Home Equity Loan Calculator for Drawing and Repaying
This home equity loan calculator shows what your monthly payments could look like on a loan secured against your property. Enter the amount you plan to draw, the interest rate (APR), how many years you will draw the money with interest-only payments, and how many years you will take to repay it. The calculator then works out your interest-only payment during the draw period, the payment needed to clear the balance during the repayment period, and the total interest you would pay over the life of the loan.
The results are based on the figures you enter, and they assume the rate and the balance stay the same throughout the draw period. Real lenders may apply different terms, fees or rate changes, so treat the output as a guide. Check the final figures with your lender or bank before you commit to anything.
How to use the home equity loan calculator
- Enter the amount you intend to draw in pounds.
- Enter the interest rate (APR) as a percentage.
- Enter the draw period in years, which is the time you pay interest only.
- Enter the repayment period in years, which is the time you take to repay the balance.
- Read the monthly payment while drawing, the monthly payment while repaying and the total interest.
- Change one figure at a time to see how the rate or the terms affect your payments.
The formula
- Interest-only payment = amount drawn × annual rate ÷ 12
- Repayment payment = P × r ÷ (1 − (1 + r) ^ −n), where P is the amount borrowed, r the annual rate ÷ 12 ÷ 100 and n the number of months over the repayment period
- Assumes the rate and the balance stay the same through the draw period
Worked example
The figures below are made up to show the maths. They are not current prices, rates or product figures.
| Amount drawn | £50,000.00 |
|---|---|
| Interest rate (APR) | 8.5% |
| Draw period (interest only) | 10 years |
| Repayment period | 20 years |
- Monthly payment while drawing (interest only) £354.17
- Monthly payment while repaying £433.91
- Total interest £96,638.79
Tips for an accurate answer
- Use the APR quoted by your lender, as this is the rate the calculator expects.
- Try a longer repayment period to see how it lowers the monthly payment but raises the total interest.
- Remember the calculator keeps the rate and balance fixed, so check how a rate change would affect you.
- Compare results with the figures your lender gives you in writing before you decide.
Questions people ask
What is a home equity loan calculator?
It is a tool that estimates the monthly payments on a loan secured against your home. You enter the amount drawn, the APR, the interest-only draw period and the repayment period. It then shows your payment while drawing, your payment while repaying and the total interest.
How do I work out payments on a £50,000 loan in the UK?
Enter £50,000 as the amount drawn, along with the APR and the terms you are considering. For the example on this page, a £50,000 drawn amount at 8.5% with a 10-year draw period and a 20-year repayment period gives £354.17 a month while drawing. The calculator then shows the repayment figure and total interest.
Can this calculator work out a mortgage repayment?
This calculator is built for home equity loans that have an interest-only draw period followed by repayment. It does not model a standard mortgage. For a mortgage, a dedicated repayment calculator with the right terms will give a more suitable answer.
Who should use this calculator?
Anyone thinking about borrowing against the value of their home can use it to explore possible payments. It is most useful for comparing different amounts, rates and terms side by side.
Does the calculator include fees?
No. It works only from the amount, rate and terms you enter, so any arrangement fees or other charges are not included. Ask your lender for the full cost.
Why are the draw period payments lower?
During the draw period you pay only the interest on the amount drawn, so the monthly figure is smaller. Repayment starts after that and must clear the whole balance.
What does total interest mean here?
It is the sum of all the interest you would pay across both the draw and repayment periods, based on the figures you entered.
Is this financial advice?
No. It is a calculator that does the sums for you. For advice on whether a home equity loan suits your circumstances, speak to a qualified adviser.
Sources
This calculator uses the standard loan and interest formulas above and the numbers you type. It needs no outside figures.
An estimate from the numbers you enter, worked out with the formula shown. It is maths, not financial advice: your lender or bank has the final figures. Page checked 23 Oct 2026. Read the disclaimer