Home Improvement Loan Calculator
By BuildFolio Team · Last updated January 28, 2026
Calculate your monthly payment, total interest, and total cost for any home improvement loan. Compare different rates and terms to find the best option.
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TL;DR — Loan Types Compared
Personal loans: Unsecured, 6.5-12% APR, 3-7 year terms, fast approval. HELOCs: Secured by home, 7-9% variable APR, draw period + repayment. Home equity loans: Secured, 6-8% fixed APR, 5-20 year terms, larger amounts. Choose based on project size, timeline, and your home equity.
How to Choose the Right Home Improvement Loan
- Under $25,000: Personal loan is often fastest with no home equity needed
- $25,000-$75,000: Home equity loan or HELOC offers lower rates if you have equity
- Over $75,000: Home equity products or cash-out refinance are most cost-effective
- Emergency repairs: Personal loans approve in 1-3 days vs. 2-6 weeks for equity products
Tips for Homeowners
- Get quotes from your contractor before applying for financing to know the exact amount needed
- Compare at least 3 lenders to find the best rate for your credit profile
- Ask your contractor if they offer built-in financing options, which may have promotional rates
- Factor in contractor payment schedules when choosing between lump-sum loans and lines of credit
Are You a Contractor?
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Frequently Asked Questions
What is a good interest rate for a home improvement loan?
In 2026, good interest rates for home improvement loans range from 6.5-12% for personal loans, 7-9% for HELOCs, and 6-8% for home equity loans. Your rate depends on credit score, loan amount, and term length. Excellent credit (750+) qualifies for the lowest rates.
How much can I borrow for home improvements?
Personal home improvement loans typically range from $5,000 to $100,000. Home equity loans and HELOCs can go higher based on your equity. Most lenders want your total debt-to-income ratio below 43%.