Construction Loan Draw Schedule Calculator

Work out construction loan draw schedule instantly with clear inputs, formula shown and shareable results.

About Construction Loan Draw Schedule Calculator

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.

Formulas

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

Worked example

With the default values below, Construction Loan Draw Schedule Calculator returns Interest during construction of $450,000.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Total loan amountminimum 0.01: 5,000,000
Number of equal drawsaccepts 1–1,000: 5
Annual interest rateaccepts 0.01–40 %: 12 %
Months between drawsminimum 1 months: 3 months

Results

Interest during construction: $450,000.00
Amount per draw: $1,000,000.00
Average balance outstanding: $3,000,000.00
Total repayable at completion: $5,450,000.00

Step by step

1Values used
2Interest during construction
3Average balance
4Interest during construction= 450,000.00
5Amount per draw= 1,000,000.00
6Average balance outstanding= 3,000,000.00
7Total repayable at completion= 5,450,000.00

Assumptions and limits

The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation, tax or fees or charges into account.
Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

How is the Construction Loan Draw Schedule figure worked out?

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.

Why is this cheaper than a term loan for the same amount?

The average balance outstanding over the construction period is only about half the facility. Interest follows the average balance, not the commitment.

What values do I need to enter?

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.