Tenant Improvement Draw Calculator

Tenant improvement work is paid in draws against completed construction. Retainage is withheld to protect the owner from incomplete work. This calculator sizes each draw net of retainage, splits between lender advance and owner equity, and estimates interest carry during the buildout.

Total TI budget

Retainage %

Number of draws

Lender TI advance rate

Construction loan rate

Average months outstanding per draw

Per-draw amount (net of retainage)

$101,250

Per-draw amount (gross)

$112,500

Total retainage held

$45,000

Lender-funded portion

$360,000

Owner-funded portion

$90,000

Estimated interest carry

$4,809

How the math works

TI draws are requested against completed work, typically monthly or at defined milestones (demolition, rough-in, drywall, finish). The lender funds their advance rate; the owner equity-funds the rest. Retainage (usually 10%) is held back until completion and punch list sign-off.

Interest carry estimates the cost of capital on the average draw balance outstanding for the average months before reimbursement — real projects have staggered reimbursement and higher carry.

How to Use

Enter total TI budget and retainage percentage (usually 10%).
Enter number of draws — typically 3-6 for office buildouts.
Enter the lender advance rate — most TI loans are 75-85%.
Enter construction loan rate and average months a draw is outstanding.
Read per-draw amount, retainage held, and interest carry.

Frequently Asked Questions

When is retainage released?

At substantial completion + lien waivers + punch list sign-off. 50% release at substantial completion is common; balance after punch is complete. In some states retainage drops to 5% after 50% completion.

Who funds the owner portion?

Usually out of cash equity held in an operating account; some lenders require the equity to be 'in first' before releasing any TI advance. Preferred-equity and mezz can fund the owner portion on larger deals.