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Construction Loan Calculator

Build a house, build to suit, or major renovation. Construction loans charge interest only on the drawn balance during the build, then convert to a permanent mortgage. Estimates only

Your Numbers

9 mo
50%

Linear draws average around 50%. Heavier early draws raise this number.

Cost picture

During Build

$15,938

interest-only during the 9-month construction phase

  • Avg outstanding during build: $250,000
  • Avg monthly interest payment: $1,771/mo

After Conversion

$3,327 /mo

monthly P&I on the permanent loan

  • Permanent loan amount: $500,000
  • Total interest over 30-yr permanent: $697,544

All-In Interest Cost

$713,482

construction interest + total interest over the permanent loan

How construction-to-perm works: a single closing covers both phases. You pay interest only on the drawn balance during the build, then the loan converts automatically to a permanent mortgage once construction is complete. The alternative is a stand-alone construction loan followed by a separate refinance into a permanent mortgage; that path means two sets of closing costs and a second qualification at the end of the build. Rate locks during a construction project are a separate conversation because rates can move during the 6 to 12 months of construction.

Build interest is approximated as avgOutstanding x rate x (months / 12). Real draw schedules vary by builder and lender. Permanent loan interest assumes you hold to maturity. Does not include closing costs, land cost separately financed, taxes, insurance, or contingency reserves.

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Estimates only. Actual rates, fees, draw schedules, and conversion terms vary by lender and project. Not a commitment to lend. All loans subject to qualification. Equal Housing Opportunity.