Home Equity / Renovation Financing Calculator

Compare HELOC, home equity loan, and cash-out refinance options to find the best way to finance your home renovation project.

Home Value ($)

Current Mortgage Balance ($)

Renovation Cost ($)

HELOC Rate (%)

Draw Period (years)

Repayment Period (years)

Available Equity (80% LTV)

$120,000.00

Sufficient for renovation

Monthly Payment

$354.17

Interest-only for 10 yr, then $433.91/mo for 20 yr

Total Interest Paid

$96,638.79

Total cost: $146,638.79

Cost Comparison Across Financing Types

Purchase Option	Quantity	Est. Cost
HELOC	$354.17/mo	$96,638.79
Home Equity LoanBest value	$433.91/mo	$54,138.79
Cash-Out Refi	$1,580.17/mo	$318,861.22

Home Equity Loan has the lowest total interest: $54,138.79A home equity loan gives you a fixed rate and predictable $433.91/month payment. This is often the simplest option for a defined renovation budget.

Tax deductibility of interestInterest on home equity debt may be tax-deductible if the funds are used to buy, build, or substantially improve the home securing the loan (IRS rules, post-2017 TCJA). This can effectively lower the cost of financing your renovation. Consult a tax professional to confirm your eligibility.

This calculator provides estimates for educational purposes only. Actual rates, terms, fees, and qualification requirements vary by lender and market conditions. HELOC rates are typically variable and may change. Always consult with a licensed mortgage professional before making financing decisions.