Most homeowners finance a bathroom remodel with a home equity loan or HELOC (about 7% to 8% in 2026 with good credit), a personal loan (about 10% to 20% for most borrowers), or contractor financing. On a $12,000 balance paid off over five years, the difference between those options can be $2,000 to $5,000 in interest.
Use the calculator below to compare monthly payments and total interest for your project, then read on for how each option works and which fits your situation.
Bathroom remodel financing calculator
Bathroom remodel financing options compared
| Option | Typical rate (2026) | Pros | Cons |
|---|---|---|---|
| Cash or savings | — | No interest, no debt | Drains your emergency fund |
| Home equity loan | About 7% – 9.5% | Low fixed rate, long terms | Uses your home as collateral, closing costs, takes weeks |
| HELOC | About 7% – 9.5%, variable | Borrow only what you need, low rates | Rate can rise, home is collateral |
| Personal loan | About 10% – 28% | Fast funding, no collateral | Higher rates, shorter terms, possible origination fee |
| 0% intro APR card | 0% for about 12 – 21 months | No interest if paid off in time | High rate after the promo, limited credit lines |
| Contractor financing | About 0% – 25% | Easy to arrange, promotional offers | Deferred-interest traps, limited lender choice |
| Cash-out refinance | Current mortgage rates | Lowest rates for large projects | Resets your mortgage, closing costs |
| FHA Title I loan | Fixed, set by lender | Available without home equity | Loan limits, approved lenders only |
What it costs to finance a remodel
Here’s what financing $12,000 over five years looks like with good credit (670 to 739):
| Option | APR | Monthly payment | Total interest |
|---|---|---|---|
| Home equity loan or HELOC | 8% | $243 | $2,599 |
| Contractor financing | 11.99% | $267 | $4,012 |
| Personal loan | 14% | $279 | $4,753 |
| Regular credit card | 22% | $331 | $7,886 |
| 0% intro APR card (paid off in 18 months) | 0% | $667 | $0 |
The rate matters more than anything else. Borrowing against your home typically cuts the interest bill roughly in half compared with a personal loan, while putting the remodel on a regular credit card can cost three times as much.
Home equity loans and HELOCs
If you’ve built up equity, borrowing against it usually gets the lowest rate. A home equity loan gives you a lump sum at a fixed rate, which suits a project with a set price. A HELOC works like a credit line: you draw what you need during the project and pay interest only on what you use, but the rate is usually variable. Most lenders let you borrow up to 80% to 85% of your home’s value, minus what you owe on your mortgage. Expect a few weeks to close and possible closing costs, and remember your home secures the loan.
Personal loans
Personal loans are unsecured, so your home isn’t at risk, and funding often arrives within a few days. Rates depend heavily on credit, from around 10% for excellent credit to 25% or more for poor credit, and terms usually run three to seven years. Watch for origination fees of 1% to 10%, which are often subtracted from the loan amount.
0% intro APR credit cards
For smaller projects, a card with a 0% introductory APR can be the cheapest option, as long as you pay off the balance before the promotion ends, typically in 12 to 21 months. Credit limits can be lower than your project cost, and any balance left afterward usually accrues interest at 20% or more.
Contractor and dealer financing
Many remodelers and national brands offer financing through partner lenders, often with promotional rates. It’s convenient, but read the terms. Some “no interest if paid in full” offers use deferred interest: miss the payoff deadline by even a small amount and you owe all the interest back to day one. Compare the APR with a personal loan or home equity offer before you sign. See what national brands charge in our Bath Fitter vs. Re-Bath vs. Jacuzzi comparison.
Government programs
- FHA Title I loans: home improvement loans made by FHA-approved lenders, available even without much home equity.
- FHA 203(k) loans: roll renovation costs into a mortgage when buying or refinancing a home.
- USDA Section 504 Home Repair program: low-interest loans and, for older homeowners, grants for very-low-income homeowners in eligible rural areas.
- State and local programs: many states and cities offer low-interest or forgivable loans for accessibility and safety upgrades, especially for seniors and people with disabilities.
Financing with fair or poor credit
Lower credit scores mean higher rates and fewer options. Home equity lenders usually want a score of about 620 or higher, and 0% cards generally require good credit. If your score is lower, compare personal loans that offer soft-pull prequalification, consider a co-signer, or scale the project down. Be careful with no-credit-check financing and lease-to-own offers, which can carry very high total costs.
How to choose
- You have equity and good credit: a home equity loan or HELOC usually costs the least.
- You need money fast or don’t want to use your home: a personal loan.
- Your project is small and you can pay it off quickly: a 0% intro APR card.
- Your contractor offers a true 0% or low fixed rate: contractor financing can work, but read the fine print.
- You’re buying or refinancing anyway: look at an FHA 203(k) or cash-out refinance.
Tips before you borrow
- Get firm project quotes first so you don’t borrow too much or too little. Our bathroom remodel cost calculator and costs by state guide give you a starting point.
- Add a 10% to 15% contingency for problems found behind walls.
- Prequalify with several lenders using soft credit checks, which don’t affect your score.
- Compare APRs, not just interest rates, since APR includes fees.
- Pay contractors by milestone rather than all upfront, even when financing.
- Track your budget, bids, and payment schedule in our free bathroom remodel budget spreadsheet, which includes a financing comparison tab.
Frequently asked questions
What is the best way to finance a bathroom remodel?
For homeowners with equity and good credit, a home equity loan or HELOC usually has the lowest rate, around 7% to 8% in 2026. Without equity, a personal loan is the most common choice. A 0% intro APR card can be the cheapest option for smaller projects you can pay off within the promotional period.
What credit score do you need to finance a bathroom remodel?
Most home equity lenders look for a score of about 620 to 680 or higher, and the best personal loan rates usually go to scores above 740. Personal loans and contractor financing are available with lower scores, but at much higher rates.
How much is the monthly payment on a $15,000 bathroom remodel?
Financing $15,000 over five years costs about $304 a month at 8% (typical for a home equity loan) or about $349 a month at 14% (typical for a personal loan with good credit).
Is contractor financing a good idea?
It can be convenient, and promotional offers can be good deals. Read the terms closely: many same-as-cash or no-interest-if-paid-in-full offers use deferred interest, which charges all the interest back to the start date if any balance remains when the promotion ends.
Can I finance a bathroom remodel with bad credit?
Yes, but expect high rates. Options include personal loans for fair or poor credit, contractor financing, and government programs like FHA Title I loans. Be cautious with no-credit-check offers, which often carry very high costs.
Rates, payments, and interest shown are estimates for planning purposes, not loan offers or financial advice. Bath Calculator is not a lender. Check current rates and terms with lenders before you borrow. See our disclaimer and affiliate disclosure.
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