Construction Loan Calculator

How to Use This Calculator

• Total Construction Cost ($): Enter the full cost to build (including land if financed, materials, labor, permits, etc.).
• Down Payment ($): Enter the amount you will pay up-front. The rest is financed.
• Interest Rate (% per annum): Enter the expected interest rate for the construction loan period.
• Construction Period (months): Enter the total construction time (in months).
• Number of Draws: Enter how many times the lender will disburse funds to pay contractors (common is 4-6).
• Permanent Loan Term (years): If you convert to a "perm" mortgage after construction, enter the term in years (e.g., 30).
• Perm Loan Interest Rate (%): Enter the expected interest rate for your permanent mortgage.
• Estimated Closing/Origination Fees ($): Enter the total fees charged by the lender for originating and closing both loans.

How Calculations Work

• Construction Loan Amount: = Total Cost - Down Payment
• Interest Paid During Construction: Calculated based on average outstanding balance (using draw schedule), interest rate, and construction period.
• Total Amount Financed: = Loan Amount + Construction Interest + Fees
• Permanent Loan: Assumes you roll total amount financed into a fixed mortgage at the end of construction.
• Permanent Monthly Payment: Uses standard amortization formula for principal & interest.
• Total Repayment: = Monthly Payment × Number of Months (including principal & interest over full perm loan).

Note: This calculator provides an advanced estimate. Actual loan terms and closing costs may vary. Always consult your lender or financial advisor for precise figures.