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Construction loan calculator.
Land plus vertical, drawn against a schedule. Interest accrues on what has been drawn, which is why the timeline matters as much as the budget. Land closing and sale costs are yours to enter.
Your deal, in focus
See how the numbers move.
Adjust the assumptions to explore your deal. Your estimate updates as you go.
LTC uses land, construction, and soft costs. LTV uses finished value. The lower limit determines the loan; points, closing, interest, and carry are paid separately. Model the full period through sale, including lease-up or marketing delays. Include contingency in the budget. Monthly carry excludes interest, which is calculated separately.
Use nonnegative figures. Financing shares and rental expense allowances cannot exceed 100%. Loan limits depend on the value or cost basis shown beside each field.
Assumptions behind this estimate
Land funds at closing and the construction budget is drawn against a schedule of values as work is completed and inspected, so interest is charged on the drawn balance rather than the whole facility. Charging the full loan for the full term is the most common way a build pro forma is overstated. The loan is the lower of the advance against cost and the ceiling against finished value, and never more than the project costs. Monthly carry adds taxes, insurance, utilities, and other holding costs through the entered period. Include contingency in the construction budget and avoid counting interest again in carry. Land is treated as a new purchase; existing land equity and a land-loan payoff need a separate model. The rate below is an assumption you can change rather than a quote, since pricing is set by credit, experience and the deal, and the land closing and selling cost fields are your own estimates rather than my terms.
Interest assumes purchase or land funds at closing and an average of 50% of the financed work drawn during the entire hold. Earlier completion or a delay after the final draw increases interest. Draw fees, inspections, extensions, and reserves need to be included in your own cost estimates.
Profit at exit
Your numbers at a glance
Each bar compares an amount. Bars are not portions of a total.
Estimate only, based on the figures you entered. Not a quote, an approval, an appraisal or a commitment to lend, and subject to underwriting.
Profit of $121,520 on $125,280 of cash across 12 months, or 97.0%. Interest is charged on the drawn balance, so the build portion costs roughly half what a full-loan estimate would show.
The modeled loan is limited by 80% of cost. A higher requested advance cannot override the selected value or cost ceiling. This is a planning limit, not a lending decision.
Check my cash budget
Save these numbers, then adjust your inputs above.
Get terms on this deal
Estimate only, based on the figures you entered. Not a quote, an approval, an appraisal or a commitment to lend, and subject to underwriting.
This sends the numbers above straight to me for a person to underwrite. You get an initial written response in 24 to 48 hours, and a straight answer either way. Terms, if offered, are subject to underwriting and approval.
How to read it
What the number means.
A construction loan costs less than its headline suggests early on and more than expected late, because interest runs on the drawn balance rather than on the facility. At the first draw you are paying on very little. By the final draw you are paying on nearly all of it, and any month the build slips is a month at the expensive end.
That is why the timeline is a financial input rather than a scheduling detail. A build that runs three months long does not cost three months of the average balance. It costs three months of the highest balance.
Monthly carry covers taxes, insurance, utilities, and other holding costs you enter, in addition to the separately calculated interest. Include contingency in the construction budget. The exit belongs in the model from the start: a finished building with no plan for the day it is finished is a deadline nobody priced.
Questions
Understanding your results.
How is interest charged during construction?
On the drawn balance. Money that has not been released is not accruing, which is why a slow start is cheap and a slow finish is not.
What is a schedule of values?
The agreed breakdown of what each stage of the build is worth, settled before closing. Each draw is then a check against a document both sides already signed rather than a negotiation about what framing was worth.
How long should I assume the build takes?
Longer than the schedule says, and then test what that does to the interest. The interest line is where an optimistic timeline turns into a real number, and taxes, insurance and utilities on the site run for those extra months too through the monthly carry you enter.
Do you fund the land as well as the build?
Yes, in the same facility. Funding them separately is where builders discover that the second lender values the project differently from the first.
Method
Where these numbers come from.
Ground-up construction loan requirements: what gets checked
A construction loan is underwritten on a budget and a schedule, not a house that exists yet. Here is what has to be in place before one funds.
How a construction draw schedule actually works
A build loan funds in stages against finished work. Here is how a draw schedule is set, what releases each payment, and where builds stall.
Contractor bids: what a lender checks before funding a rehab
Bids get reviewed before close, not after. What that review is actually looking for, and why the cheapest bid is usually the one that fails it.
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This is an estimating tool. It runs arithmetic on the figures you enter using the assumptions stated above, and changing an assumption changes the answer. The result is not a quote, an approval, an appraisal, a valuation, or a prediction of what a property will sell for, and it does not commit anyone to lend. Costs, taxes and market conditions vary by location and change over time. Check the numbers that matter against your own contractor, agent and professional advisers before you commit to a deal.
When the numbers work
Get it underwritten.
A calculator cannot see your property. Estimate only, based on the figures you entered. Not a quote, an approval, an appraisal or a commitment to lend, and subject to underwriting. Send the deal and a person reads it: you get an initial written response in 24 to 48 hours, and a straight answer either way. Terms, if offered, are subject to underwriting and approval. No credit pull to get an answer.