CONSTRUCTION LOAN CALCULATOR
This simplified loan calculator is meant to help you estimate the approximate costs of a construction loan. We created it for informational purposes only (we're architects, not financial advisors...), and it does not constitute financial or lending advice. Rates, terms, fees, and loan structures vary by lender, borrower, and where we are in the financial cycle. Please consult a qualified lender or financial advisor before making decisions about financing your project.
Results
Payment Schedule
| Month | Initial Balance | Interest | Principal | Ending Balance |
|---|
How to use it
First, choose Purchase if the loan needs to cover buying the land as well as building on it, or Refinance if you already own your land free and clear — in that case the land becomes equity you bring to the table, and only the construction itself is financed. Second, enter the land and construction costs along with the cash you plan to put down. Third, add the loan terms — construction loans run a point or two above mortgage rates, so the two rates will usually differ. Then press Calculate.
What the numbers mean
- Initial construction loan
- The total short-term loan that funds the project — everything being financed before the permanent mortgage takes over.
- First and last interest-only payments
- During construction you pay interest only, and only on what has actually been drawn. Early on the balance is small, so the first payment is modest; by the final month nearly the full loan has been drawn, so the last payment is the largest. Your real payments will fall somewhere along that ramp.
- Initial mortgage balance
- When construction wraps up, the loan converts to a conventional mortgage. This is the balance that mortgage starts with.
- Monthly mortgage payment
- Your regular principal-and-interest payment once you've moved in. Taxes, insurance, and any HOA dues would come on top of this.
The assumptions behind the math
Every calculator simplifies, and it's only fair to say how this one does. It assumes construction funds are drawn evenly, month by month, across the length of the project — real draw schedules are lumpier, front-loaded for foundation and framing. It assumes interest during construction is paid monthly rather than rolled into the loan. And it assumes the full construction balance converts to the permanent mortgage with no change in loan amount. Lenders structure these loans in more than one way, so treat these figures as a well-drawn sketch, not a contract.
This calculator is for informational purposes only and does not constitute financial or lending advice. Rates, terms, fees, and loan structures vary by lender and borrower. Please consult a qualified lender or financial advisor before making decisions about financing your project.
CONSTRUCTION LOAN CALCULATOR
This simplified loan calculator is meant to help you estimate the approximate costs of a construction loan. We created it for informational purposes only (we're architects, not financial advisors...), and it does not constitute financial or lending advice. Rates, terms, fees, and loan structures vary by lender, borrower, and where we are in the financial cycle. Please consult a qualified lender or financial advisor before making decisions about financing your project.
Results
Payment Schedule
| Month | Initial Balance | Interest | Principal | Ending Balance |
|---|
How to use it
First, choose Purchase if the loan needs to cover buying the land as well as building on it, or Refinance if you already own your land free and clear — in that case the land becomes equity you bring to the table, and only the construction itself is financed. Second, enter the land and construction costs along with the cash you plan to put down. Third, add the loan terms — construction loans run a point or two above mortgage rates, so the two rates will usually differ. Then press Calculate.
What the numbers mean
- Initial construction loan
- The total short-term loan that funds the project — everything being financed before the permanent mortgage takes over.
- First and last interest-only payments
- During construction you pay interest only, and only on what has actually been drawn. Early on the balance is small, so the first payment is modest; by the final month nearly the full loan has been drawn, so the last payment is the largest. Your real payments will fall somewhere along that ramp.
- Initial mortgage balance
- When construction wraps up, the loan converts to a conventional mortgage. This is the balance that mortgage starts with.
- Monthly mortgage payment
- Your regular principal-and-interest payment once you've moved in. Taxes, insurance, and any HOA dues would come on top of this.
The assumptions behind the math
Every calculator simplifies, and it's only fair to say how this one does. It assumes construction funds are drawn evenly, month by month, across the length of the project — real draw schedules are lumpier, front-loaded for foundation and framing. It assumes interest during construction is paid monthly rather than rolled into the loan. And it assumes the full construction balance converts to the permanent mortgage with no change in loan amount. Lenders structure these loans in more than one way, so treat these figures as a well-drawn sketch, not a contract.
This calculator is for informational purposes only and does not constitute financial or lending advice. Rates, terms, fees, and loan structures vary by lender and borrower. Please consult a qualified lender or financial advisor before making decisions about financing your project.