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Construction Loan Fee Calculator

Construction loans carry more fee types than permanent loans — origination, exit, draw inspection, servicing, and legal stack up fast. This calculator sums them into a total fee load and converts into bps of loan so you can compare offers apples to apples.

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Total construction loan fees

$321,000

Origination points

$150,000

Exit fee

$75,000

Inspection fees total

$9,000

Servicing fees total

$12,000

Total fees as bps of loan

214

How the math works

Construction loans stack more fees than permanent: origination points, exit fee, monthly servicing, and per-draw inspection. The total fee load on a 2-year construction loan typically runs 200-350 bps of loan — material compared to the 100-200 bps on a stabilized CMBS.

Capitalize construction loan fees into project cost, not expense them. Some lenders let you roll fees into the loan itself — convenient but expensive over the hold.

How to Use

  1. Enter loan amount, origination points, and exit fee.
  2. Enter inspection fee per draw and number of draws.
  3. Enter legal budget and monthly servicing fee.
  4. Enter construction term in months.
  5. Read total fees and bps of loan.

Frequently Asked Questions

Typical fee stack?

Origination: 0.75-1.5%. Exit: 0.5-1.0%. Inspection: $300-$500 per draw × 15-25 draws. Servicing: $300-$1,000 per month. Legal: $50K-$150K+. Total: 200-350 bps of loan.

Can fees be negotiated?

Origination and exit — yes, especially for repeat borrowers or large loans. Inspection fees are typically fixed per draw. Servicing is small but can be waived on big deals. Legal is legal.

Treat fees as capex?

Yes — capitalize as soft cost during construction, then amortize over perm loan life. IRS allows amortization over term of loan or 15 years, whichever is shorter.

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