Home equity loan payment calculator

A home equity loan can help you get the extra money you need to cover home improvement projects, your kid’s college tuition and more. Use our home equity loan payment calculator to estimate how much it may cost before applying.

How to calculate home equity loan payments

Use this calculator to estimate your home equity loan payment in four steps:

1. Enter your loan amount. This is the amount you want to borrow. If you’re not sure how much you’re eligible for, use our home equity loan and HELOC amount calculator first.
2. Enter your loan term. Home equity loans typically range from 5 to 15 years.
3. Enter your loan’s interest rate. This is the annual interest rate you’ll pay on the loan. Home equity loan rates are between 3.5% and 9.25% on average.
4. Select Calculate Payment. The calculator returns your estimated monthly payment, including principal and interest. Actual payments may vary.

How to calculate HELOC payments

You can also use this calculator to estimate HELOC payments, but it’s only accurate if you plan on making interest-only payments during the draw period — or when you can borrow from your HELOC while only paying interest. The repayment period is when you have to start paying back the principal.

Here’s how to calculate your HELOC payment:

1. For the loan amount. Enter the amount you plan on withdrawing during the draw period. Don’t enter your total credit limit — unless you plan on using the full amount. It’s OK to estimate if you aren’t sure.
2. For the loan term. Enter the length of your repayment period — not your draw period. Most repayment periods for HELOCs range from 10 to 25 years.
3. For the interest rate. Enter your HELOC’s annual percentage rate (APR).

Payments on home equity loans vs. HELOCs

A home equity loan is a lump sum of money with a fixed interest rate, so your monthly payments stay the same for the loan’s lifetime. It’s best if you need a large sum with predictable payments.

A HELOC is a line of credit you can draw from as needed, so your monthly payment fluctuates based on how much you borrow. It’s best if you want the option to borrow small amounts over time.

With most HELOCs, you make interest-only payments during the draw period, but you are free to add to that as you are able. Once the repayment period starts, your loan amount is amortized to include interest and principal so that you can pay it off within the term.

5 ways to get a lower monthly cost

If the estimated monthly payment of your home equity loan or HELOC is higher than you’d like, use our tips to lower it.

1. Boost your credit score. Pay down debt and make on-time payments to help boost your score and lock in a lower interest rate.
2. Shop around for better rates. Even a 1% difference in interest rates can save you hundreds of dollars over a year. Compare your options and consider refinancing if rates drop or your credit score improves.
3. Look for a longer term. Opting for a 15-year loan instead of a 10-year loan can help keep your monthly costs low. But you may pay more in interest overall.
4. Borrow less. If you’re uncomfortable with your estimated monthly payment, look into trimming expenses in your budget or increasing your income to fill in the gaps.
5. Ask for a loan modification. If you’ve already taken out a home equity loan or HELOC, your lender may be willing to adjust your loan details if your loan-to-value (LTV) ratio or credit score has improved. This could be a good option if you don’t want to refinance.

Compare interest rates for home equity loans

Use our tool to get personalized estimated rates from top lenders based on your location and financial details. Select Home Equity Loan, enter your ZIP code, credit score and information about your current home to see your personalized rates.

Written by

Cassidy Horton

Cassidy Horton is a freelance personal finance copywriter and past contributing writer for Finder. Her writing and banking expertise have been featured in Forbes Advisor, Money, The Balance, Money Under 30, Insure.com, and other top digital publishers. She holds a BS in public relations and an MBA from Georgia Southern University. See full profile