PWBreadcrumb Tools

Model your renovation costs and equity impact

Renovation Loan Calculator

Calculate the monthly repayment on a renovation loan and see the estimated impact on your property value and home equity. Model any renovation budget against your current property and mortgage.

Enter your details

AU$
AU$
AU$
%

Monthly repayment

$581/mo

Over 10 years at 7%

Loan amount

$50,000

Total interest

$19,665

Cost of borrowing

Total repaid

$69,665

Estimated new value

$885,000

~70% value add rule

Est. equity after reno

$325,000

Combined LTV

63.3%

After renovation

Note: The estimated new property value assumes renovations add approximately 70% of their cost in home value — a conservative industry rule of thumb. Actual value uplift varies significantly by renovation type, property, and location. Kitchen and bathroom renovations typically add more value than structural changes.

How this calculator works

A renovation loan lets you borrow against your existing home equity to fund improvements. The two most common options are a home equity loan (a lump sum at a fixed rate) and a home equity line of credit (HELOC, a revolving line at a variable rate). In some countries, construction loans or renovation-specific products are also available.

This calculator models a standard fixed-rate renovation loan: a specific amount borrowed at a set rate, repaid over a chosen term. It shows your monthly repayment, total interest, and estimated impact on your property value and equity.

The 70% value-add assumption (renovations add approximately 70% of their cost in home value) is a conservative industry benchmark. Kitchen and bathroom renovations typically add more; highly custom or structural renovations can add less. Always get an independent valuation before and after major works.

Worked example

Renovation: AU$60,000 · Home value: AU$600,000 · Existing mortgage: AU$350,000 · Rate: 7.5% · 10-year term
  1. 1Loan amount: AU$60,000
  2. 2Monthly payment: AU$60,000 at 7.5% over 120 months = AU$712/month
  3. 3Total repaid: AU$712 × 120 = AU$85,440 (AU$25,440 interest)
  4. 4Estimated value add: AU$60,000 × 70% = AU$42,000 uplift
  5. 5New home value: AU$600,000 + AU$42,000 = AU$642,000
  6. 6Equity: AU$642,000 − AU$350,000 − AU$60,000 = AU$232,000
  7. 7Combined LTV: (AU$350,000 + AU$60,000) / AU$642,000 = 63.9%
✓ Monthly: AU$712 · Interest cost: AU$25,440 · Est. equity after: AU$232,000 · LTV: 63.9%

Frequently Asked Questions

Related Calculators

Home Loan Repayment Calculator

Calculate your base mortgage payment before adding renovation costs.

Try calculator

Rental Yield Calculator

See how post-renovation rent compares to your updated property value.

Try calculator

Refinance Savings Calculator

Compare a cash-out refinance vs a separate renovation loan.

Try calculator

Disclaimer: Calculations are estimates for general guidance only and do not constitute financial advice. Home loan rates, stamp duty, and LMI costs vary by state, lender, and borrower circumstances. Consult a licensed mortgage broker or financial adviser before making property decisions.