Use this construction loan calculator to estimate your monthly loan payments and total interest costs for your building project.

## Construction Loan Calculator

### How to Use the Construction Loan Calculator

To use the construction loan calculator, fill in the following fields:

- Loan Amount – The total amount of money you are borrowing.
- Annual Interest Rate – The interest rate per year on the loan.
- Loan Term – The length of the loan in years.
- Number of Draws – The number of times you will draw funds from the loan amount.

### How It Works

The construction loan calculator takes the total loan amount and distributes it equally across the specified number of draws. It calculates the total interest based on the annual rate and loan term, then divides this by the number of draws to provide the interest per draw. Finally, it gives you the total cost of the loan, which is the sum of the loan amount and the total interest.

### Limitations

This calculator provides a simplified estimate and does not account for compounding interest over time or varying draw amounts. It assumes interest is calculated on the total loan amount for the full term, which may not reflect the specific conditions of your loan. For a detailed breakdown and an accurate payment schedule, consult with your lender or a financial advisor.