Renovation Loan Payment Calculator

Plan Financing for Your Remodel

Renovation loans make it possible to tackle larger projects without draining your savings, but they also introduce monthly obligations that must fit your household budget. This calculator estimates your principal and interest payment using the standard amortization formula and then layers in any recurring fees required by the lender, such as inspection charges or construction draw fees. You can also account for origination or closing costs that are rolled into the loan balance, giving you a comprehensive picture of the total debt service.

Use the results to map out cash flow during the renovation period. Knowing the full monthly obligation, total interest paid, and combined lifetime cost helps you compare loan offers, evaluate the impact of buying points, or decide whether to shorten the term for faster payoff. Adjust the interest rate and fees to explore best- and worst-case scenarios before committing to a lender.

After calculating, scan the table to see how each component drives the monthly payment and overall cost. Track how much of each installment services the debt versus covers lender fees, and note the long-term interest burden relative to the amount borrowed. Reviewing these figures alongside your project budget can clarify whether you should phase work, renegotiate contractor draws, or explore alternative financing options such as HELOCs or cash-out refinancing.