Construction Loan Calculators

Construction Loan Calculators and Construction Loan Payment Calculators for Stand Alone, Construction to Permanent and Fix and Flip Loans

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Home Construction Loan Amount is calculated by including acquisition cost, hard and soft costs of construction, and prepayments using this calculator.

A simple interest calculator is used to calculate Construction Loan Payments, but the method depends on the the type of the loan.

Qualifying for a specific loan amount depends on the LTV and LTC of the specific program, borrower’s credit profile and income as well as documentation level.

Qualifying Requirements for Construction Loans

It can be challenging to make payments on both the current and future homes. Including an interest reserve account in a construction to permanent loan will help since during construction only current housing expenses are paid.

The biggest impact of an interest reserve account is in qualifying for the loan since only the future payment is used in qualifying ratios.

Typically, Fix to Flip and Hard Money loans do not offer interest reserve accounts.

Click here for more informatiom on qualifying for a construction loan

The calculation will be different depending on whether a New Home Construction Loan, a Fix and Flip loan or a Hard Money Construction Loan, See detailed explanations and calculator here.


Construction Loan Calculators

  • The construction loan amount is based on the value of the lot or existing house, if a major remodel project, plus all the soft and hard construction costs and interest reserves, if applicable.

  • Ratios used to calculate the loan amount are LTFV (Loan to Future Value), sometimes called ACV (After Completion Value), and LTC (Loan to Cost).

Construction to Permanent Loan Calculator

  • This same calculator is used to calculate the loan amount.

  • After the project's completion, the loan converts to a permanent 15 or 30-year fixed or adjustable mortgage loan.

Almost every lender will use a slightly different version of this calculator to determine the loan amount for a construction loan.

It is almost impossible to arrive at the loan amount, and cash requirement with a single calculation as the variables are numerous. There is always a need to review the numbers and readjust them to calculate the final loan amount.

Remember that LTV (Loan to Value Ratio) is based on the future value, and that value will depend on the construction loan program, which will also be governed by the LTC (Loan to Cost Ratio).

All fields are required, even if "zero".

Click on the question mark icons for an explanation of the field's requirements.

Construction Loan Payment Calculator

How to Calculate Interest Only Payments of a Home Construction Loan During Construction

Interest Only Construction Loan Payment Calculator
Interest Rate:
Monthly interest payment:

Aconstruction loan's payments are based on the loan amount drawn during construction. If Hard Money or Fix and Flip loan, interest is charged on the entire loan amount.

It is, therefore, difficult, if not impossible, to accurately estimate the payments as the loan amount is subject to change at any time.

Furthermore, no payments are usually made during construction but applied to the payment reserve account set up and included in the loan amount. A good approximation will be to:

  • Take 70% of the loan amount.
  • Use this calculator to figure out monthly payments.
  • Multiply the result by 12 to get the total approximate interest.

Fix and Flip or Hard Money loan Calculator

  • Take the full amount of the loan.
  • Use this calculator to figure out your monthly payments.
  • Multiply by the term of the loan.

A basic and straightforward to use Construction Loan Amount Calculator is available here.

Construction loans that include an interest reserve account:

  • Help your cash flow, as you are not saddled with two housing payments.
  • Allow you to qualify for a larger loan since your debt ratio is not included in current housing expenses.

Construction loans have much more detailed calculations than a simple purchase or refinance mortgage loan amount.

Construction lenders calculate the actual construction loan amount after you answer some simple questions.

The interest-only calculator on this page uses JavaScript. If you have set your browser not to allow JavaScript, you will get a warning asking if you would like to enable the script to run. All you do is let the script run temporarily, and the calculator will work.

Qualifying for a mortgage loan involves debt ratio calculations that vary slightly from one financial institution to the next. In most cases, the borrower's debt ratio is analyzed using the fully amortized payment.

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