Construction-to-Perm Calculator

Construction-to-perm loans (single-close) bundle the construction phase and permanent mortgage into one loan with one closing — avoiding the cost and re-qualification risk of two separate loans. This calculator computes total construction interest carry, conversion fee, and permanent P&I so borrowers can size the all-in cost.

Total loan amount

Construction period (months)

Construction rate %

Permanent rate %

Permanent loan term (years)

Construction-to-perm fee %

Closing fee on conversion

Construction interest + conversion fee

$28,875

Construction interest carry

$23,375

Conversion fee

$5,500

Permanent monthly P&I

$3,613

How the math works

Construction-to-perm loans bundle the construction phase (interest-only on draws) and the permanent mortgage into a single loan with one closing. Avoids the cost and timing risk of two separate loans and second appraisal.

Construction interest is typically interest-only on outstanding draw balance — average balance ≈ 50% of total loan over the construction period. Conversion fees 0.5-1.5% at perm rollover.

How to Use

Enter total loan amount and construction period (months).
Enter construction rate and permanent rate.
Enter permanent term and conversion fee %.
Read construction interest carry, conversion fee, and permanent P&I.

Frequently Asked Questions

Why single-close?

One closing, one set of fees, locked permanent rate at start. Avoids the risk of rates rising during construction or borrower disqualifying for permanent financing later.

Construction interest only?

Yes — construction phase is interest-only on outstanding draws (typically 60-80% of total construction). Calculator approximates with 50% average balance.

Owner-occupied vs investor?

Owner-occupied construction-to-perm goes through Fannie/Freddie at conventional rates. Investor and commercial construction-to-perm at portfolio rates 1-2% higher.