The average estimate for the cost of installing an underground pool ranges from $35,000 to $55,000.
So if you don’t find yourself, let’s say swimming in money, chances are you will need funding to make such a major home improvement. AndWhether your dream pool is closer to the lower or upper end of the average price range, you definitely need to do some math to make sure the potential loan is right for your budget.
This pool loan calculator will help you predict the impact of a new pool on your finances.
Pool loan calculator
How the pool loan calculator works
The calculator is designed to help you determine three very important funding factors:
- Monthly payment that you will make.
- Loan repayment period in full.
- The total amount of interest you will pay over the life of the loan.
Below are the steps to use the calculator and get the required loan information.
1. Enter the loan amount
You will start by entering your desired loan amount into the calculator. If you’re not yet sure how much your pool will cost, $45,000 might be a good average to play around with.
2. Enter the annual interest rate
Then enter the interest rate you expect to receive on the loan. If you’re not sure what rate you’ll get, 10% is a good ballpark APR for a personal loan borrower with a strong credit score.
You can expect a much lower HELOC rate of around 5% or so, although this will vary depending on your credit score, loan-to-value ratio, and the state of the economy.
3. Choose your calculation method
You can then choose to calculate by monthly payment or loan term.
In the examples below, I am using a loan amount of $45,000 with an expected interest rate of 10% per annum.
Monthly payment
If you have taken a look at your budget, you should have a good idea of how much you can afford to pay each month for your pool.
I entered a payment of $700 per month. This resulted in a rather lengthy period of 92 months (7.67 years) and a whopping $19,400 in total interest paid over the life of the loan.
I won’t be able to sleep at night paying this much interest over such a long period of time, so let’s see what happens if I change the calculation method and change the loan details a bit.
Credit term
If instead I select “Calculate by Loan Term” and enter a term of 60 months, my estimated monthly payment increases to $956.12, but my total interest paid drops to a more manageable $12,367.2. The $7,000 savings in interest will definitely be worth the higher monthly payment in the long run.