Renovation Loan vs Personal Loan Comparison
Side-by-side: secured renovation loan (lower rate, longer term) vs. unsecured personal loan (higher rate, shorter term).
Result
Personal loan saves total interest
$7,682 difference
Reno payment $382 < personal $728/mo.
- Reno: payment$382.26/mo
- Reno: total paid$68,807
- Reno: total interest$28,807
- Personal: payment$727.68/mo
- Personal: total paid$61,125
- Personal: total interest$21,125
- Cheapest by interestPersonal loan
Step-by-step
- Reno: 8.00% over 15 yr → $382/mo, $28,807 interest.
- Personal: 13.00% over 7 yr → $728/mo, $21,125 interest.
- Difference in total interest: $7,682.
How to use this calculator
- Enter the amount needed.
- Get reno loan quote (HELOC, 203k, or HomeStyle).
- Compare to personal loan offers (LightStream, SoFi, Marcus).
- Look at both monthly cost and total interest.
About this calculator
Renovation loans (FHA 203k, Fannie Mae HomeStyle, or HELOC) are secured by the home, so rates are 5-9% with 10-30 year terms. Personal loans are unsecured at 10-25% APR with 3-7 year terms. The longer term on a reno loan means lower monthly payments but more total interest if rates are similar; lower rates flip that. Personal loans win when amounts are small ($5-15k) and you can pay off in <5 years — the rate premium is small in absolute dollars and you avoid origination + appraisal fees.
Frequently asked
Larger amounts ($25k+) and you intend to pay over many years. The lower rate dwarfs origination costs.
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