Construction Loan Payment Calculator

Model interest payments on drawn funds with a custom draw schedule for new construction.

What This Tool Does

The Construction Loan Payment Calculator models how interest accrues on a construction loan as funds are drawn over time. Input your land cost, construction budget, and customize the draw schedule to see month-by-month interest charges. Compare draw-based interest vs. full-balance interest to see how much you save — and model an interest reserve to eliminate monthly out-of-pocket payments.

1Project Costs

$
$

2Loan Terms

80.0%
50%90%
%
2.0%
0%5%
mo

3Draw Schedule

Adjust draw percentages and timing. Percentages should total 100%.

Draw 1
Draw 2
Draw 3
Draw 4

Total: 100%

Total Project Cost

$400,000

Loan Amount

$320,000

Interest Savings

$5,775

Loan Breakdown

Land Loan Portion$100,000
Construction Loan Portion$220,000
Origination Fee$6,400
Your Down Payment$80,000
Interest Reserve (built into loan)$19,425

Interest Analysis

Total Interest (draw-based)$19,425
If full-balance interest$25,200
You Save$5,775
Avg Monthly Interest$2,158

Month-by-Month Interest

MoDrawBalanceInterest
1+$55,000$155,000$1,356
2$155,000$1,356
3+$55,000$210,000$1,837
4$210,000$1,837
5+$55,000$265,000$2,319
6$265,000$2,319
7+$55,000$320,000$2,800
8$320,000$2,800
9$320,000$2,800
Total Interest$19,425

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What You'll Need (Inputs)

  • Land / lot cost
  • Construction budget
  • Loan-to-cost (LTC)
  • Interest rate
  • Origination points
  • Project duration
  • Custom draw schedule (phases, %, timing)

What You'll Get (Outputs)

  • Total project cost
  • Loan amount breakdown (land vs. construction)
  • Month-by-month interest schedule
  • Total interest (draw-based)
  • Interest savings vs. full-balance
  • Down payment required
  • Interest reserve amount

Perfect For

Related Loan Program

New Construction Loans

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