You pay interest only on funds drawn; average draw ≈ 50–60% over the build.
Example: Construction budget: $450,000 · Rate: 8% · Build time: 12 mos · Average outstanding draw: 55% → Estimated construction interest: $19,800.
Average drawn balance: $247,500
Interest-only payment at full draw: $3,000.00
Frequently asked questions
How do I calculate construction loan? You pay interest only on funds drawn; average draw ≈ 50–60% over the build. Enter your numbers above and the result updates instantly. For example: Construction budget: $450,000 · Rate: 8% · Build time: 12 mos · Average outstanding draw: 55% → Estimated construction interest: $19,800.
Is this Construction Loan Calculator free? Yes — completely free with no sign-up or paywall. It runs entirely in your browser and keeps working offline; the numbers you enter never leave your device.
How accurate is it? It uses the standard published formula for construction loan. Results are estimates for planning — not financial, tax, medical, engineering, or legal advice.