Build Loan Calculator
Interest during construction
9,750.00
Construction Loan Calculator
Average outstanding balance
162,500.00
Peak drawn balance
300,000.00
First month interest payment
125.00
Final month interest payment
1,500.00
Interest reserve needed
9,750.00
Total cost of the construction phase
309,750.00
Permanent loan amount
300,000.00
Permanent monthly payment
1,798.65
Interest over the permanent loan
347,514.57
Worked out from Interest-only accrual on a drawn balance: interest = outstanding balance x nominal annual rate / 12 and 3 other sources.
Interest is accrued monthly on the balance drawn at the start of each month. A lender using daily accrual on actual draw dates will differ.
Inspection and draw fees, retainage, contingency, rate float and conversion terms are only as entered; the lender term sheet governs.
A cash-flow projection from the draw schedule, rate and terms you enter. Real construction loans add inspection and draw fees, retainage, contingency, variable index rates and lender-specific conversion terms; the lender term sheet governs.
How this is worked out
5 steps
- Monthly rate = 6% / 12 = 0.5% per month
- Draws total 300000 over 12 months, peaking at 300000
- Average outstanding balance = 162500
- Construction interest = sum of balance x 0.005 each month = 9750
- Permanent loan of 300000 at 6% over 30 years pays 1798.65 a month
Draw and interest scheduletable
| month | draw | balance | interest |
|---|---|---|---|
| 1 | 25,000 | 25,000 | 125 |
| 2 | 25,000 | 50,000 | 250 |
| 3 | 25,000 | 75,000 | 375 |
| 4 | 25,000 | 100,000 | 500 |
| 5 | 25,000 | 125,000 | 625 |
| 6 | 25,000 | 150,000 | 750 |
| 7 | 25,000 | 175,000 | 875 |
| 8 | 25,000 | 200,000 | 1,000 |
| 9 | 25,000 | 225,000 | 1,125 |
| 10 | 25,000 | 250,000 | 1,250 |
| 11 | 25,000 | 275,000 | 1,375 |
| 12 | 25,000 | 300,000 | 1,500 |
Results are general information, not financial, tax, legal, medical or engineering advice.