Pool loan calculator

It’s essential to be informed about your financing options if you’re looking to add a pool to your property. If you get a good deal on your loan rates, for example, you’ll have smaller pool loan payments — and that leads to more cash left over to save or invest in other home renovation projects. 

‍

Translating obscure financing numbers into real-life impacts on your monthly budget can be difficult, but we have a tool to help. You can use this pool loan calculator to compare different loan programs and see exactly how much they might cost you. 

Using the pool loan calculator

Home improvement loans are some of the most popular options to pay for a new swimming pool. These typically take the form of unsecured personal loans, which we’ll use for this pool loan calculator. 

‍

You’ll need the following information:

• Loan amount: The total purchase price of the pool with everything included, such as labor, materials, and accessories.
• Interest rate: The fixed interest rate of the loan, not including any extra charges like origination fees. 
• Loan term: The length — in months — that you’ll take to repay the loan. A loan with 240 monthly payments will take 20 years to pay off, for example. 
• Fees: The dollar amount of any lender-imposed origination fees or other charges. Not all lenders charge upfront fees. In this example, we are including a 5% origination fee.

‍

You’ll get several numbers in return. Here’s how to interpret each item:

• Monthly payment: The total monthly cost of the loan. Each month it’ll be split up behind the scenes into a separate interest and principal payment, which you can see on the amortization schedule.
• Financing cost: The total cost of interest and fees that you’ll pay over the entire period of the loan. 
• Total cost: The total cost to finance a pool, including the price of the pool itself, the total amount of interest paid over the life of the loan, and any upfront fees. 
• Amortization schedule: Click the button to see a drop-down chart that shows how each payment is divvied up, with some going to the lender as interest and some going to pay down the principal balance of the loan.

Pool loans: An overview

It’s important to understand how pool loans work. Despite the name, there aren’t any standardized “pool loan” products used only to pay for new swimming pools, unlike home loans and car loans. It’s more of a colloquial term that people might use in conversation. 

‍

In reality, many different types of loans could fall under the “pool loan” umbrella, but unsecured personal loans are some of the most common. 

‍

A personal loan requires a good or excellent credit score in order to qualify for the best rates. Even then, you’ll typically pay slightly higher interest rates on a personal loan compared to a financing option that’s backed by collateral, such as a second mortgage. Credit unions, for example, charged an average interest rate of 10.89% on a three-year personal loan during the second quarter of 2024, compared to just 7.13% on a five-year home equity loan. 

‍

Many people still prefer personal loans because of their low up-front costs and speed of funding. Some lenders can get your funds to you as soon as the same day, for example, and may not even charge any origination fees at all. 

How much does a pool cost?

A pool typically costs between $1,000 and $90,000, depending on the construction method and the size. Most pools fall into one of four main categories, with the associated costs going up as the pool type becomes more complex:

• Hot tub: $2,000 - $11,000
• Swim spa: $20,000 - $40,000
• In-ground pool: $44,363 - $86,883
• Above-ground pool: $1,011 - $6,016

Alternative ways to finance a pool

Unsecured personal loans are just one tool you can use when it comes to financing your new pool. If you’re comfortable leveraging the equity in your home, you may get even better rates by using a secured mortgage loan instead. Plus, you may be able to deduct the interest you pay on second mortgages on your tax return, yielding even bigger savings. 

‍

Pool loans that are secured by your home carry a bit more risk because if you default, your lender can take possession of your home just the same as if you default on a mortgage. That rarely happens, but it’s still essential to consider your income stability before you apply. 

‍

Here are some of the most popular ways people tap into their home equity in order to build a new pool for their family:

Home equity loan

A home equity loan is the closest option to a personal loan. It’s disbursed in a lump sum and repaid with a fixed rate and equal monthly payments over a period of five to 30 years. These longer term lengths also offer you the freedom to borrow larger amounts of money, perfect if you have other home improvement projects you’re working on or if you need funds for other uses. 

Home equity line of credit (HELOC)

Many homeowners prefer HELOCs due to their flexibility. Instead of disbursing the funds all up front, a HELOC operates more akin to a credit card, where you have the option to borrow money during a draw period. Draw periods typically last for five to 10 years, and during this time, you’ll only be required to make interest-only payments (although you can pay more if you want). After the draw period ends, you’ll repay the funds over the course of a 10 to 20-year repayment period.

Home equity investment (HEI)

A home equity investment is a partnership with a company that invests in your home’s future equity. You’ll receive upfront funding and because it’s not a debt, you aren’t required to make any payments in the interim. After 30 years, you’ll repay the money you borrowed in a single payment, along with a share of your home’s appreciated value (i.e., how much it’s increased over time). Many people repay the HEI before then if they sell their home, however. 

Final thoughts

Building a pool is expensive, and it pays to shop around for the best financing offer rather than just putting everything on your credit card. Even finding a rate offer for just 3% less can save you thousands of dollars over the life of a loan, for example. 

‍

Make sure you thoroughly consider all of your options, and once you decide on the right funding method, try to get pre-qualified with several lenders in order to find the best deal on your pool’s financing. 

‍