Work out construction loan draw schedule instantly with clear inputs, formula shown and shareable results.
A construction loan is drawn in stages, so interest accrues only on what has been advanced. Each draw carries interest for the months remaining until completion, and summing across the draws gives interest during construction, a real cost that is often capitalised into the project budget.
Interest during construction
Sum over draws of draw amount x rate x months outstanding / 12
Average balance
Weighted balance = sum(draw x months) / total months
Sum over draws of draw amount x rate x months outstanding / 12. A construction loan is drawn in stages, so interest accrues only on what has been advanced.
The average balance outstanding over the construction period is only about half the facility. Interest follows the average balance, not the commitment.
This calculator takes 4 inputs: Total loan amount, Number of equal draws, Annual interest rate, Months between draws. The pre-filled defaults are a realistic worked example — replace them with your own site or project figures.