Construction Loan To Perm Transition Calculator

C-to-P transition has math. This calculator models.

Construction loan balance

Construction rate %

Perm loan amount

Perm rate %

Exit fee %

Annual rate savings

$300,000

Closing cost (exit + new)

$292,500

Payback months

11.7

How the math works

Savings = balance × (construction rate − perm rate). Closing = exit fee + new loan closing (~1.5%). Payback in months.

$15M at 9% to $14.5M at 7%: $300k/yr savings. $75k exit + $218k new closing = $293k total. Payback 11.7 months. Solid transition — worth doing quickly.

How to Use

Enter construction loan balance.
Enter construction rate %.
Enter perm loan amount.
Enter perm rate %.
Enter exit fee %.
Read rate savings and closing cost.

Frequently Asked Questions

C-to-P structures?

Single-close: one set of closing costs, converts automatically at stabilization. Two-close: construction loan + separate perm — more flexibility, more cost. Single-close convenient; two-close often better terms on perm.

Stabilization triggers?

Minimum occupancy (90%+ typical). Minimum DSCR (1.20+). Debt yield threshold. Certificate of occupancy. Rent commencement. Operating history (3-6 months). Must meet all to convert — failure: construction loan extends, then default risk.

Mini-perm?

3-5 year term bridging construction and long-term permanent. Typical after conversion. Allows stabilization before committing to 10+ year perm. Slightly higher rate than perm; lower than construction. Flexibility at modest cost.