Construction Loan
Calculator
Model your draw schedule, estimate interest costs, and plan your budget — for custom builds and renovations.
Why I Built This
I'm a custom home builder, not a lender. I built this tool because my clients are constantly asking, “What do I owe and when?” Interest-only construction loans are notoriously confusing, and I wanted to create a “no-surprises” way for you to map out your dream home journey.
DreamHome.loans is an estimation tool. We do not provide financing. All loan terms, rates, and approvals are handled by third-party licensed mortgage professionals.
For educational purposes only. Not financial advice. Consult a licensed mortgage professional.
Loan Type
Project Details
Total Project Budget
Down Payment
Auto-set to 20% — editable
Land Value
Counts toward down payment
Contingency Buffer
Safety net for surprises
Pre-Construction Costs
~8% of budget · paid before breaking ground
Loan Terms
Interest Rate
5.75%Example rate for planning purposes only. Actual rates are determined by your lender.
Construction Period
12 months🏠 How construction loans work: A construction loan typically begins after permits have been issued and you're ready to break ground. If you're purchasing land first, you may need a separate lot loan to hold the land — interest on the construction loan itself doesn't start until draws begin. Once construction is complete, the loan converts to a permanent mortgage.
Built Specifically for Construction Loans
Most online calculators treat construction loans like standard mortgages. They're not — and the math is completely different. Here's what sets ours apart.
Draw Schedule Modeling
Phase-by-phase fund disbursement
Interest-Only Payments
Per-draw interest accrual
Land Equity as Down Payment
Factors in owned land value
Renovation Loan Mode
Purchase + renovation split
Mobile-First UX
Touch-friendly inputs
How Construction Loans Work
Understanding the process helps you plan better and save money.
Get Pre-Approved
Work with a licensed lender to get pre-approved based on your project plans and budget.
Draw Funds as You Build
Receive funds in draws as construction milestones are completed and inspected.
Convert to Permanent
After construction, the loan converts to a traditional 15 or 30-year mortgage.
Educational Guides
Learn everything about construction financing before you start.
Construction Loan Down Payments
Learn how much you need to put down for a construction loan.
Read guide100% Free
No hidden costs
Private & Secure
Your data stays safe
Accurate Estimates
Industry-standard formulas
Educational
Learn as you plan
Important Disclaimer
The calculations and information provided are for educational and directional purposes only. This is not financial advice. Actual loan terms, rates, and eligibility will vary based on your individual circumstances, credit profile, and lender requirements. Always consult with a licensed mortgage professional or financial advisor before making any financial decisions.