Construction Loan Calculator
Calculate payments for your home construction loan
Loan Details
Typical: 6.5% - 9.5%
Loan Summary
Loan Details
Financial Disclaimer
This calculator provides estimates for informational purposes only. Actual loan terms, rates, and payments may vary. This is not financial advice. Consult with a qualified financial advisor or lender for specific guidance. PayoffCalculator.io is not a lender and does not provide loans.
How to Use This Construction Loan Calculator
Enter your total construction cost, interest rate, construction period length, and permanent loan term. Optionally add a draw schedule to see how payments increase as funds are disbursed during construction.
Understanding Construction Loan Loans
Construction loans fund home building in stages. During construction, you pay interest-only on disbursed funds. Once complete, the loan converts to a standard mortgage with principal and interest payments.
Tips for Getting the Best Construction Loan Rate
Get multiple bids from builders and include a contingency budget of 10-15%. Work with a lender experienced in construction loans. Lock your rate on the permanent loan as early as possible.
Frequently Asked Questions
Construction loans have two phases: the construction period (typically 12-18 months) where you pay interest-only on drawn funds, and conversion to a permanent mortgage with regular payments.