ADU Loan Calculator
Accessory dwelling units (ADUs) — backyard cottages, garage conversions, and similar secondary homes — are often financed through home equity loans, HELOCs, cash-out refinances, or dedicated renovation loan programs. Enter your expected loan amount, rate, and term to estimate the monthly payment for building one.
Enter your numbers and select Calculate to see your estimated payment.
How this calculation works
Standard amortization formula applied to the loan amount, rate, and term entered.
Example calculation
A $130,000 ADU loan at 8% over 15 years runs about $1,242 per month, with roughly $93,600 in total interest.
Frequently asked questions
What loan types are commonly used for ADUs?
Common options include home equity loans, HELOCs, cash-out refinances, and renovation-specific mortgage products. Each has different rates and structures, so this calculator works as a general planning tool across all of them.
Can projected rental income help finance an ADU?
Some renovation loan programs allow projected rental income from the ADU to be factored into qualification, though this varies significantly by lender and loan type.
Does this include construction costs directly?
No — enter your total expected loan amount for the project. Get a contractor estimate first, then use that figure here to model the financing.
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This calculator provides estimates for informational purposes only and is not a loan offer or financial advice. See our Disclaimer.