Home Improvement Loan Calculator
From loan amount, annual rate and term, compute the amortised monthly payment, total repayment and total interest for a renovation loan.
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At a glance:A home improvement loan is an instalment loan for renovation/repair, usually a fixed-amount personal loan on an amortising basis: fixed monthly payment, interest heavier early, principal heavier later. Monthly payment = loan × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1), r = monthly rate (annual ÷ 12), n = total months (term × 12); total repayment = monthly × n; total interest = total − loan. This is a simplified fixed-rate, on-time model excluding fees and early-repayment penalties; actual APR and payment per the lender.
Formula
Monthly rate r = annual rate ÷ 100 ÷ 12; months n = term × 12.
Monthly payment = loan × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1).
Total repayment = monthly payment × n; total interest = total − loan.
$$\\text{Monthly payment} = \\dfrac{P \\times r \\times (1+r)^{n}}{(1+r)^{n} - 1}$$$$\\text{Total interest} = \\text{Monthly payment} \\times n - P$$How to Use
- Enter the renovation loan amount.
- Enter the annual rate and term.
- View the monthly payment, total repayment and total interest.
Monthly payment, total repayment and interest by amount, rate and term (amortising)
| Loan | Rate | Term | Monthly | Total | Interest |
|---|---|---|---|---|---|
| 200,000 | 6% | 5y | 3,866.56 | 231,993.62 | 31,993.62 |
| 200,000 | 6% | 3y | 6,084.39 | 219,037.95 | 19,037.95 |
| 200,000 | 8% | 5y | 4,055.28 | 243,316.73 | 43,316.73 |
| 300,000 | 6% | 5y | 5,799.84 | 347,990.43 | 47,990.43 |
Case Studies
Case 1: Basic renovation instalment burden
A young couple borrows HK$150,000 for basic renovation (flooring, paint, kitchen/bath), at 5% for 4 years.
Monthly = 150,000 × r × (1+r)^48 ÷ ((1+r)^48 − 1) ≈ HK$3,454.39 (r = 5%/12); 48 months total ≈ HK$165,810.91, interest ≈ HK$15,810.91.
They can fold the renovation into the monthly household budget and borrow within means.
Case 2: Term length and total interest
Another family borrows HK$250,000 for a larger refurbishment at 7%, comparing 3-year vs 6-year terms.
3 years: ~HK$7,719.27/mo, interest ~HK$27,893.87; 6 years: ~HK$4,262.25/mo, interest ~HK$56,882.12. Doubling the term eases the monthly a lot but costs over HK$28,000 more interest — worth it only if cash flow is tight.
FAQ
Personal loan or top-up mortgage for renovation?
A personal renovation loan is fast to approve and unsecured, but rates are usually higher and terms shorter; a mortgage top-up has lower rates and longer terms but more paperwork and uses the property as collateral. Small amounts suit personal loans; large amounts with a property can consider a top-up, comparing total interest.
Does a longer term ease the monthly payment?
Yes. Longer terms lower the monthly payment but extend the interest period, raising total interest. Balance an affordable payment against total cost — don't stretch the term just to cut the monthly.
Does the result match the bank's actual payment?
This tool estimates with a fixed rate and equal payments. Actual payment may differ slightly due to fees, insurance or a different compounding method — use the lender's APR and repayment schedule as final.
Watch the APR, not the monthly flat rate?
Yes, and it is important. Advertised 'monthly flat rate' looks low but converts to a much higher APR, because the flat rate is charged on the original principal and ignores the principal declining monthly. HK banks and finance firms must disclose APR — compare products by APR (including fees) for the true borrowing cost.
Does early repayment save interest, and are there penalties?
Paying off early (full or partial) usually cuts future interest, since interest is on the outstanding principal. But many loans have an early-repayment fee or a minimum term, which may offset part of the saving. Before repaying early, check the contract and compare 'interest saved' vs 'fee/penalty'.
Related Tools
References
Content review: Calculatorism Finance Team. Results are for reference only; please refer to the relevant authorities for the official figures.