Construction Loan Calculator
Calculate construction loan payments, draw schedules, and total interest costs for your building project.
Construction Loan Calculator
Plan your construction financing with accurate draw schedules and interest calculations
Understanding Construction Loans
How Construction Loans Work
Unlike traditional mortgages, construction loans release funds in phases called "draws" as your project progresses. You only pay interest on the amount drawn, not the full loan amount. This makes payments lower at the start and gradually increase.
Typical Draw Schedule
- Draw 1: Land purchase & permits (15-20%)
- Draw 2: Foundation complete (15-20%)
- Draw 3: Framing complete (20-25%)
- Draw 4: Mechanical rough-in (15-20%)
- Draw 5: Interior finish (15-20%)
- Draw 6: Final completion (5-10%)
Construction-to-Permanent Loans
- Single closing saves on fees
- Lock in permanent rate upfront
- Seamless transition after construction
- Often called "one-time close" loans
- Available through many lenders
Tips for Construction Financing
- Plan for 10-20% contingency
- Get detailed contractor bids
- Understand draw inspection process
- Budget for interest during construction
- Compare one-time vs two-time close options