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
Monthly repayment
$568/mo
Over 10 years at 6.5%
Loan amount
$50,000
Total interest
$18,129
Cost of borrowing
Total repaid
$68,129
Estimated new value
$735,000
~70% value add rule
Est. equity after reno
$265,000
Combined LTV
64.0%
After renovation
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
- 1Loan amount: CA$60,000
- 2Monthly payment: CA$60,000 at 7.5% over 120 months = CA$712/month
- 3Total repaid: CA$712 × 120 = CA$85,440 (CA$25,440 interest)
- 4Estimated value add: CA$60,000 × 70% = CA$42,000 uplift
- 5New home value: CA$600,000 + CA$42,000 = CA$642,000
- 6Equity: CA$642,000 − CA$350,000 − CA$60,000 = CA$232,000
- 7Combined LTV: (CA$350,000 + CA$60,000) / CA$642,000 = 63.9%
Frequently Asked Questions
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Try calculatorDisclaimer: Calculations are estimates for informational purposes only and do not constitute financial advice. Mortgage rules, taxes, and CMHC insurance requirements vary by province. Consult a licensed mortgage broker before making financial decisions.