value of your home should you ever choose to sell.

However, you want to make sure you’re not sinking too much money into a project that isn’t worth the cost. By using our personal loan calculator and estimating your monthly payments and long-term costs, you can make a smart decision with your finances.

Don’t forget that personal loans aren’t your only option for financing a home remodel. Whether you want to get new cabinets or repaint your house, check out these other useful home improvement loans for funding your next project.

Interested in a personal loan?

LendingTree allows you to compare rates from multiple lenders by filling out one easy form. Advertiser Disclosure

Student Loan Hero Advertiser Disclosure

Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality. We sometimes earn a sales commission or advertising fee when recommending various products and services to you. Similar to when you are being sold any product or service, be sure to read the fine print to help you understand what you are buying. Be sure to consult with a licensed professional if you have any concerns. Student Loan Hero is not a lender or investment advisor. We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions. The rates and terms listed on our website are estimates and are subject to change at any time.

Advertiser Disclosure

Student Loan Hero Advertiser Disclosure

Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality. We sometimes earn a sales commission or advertising fee when recommending various products and services to you. Similar to when you are being sold any product or service, be sure to read the fine print to help you understand what you are buying. Be sure to consult with a licensed professional if you have any concerns. Student Loan Hero is not a lender or investment advisor. We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions. The rates and terms listed on our website are estimates and are subject to change at any time.

RATES (APR)loan amount
5.99% – 17.88%1 $5,000 to $100,000
5.69% – 35.99% $1,000 to $50,000
6.98% – 35.89%* $1,000 to $50,000
99.00% – 199.00%2 $500 to $4,000
5.99% – 24.99%3 $5,000 to $35,000
5.99% – 29.99%4 $7,500 to $40,000
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1 Includes AutoPay discount. Important Disclosures for SoFi.

SoFi Disclosures

  1. Fixed rates from 5.99% APR to 17.88% APR (with AutoPay). Variable rates from 6.49% APR to 14.70% APR (with AutoPay). SoFi rate ranges are current as of November 4, 2019 and are subject to change without notice. Not all rates and amounts available in all states. See Personal Loan eligibility details. Not all applicants qualify for the lowest rate. If approved for a loan, to qualify for the lowest rate, you must have a responsible financial history and meet other conditions. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, years of professional experience, income and other factors. See APR examples and terms. Interest rates on variable rate loans are capped at 14.95%. Lowest variable rate of 6.49% APR assumes current 1-month LIBOR rate of 1.81% plus 3.08% margin minus 0.25% AutoPay discount. For the SoFi variable rate loan, the 1-month LIBOR index will adjust monthly and the loan payment will be re-amortized and may change monthly. APRs for variable rate loans may increase after origination if the LIBOR index increases. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account.
  2. To check the rates and terms you qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull.
    See Consumer Licenses.
  3. Minimum Credit Score: Not all applicants who meet SoFi’s minimum credit score requirements are approved for a personal loan. In addition to meeting SoFi’s minimum eligibility criteria, applicants must also meet other credit and underwriting requirements to qualify.
  4. If you lose your job through no fault of your own, you may apply for Unemployment Protection. SoFi will suspend your monthly SoFi loan payments and provide job placement assistance during your forbearance period. Interest will continue to accrue and will be added to your principal balance at the end of each forbearance period, to the extent permitted by applicable law. Benefits are offered in three month increments, and capped at 12 months, in aggregate, over the life of the loan. To be eligible for this assistance you must provide proof that you have applied for and are eligible for unemployment compensation, and you must actively work with our Career Advisory Group to look for new employment. If the loan is co-signed the unemployment protection applies where both the borrower and cosigner lose their job and meet conditions.
  5. Terms and Conditions Apply: SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet SoFi’s underwriting requirements. Not all borrowers receive the lowest rate. To qualify for the lowest rate, you must have a responsible financial history and meet other conditions. If approved, your actual rate will be within the range of rates listed above and will depend on a variety of factors, including term of loan, a responsible financial history, years of experience, income and other factors. Rates and Terms are subject to change at anytime without notice and are subject to state restrictions. SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income Based Repayment or Income Contingent Repayment or PAYE. Licensed by the Department of Business Oversight under the California Financing Law License No. 6054612. SoFi loans are originated by SoFi Lending Corp., NMLS # 1121636. (www.nmlsconsumeraccess.org)
2 Includes AutoPay discount. Important Disclosures for Opploans.

Opploans Disclosures

Direct Deposit required for payroll.

Opploans currently operates in these states: . *Approval may take longer if additional verification documents are requested. Not all loan requests are approved. Approval and loan terms vary based on credit determination and state law. Applications processed and approved before 7:30 p.m. ET Monday-Friday are typically funded the next business day.

  1. To qualify, a borrower must (i) be a U.S. citizen or permanent resident; (ii) reside in a state where OppLoans operates; (iii) have direct deposit; (iv) meet income requirements; (v) be 18 years of age (19 in Alabama); and, (vi) meet verification standards.
  2. NV Residents: The use of high-interest loans services should be used for short-term financial needs only and not as a long-term financial solution. Customers with credit difficulties should seek credit counseling before entering into any loan transaction.

  3. OppLoans performs no credit checks through the three major credit bureaus Experian, Equifax, or TransUnion. Applicants’ credit scores are provided by Clarity Services, Inc., a credit reporting agency.

  4. Based on customer service ratings on Google and Facebook. Testimonials reflect the individual’s opinion and may not be illustrative of all individual experiences with OppLoans. Check loan reviews.

  5.  

    Rates and terms vary by state.

3 Includes AutoPay discount. Important Disclosures for Payoff.

Payoff Disclosures

  1. All loans are subject to credit review and approval. Your actual rate depends upon credit score, loan amount, loan term, credit usage and history. Currently loans are not offered in: MA, MS, NE, NV, OH, and WV.
4 Important Disclosures for FreedomPlus.

FreedomPlus Disclosures

  1. All loans available through FreedomPlus.com are made by Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC, Equal Housing Lender. All loan and rate terms are subject to eligibility restrictions, application review, credit score, loan amount, loan term, lender approval, and credit usage and history. Eligibility for a loan is not guaranteed. Loans are not available to residents of all states – please call a FreedomPlus representative for further details. The following limitations, in addition to others, shall apply: FreedomPlus does not arrange loans in: (i) Arizona under $10,500; (ii) Massachusetts under $6,500, (iii) Ohio under $5,500, and (iv) Georgia under $3,500. Repayment periods range from 24 to 60 months. The range of APRs on loans made available through FreedomPlus is 5.99% to a maximum of 29.99%. APR. The APR calculation includes all applicable fees, including the loan origination fee. For Example, a four year $20,000 loan with an interest rate of 15.49% and corresponding APR of 18.34% would have an estimated monthly payment of $561.60 and a total cost payable of $7,948.13. To qualify for a 5.99% APR loan, a borrower will need excellent credit on a loan for an amount less than $12,000.00, and with a term equal to 24 months. Adding a co-borrower with sufficient income; using at least eighty-five percent (85%) of the loan proceeds to directly pay off qualifying existing debt; or showing proof of sufficient retirement savings, could help you also qualify for the lowest rate available.
* Important Disclosures for Upgrade Bank.

Upgrade Bank Disclosures

* Personal loans made through Upgrade feature APRs of 6.98%-35.89%. All personal loans have a 1.5% to 6% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. For example, if you receive a $10,000 loan with a 36-month term and a 17.98% APR (which includes a 14.32% yearly interest rate and a 5% one-time origination fee), you would receive $9,500 in your account and would have a required monthly payment of $343.33. Over the life of the loan, your payments would total $12,359.97. The APR on your loan may be higher or lower and your loan offers may not have multiple term lengths available. Actual rate depends on credit score, credit usage history, loan term, and other factors. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. There is no fee or penalty for repaying a loan early. Personal loans issued by WebBank, Member FDIC.

** Accept your loan offer and your funds will be sent to your bank via ACH within one (1) business day of clearing necessary verifications. Availability of the funds is dependent on how quickly your bank processes this transaction. From the time of approval, funds should be available within four (4) business days.