Home improvement loan calculator
Work out the monthly repayment, total interest and total cost of a personal loan for your home improvement project. See how different loan amounts, rates and terms compare side by side.
Before taking out a personal loan, always check whether the interest rate is fixed for the full term. Most personal loans are fixed rate, which means your monthly payment will not change. But some lenders advertise a headline rate that only a proportion of applicants actually receive. Check the APR you are offered once you apply, not just the advertised rate.
Personal loan vs remortgage
For large projects a further advance on your mortgage or a secured loan may have a lower interest rate than a personal loan. But your home is at risk if you cannot keep up repayments. A personal loan is unsecured and typically faster to arrange.
What APR actually means
APR stands for Annual Percentage Rate. It includes the interest rate plus any mandatory fees, expressed as a yearly figure. It is the number to use when comparing loans because it reflects the true annual cost of borrowing.
Shorter term costs less
A shorter loan term means higher monthly payments but significantly less total interest. A longer term lowers the monthly payment but increases the total cost. The comparison table above shows you the trade-off at a glance.
Does it add value?
Some home improvements add more to your property value than they cost. A loft conversion or kitchen extension often does. Cosmetic work rarely does. Before borrowing, consider whether the project improves your home for you or for a future sale.
Please note: This calculator is for illustrative purposes only. Monthly repayment figures are based on a standard fixed-rate personal loan calculation. Actual rates, fees and terms will vary by lender and depend on your credit profile and circumstances. Always check the full cost of any loan before applying. This is not financial advice. Some links on this page may be affiliate links.
The information on this site is for educational and informational purposes only. Nothing on Be More Peter constitutes financial advice, and nothing should be treated as such. The calculators, articles and tools on this site are designed to help you understand financial concepts and run indicative numbers - they are not a substitute for professional advice tailored to your specific circumstances. Before making any financial decision - including decisions about mortgages, pensions, investments, savings or insurance — you should seek independent financial advice from a qualified adviser who is authorised and regulated by the Financial Conduct Authority (FCA). Calculator results are estimates based on the information you enter and the assumptions built into the tool. They are illustrative only and should not be relied upon as accurate projections. Rates, thresholds and rules change regularly - always verify figures with an appropriate professional or official source before acting on them. Be More Peter is not authorised or regulated by the FCA. The content on this site does not constitute a financial promotion.
What does this calculator do?
The home improvement loan calculator works out the monthly repayment and total interest cost for a personal loan used to fund home improvements. It helps you compare the cost of financing a project against alternatives – such as using savings, adding to your mortgage, or remortgaging.
How to use this calculator
Loan amount: The amount you need to borrow for the project.
Annual interest rate: Personal loan rates currently range from approximately 6% for large loans from the best lenders to 20%+ for smaller amounts or less competitive providers. Always compare before accepting the first offer.
Loan term: The repayment period in months or years. A shorter term means higher monthly payments but less total interest; a longer term means lower monthly payments but more total interest paid.
Reading the result: The calculator shows the monthly payment and the total interest cost over the term. Compare this to the project cost to decide whether financing is appropriate, and compare it to the alternatives of using savings (at the cost of foregone interest) or adding to the mortgage (at a lower rate but over a much longer period).
Should I add home improvements to my mortgage instead?
Adding to the mortgage (through a further advance or remortgage) typically offers a lower interest rate than a personal loan, but spreads the cost over the full mortgage term – which means paying interest for potentially 20 or 25 years on a project that might take five to pay off on a personal loan. The lower rate with a longer term can cost more in total than the higher rate over a shorter term. Run both scenarios through the calculator to compare.
The information on this site is for educational and informational purposes only. Nothing on Be More Peter constitutes financial advice, and nothing should be treated as such. The calculators, articles and tools on this site are designed to help you understand financial concepts and run indicative numbers - they are not a substitute for professional advice tailored to your specific circumstances. Before making any financial decision - including decisions about mortgages, pensions, investments, savings or insurance — you should seek independent financial advice from a qualified adviser who is authorised and regulated by the Financial Conduct Authority (FCA). Calculator results are estimates based on the information you enter and the assumptions built into the tool. They are illustrative only and should not be relied upon as accurate projections. Rates, thresholds and rules change regularly - always verify figures with an appropriate professional or official source before acting on them. Be More Peter is not authorised or regulated by the FCA. The content on this site does not constitute a financial promotion.
Related tools and posts
- Mortgage repayment calculator — cost of adding to your mortgage
- Remortgage calculator — remortgaging to fund improvements
- Home improvement ROI calculator — does the project add more value than it costs?