Payment on a $100K Home Equity Loan

A $100,000 home equity loan costs about $2,028.71 per month at 8% APR for 5 years, before lender fees or other charges. Use the calculator to enter a loan amount, APR, and term to estimate the monthly payment and total interest; the actual figures depend on your lender’s terms.

Formula

The calculator estimates a fixed monthly payment using the standard amortizing-loan formula:

Payment = P × r ÷ [1 − (1 + r)⁻ⁿ]

• P is the amount borrowed, in dollars.
• r is the monthly interest rate, calculated as APR ÷ 1,200. For an 8% APR, r is 0.0066667 per month.
• n is the number of monthly payments, calculated as loan term in years × 12.

Total interest is estimated as the rounded monthly payment multiplied by the number of payments, minus the original principal: interest = payment × n − P. The calculator uses the unrounded payment formula for its displayed monthly payment and rounds outputs to cents. The total-interest estimate therefore uses the displayed payment rounded to cents.

Worked Example

Using the default inputs—$100,000 principal, 8% APR, and a 5-year term:

1. Convert the annual rate to a monthly rate: 8 ÷ 1,200 = 0.0066667.
2. Convert the term to payments: 5 × 12 = 60 monthly payments.
3. Substitute into the payment formula: $100,000 × 0.0066667 ÷ [1 − (1.0066667)⁻⁶⁰] = approximately $2,028.71 per month.
4. Estimate total interest using the displayed payment: $2,028.71 × 60 − $100,000 = $21,722.60.

The result is a principal-and-interest estimate: a $100,000 balance paid over 60 months at 8% APR produces a monthly payment of $2,028.71 and estimated total interest of $21,722.60.

Assumptions

• The interest rate is fixed for the full repayment term.
• Payments are equal monthly payments, made at the end of each monthly period.
• Interest is modelled monthly at APR divided by 12.
• Fees, taxes, insurance, escrow, and other charges are not included.

What the Payment Includes—and Excludes

A home equity loan generally provides a lump sum that the borrower repays over an agreed term. This estimate represents only the scheduled principal-and-interest payment under the calculator’s assumptions. A lender’s required payment may differ if the actual rate, repayment schedule, amount financed, or fees differ.

For example, a lender may disclose an origination charge or other costs separately, or include eligible charges in the amount financed. If a charge is added to the balance, the payment is calculated on a higher principal than $100,000. Check the loan disclosure for the amount financed, payment schedule, and any fees rather than treating this calculator’s estimate as a quoted payment.

The calculation assumes an ordinary fully amortizing loan: each payment covers interest due for that period and pays down principal, so the balance reaches zero after the scheduled final payment, subject to rounding and the lender’s accounting. It does not model a draw period, a changing rate, missed payments, late charges, or optional extra payments.

How APR and Loan Term Affect the Estimate

The payment depends on the amount borrowed, APR, and repayment length together. Holding the APR and term constant, a larger principal produces a larger payment. Holding principal and term constant, a higher APR increases the payment and the total interest estimate. A longer term usually lowers the required monthly payment for a fixed rate and principal, but the loan remains outstanding longer and total interest can increase.

These relationships do not say what rate or term a particular borrower will receive. Enter the APR and term shown in the lender’s offer to estimate that loan’s arithmetic. APR may reflect certain borrowing costs under a lender’s disclosure; this calculator treats the APR as a monthly rate input and does not separately model fees or how they are paid.

Using the Estimate and Understanding Its Limits

For a useful estimate, use the proposed loan amount rather than the home’s value, and enter the repayment term in years. The APR field expects a percentage such as 8, not a decimal such as 0.08. The term is converted into months automatically. Rounding means a lender’s final payment or last payment may differ by a few cents.

• Compare estimates only when the principal, APR, and term assumptions are clear.
• For a different loan amount, change the principal input; the $100,000 example is not a loan limit or an approval estimate.
• For variable-rate terms, payment changes, or fees rolled into the balance, use the lender’s detailed schedule instead of relying on this fixed-rate estimate.
• Ask the lender for the actual payment, total of payments, amount financed, and itemized charges in its disclosure.

A home equity loan uses home equity as security for the debt, but this calculator does not assess collateral, eligibility, repayment capacity, or the consequences of missed payments. It only performs payment arithmetic. The result is an estimate; the lender’s disclosure gives the exact figures.

Frequently Asked Questions

What is the monthly payment on a $100,000 home equity loan?
It depends on APR and term. At the calculator’s example inputs of 8% APR for 5 years, the estimated payment is $2,028.71 per month, excluding fees and other charges.

How much interest would I pay on $100,000?
At 8% APR over 5 years, the estimate is $21,722.60 in total interest, based on 60 payments of $2,028.71. Different rates, terms, or payment schedules produce different totals.

Does a home equity loan payment include taxes and insurance?
Not in this calculator. It estimates principal and interest only; check the lender’s payment schedule and disclosure for any other amounts.

Does choosing a longer term lower the payment?
For the same principal and fixed APR, a longer amortization term generally lowers each scheduled payment, while extending repayment and potentially increasing total interest.

Is a home equity loan payment the same as a HELOC payment?
No. This calculator models a lump-sum loan with fixed monthly amortizing payments. A home equity line of credit can have different borrowing and repayment phases, so its payment may not follow this formula.

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in p | Loan amount | $ | 100000 | 1 | 100000000
in apr | Interest rate (APR) | % | 8 | 0.01 | 100
in yrs | Loan term | years | 5 | 0.0833 | 50
out pmt | Monthly payment | $ | p * (apr / 1200) / (1 - (1 + apr / 1200) ^ -(yrs * 12)) | 2
out int | Total interest | $ | pmt * yrs * 12 - p | 2