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Construction Draw Velocity Calculator

Draw pace drives construction interest burn.

$
$
$
%

Interest impact of variance

$22,500

Monthly variance $

$250,000

Months to full draw

15.2

How the math works

Variance = actual − planned. Interest impact = |variance| × rate × months/12. Burn months = budget / actual.

$1.45M actual vs $1.2M plan = +$250k/mo. At 9% × 12/12 = $22.5k impact/mo = $270k if sustained 12 mo. Material variance.

How to Use

  1. Enter total loan budget.
  2. Enter planned monthly draw.
  3. Enter actual monthly draw.
  4. Enter construction months remaining.
  5. Enter construction rate %.
  6. Read interest impact of variance.

Frequently Asked Questions

Why track velocity?

Faster-than-planned draws = higher interest carry earlier. Slower-than-planned = delayed project + potentially missed loan maturity. Both directions hurt. Monthly tracking against plan lets finance team recalibrate.

What drives variance?

Weather delays (slower). Change orders (faster or slower depending on type). Material shortages (slower). Labor availability (slower). Scope changes. Schedule acceleration. Plan regularly vs actual and flag >10% variance to GC and lender.

Interest impact?

$20M loan at 9% = $180k/mo fully drawn. If drawn 2 months earlier than plan = $360k extra interest. If drawn 2 months later: $360k saved (but maybe missed milestones). Modeling pulls/pushes from completion date matters more than pure draw speed.

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