HEA Loan Calculator
See what a home equity agreement really costs before you sign. Enter your home value, the investment amount, and the terms, and this HEA calculator projects the future home value, the repayment under both standard HEA structures, the effective annual rate (so you can compare it with a loan), and what you keep after settling.
Estimate only. Real agreements vary: some share downside if the home loses value, some floor the repayment; fees and early-buyout terms differ by provider. Read the contract, not just the calculator.
Worked example, checked against this exact tool
$500,000 home, $50,000 investment, 4% appreciation, 10 years, 3% fee. Future value = 500,000 x 1.04^10 = $740,122.14. Under structure A (10% of future value), repayment = $74,012.21, an effective annual rate of 4.00%; you keep $666,109.93. Under structure B ($50,000 + 20% of appreciation), repayment = $98,024.43, an effective rate of 6.96%. Net cash after the 3% fee = $48,500 either way.
The two HEA structures
Providers calculate repayment one of two ways, and the difference is thousands of dollars. In structure A, the investor takes a fixed percentage of whatever your home is worth when you settle: 10% of a $600,000 sale is $60,000 on $50,000 received. In structure B, you repay the original investment plus a share of the appreciation: $50,000 plus 20% of a $100,000 gain is $70,000. Neither structure is “principal plus a percentage of the full future value” added together; if a calculator shows you that hybrid, its math does not match any real agreement.
The effective rate: the number that matters
An HEA has no interest rate, which makes it hard to compare with a loan. The effective annual rate fixes that: it is the rate r where investment x (1 + r)^term equals the repayment. In the example above, structure A costs an effective 4.00% per year and structure B costs 6.96%. Now you can hold those numbers next to a HELOC quote and see which is actually cheaper. That is exactly what the CFPB did in 2025: a $50,000 HEA against a $50,000 HELOC at 9% over 10 years cost $94,000 to $216,000 for the HEA versus $95,000 for the HELOC. The HEA was cheaper only when the home lost value.
Fees come off the top
Most providers charge an origination or processing fee of roughly 3% to 5% of the investment, deducted from your funding at closing, plus appraisal, title, and filing costs. A $50,000 agreement with a 3% fee puts $48,500 in your account, and the true cost should be measured against the $48,500 you actually received, not the headline $50,000. The calculator nets the fee out before computing the effective rate.
You need an exit plan
Repayment comes due as a lump sum: when you sell, refinance, reach the end of the term (usually 10 to 30 years), or buy out early. If you do not sell, you must refinance, take a loan, or extend the agreement to pay the investor off. The investor’s lien sits on your property until then and can complicate refinancing. Before signing, know exactly which of those exits you will use.
What competing calculators miss
The one dedicated HEA tool found covers a single repayment structure and never converts the cost into a comparable rate; the finance guides document both structures and the CFPB cost comparison but offer no calculator at all. This page is the only one combining both real repayment structures, an effective annual rate, net-of-fee cash, and the “what you keep” line in one tool.
Frequently asked questions
What is a home equity agreement?
You receive a lump sum (usually 5% to 20% of your home’s value) with no monthly payments and no interest; at settlement you repay the investor a share of your home’s value or the principal plus a share of appreciation.
Is an HEA a loan?
No. It is a shared-equity contract, not debt: it generally does not appear on your credit report or count in your debt-to-income ratio, though the investor places a lien on the property.
How is HEA repayment calculated?
Either as a fixed percentage of the home’s future value, or as the original investment plus an agreed share of the appreciation. The two structures give different answers; compare both.
What does a home equity agreement cost?
No interest, but a 3% to 5% origination fee plus closing costs, and the real cost is the share of appreciation you give up. Convert it to an effective annual rate to compare with loans.
Is an HEA cheaper than a HELOC?
Sometimes. A 2025 CFPB analysis found a $50,000 HEA cost $94,000 to $216,000 over 10 years versus $95,000 for a 9% HELOC; the HEA won only when the home lost value.
Can I pay off an HEA early?
Most providers allow early buyout, usually without a prepayment penalty, but the payoff is based on the home’s value when you exit, so a rising market means a bigger buyout.
What happens if my home loses value?
It depends on the contract: some agreements share the downside and reduce what you owe; others floor the repayment. The calculator shows the raw math; check your agreement’s downside clause.
How long do HEA terms last?
Typically 10 to 30 years, or until you sell, refinance, or buy out the investor’s share.
Do I still own my home with an HEA?
Yes. You remain the full legal owner, responsible for taxes, insurance, and maintenance; the investor holds a lien, not ownership.
Can an HEA affect refinancing?
Yes. The investor’s lien must usually be paid off or restructured before you refinance, so factor that into your plans.