Finance category
Mortgage, loan, investing, tax, and money calculators.
Construction Loan Calculator
Construction loans are interest-only, pay only on drawn funds, and convert to a permanent mortgage (or get refinanced out) at substantial completion. This calculator builds a month-by-month draw schedule and total interest for the build.
Total interest during build
$18,594
Average outstanding balance
$236,111
Total funds drawn
$425,000
Final payoff at close-out
$443,594
principal + accrued interest
| Month | Draw | Balance | Interest |
|---|---|---|---|
| 1 | $47,222 | $47,222 | $413 |
| 2 | $47,222 | $94,444 | $826 |
| 3 | $47,222 | $141,667 | $1,240 |
| 4 | $47,222 | $188,889 | $1,653 |
| 5 | $47,222 | $236,111 | $2,066 |
| 6 | $47,222 | $283,333 | $2,479 |
| 7 | $47,222 | $330,556 | $2,892 |
| 8 | $47,222 | $377,778 | $3,306 |
| 9 | $47,222 | $425,000 | $3,719 |
How to Use
- Enter the total loan amount approved for the build.
- Enter the interest rate. Construction notes often price at prime + 1% to 4%.
- Enter the build term in months — from first draw through the certificate of occupancy.
- Pick a draw shape: linear (even), front-loaded (site/foundation heavy), or back-loaded (finish heavy).
Frequently Asked Questions
What's a typical construction loan rate?
As of late 2025, typical bank construction rates run 9–12% (prime + 1 to 4), with hard-money construction at 10–14%. Converted to a standard mortgage (perm) at a fixed rate at completion.
What's a construction-to-perm loan?
A single close structure where the construction phase automatically converts to a permanent mortgage at substantial completion — avoiding a second set of closing costs. Fannie Mae, FHA, and VA all offer these.
How are draws approved?
Each draw request is accompanied by a lien waiver, inspection, and contractor invoices. The lender's inspector verifies progress before approving disbursement. Typical 5–10 day funding cycle.
Does this include the interest reserve?
This shows the gross interest that would need to be paid. In most construction loans, an interest reserve is pre-funded from the loan itself. Use our Interest Reserve Calculator to size that reserve.
Related Calculators
Interest Reserve Calculator
Pre-fund interest during the build.
Draw Schedule Calculator
Stage-by-stage budget allocation.
Loan-to-Cost Calculator
Check maximum construction loan size.
Hard Money Loan Calculator
Alternative short-term financing.
Rehab Loan Calculator
Purchase-plus-rehab financing.
Cost Overrun Calculator
Size the contingency beyond base budget.
More Finance Calculators
Browse all finance →AI Cost Calculator
Compare token costs across OpenAI, Anthropic, and Google AI models. Calculate monthly API spending for GPT-4o, Claude, Gemini, and more.
Tip Calculator
Calculate the perfect tip and split the bill between friends. Choose preset percentages or enter a custom tip amount.
Bill Splitter Calculator
Split an uneven restaurant bill by item, divide tax and tip proportionally, and see exactly who owes whom.
Discount Calculator
Calculate sale price, discount amount, stacked discounts, sales tax, and total savings for any markdown.
Gas Mileage Calculator
Calculate MPG or km/L, estimate trip fuel cost, and compare annual fuel expenses between two vehicles.
Sales Tax Calculator
Add sales tax to a price, reverse-calculate the pre-tax amount from a total, and estimate tax for multiple items on one receipt.
Keep exploring
Next steps in Finance
Previous calculator
Comps Adjustment Calculator
Adjust comparable sale prices for differences (sq ft, bedrooms, bathrooms, condition, garage) to match the subject property.
Next calculator
Conversion Rate Calculator
Calculate conversion rate, compare A/B tests, set goals, and project ecommerce or marketing revenue from your funnel.