Construction Calculator
Model a construction loan with partial disbursements and view the complete schedule.
This calculator models a construction project end to end: how much of your own capital you need, how much the loan funds across land and construction, and what profit is left after the sale.
It's for the developer weighing whether to take on a project and who needs to know, before committing capital, whether the deal pencils out and whether it's financeable.
Enter the land value, construction cost and estimated sale value. Everything else comes preloaded with the program's standard parameters and you can adjust it.
For example: $150,000 of land with 60% financed, $350,000 of construction and a $900,000 sale over 17 months shows you put in $82,674 at closing and what profit is left at the end.
Project Parameters
These three numbers are enough for a read. Everything else comes preloaded with the program's standards.
Project timeline17 months across permits, build and sale
Total: 17 months. Interest accrues across all three phases.
FinancingLTC 85% · 10.5% annual · land 60%
Access to every product at standard leverage.
Construction budgetSoft costs 10% · contingency 10%
Costs and exit2% origination · 7% selling
Is it worth doing?
The project pencils out and the program funds it.
- You put in at closing
- $82,674
- Total own capital
- $142,174
- Profit
- $161,754
- Annualized return
- 80.31%
Unfunded land + closing costs
Everything you put in across the project
Net of sale, over 17 months
On your own capital
Project Summary
Total interest
$48,572
Loan closing
$22,674
Total project cost
$675,246
Equity required
$142,174
Projected profit
$161,754
ROI on equity
113.77%
Completed value
$900,000
Equity required is the capital you contribute upfront: the portion of land and construction the loan doesn't cover, plus loan closing costs, paid out of pocket on closing day.
Underwriting Read
FinanceableHow this project looks against the actual parameters of the program we place deals through.
| Metric | Your model | Threshold | Status |
|---|---|---|---|
| LTCLoan over total project cost | 78.9% | ≤ 85% | Within range |
| LTARVLoan over completed value | 59.2% | ≤ 70% | Within range |
| Day-1 land drawOf land value, funded on closing day | 60.0% | ≤ 60% | Within range |
| Total termThe program lends 9 to 18 months | 17 months | ≤ 18 months | Within range |
| Borrower equityOwn capital over total cost | 21.1% | ≥ 10% | Within range |
| Profit marginProfit over total cost | 24.0% | ≥ 10% | Within range |
Thresholds come from the program's leverage matrix by borrower experience, not a generic rule. Values the program flags as case-by-case aren't used here: a deal that exceeds them isn't dead, it needs approval. This isn't a credit decision — let's talk and structure it.
Capital Stack — Sources & Uses
Where every dollar in the project comes from (sources) and what it's applied to (uses). Both sides balance by definition.
Uses — application of funds
- Land
- $150,000
- Construction
- $350,000
- Soft costs
- $35,000
- Contingency
- $35,000
- Interest reserve
- $48,572
- Carry costs
- $34,000
- Loan closing costs
- $22,674
- Total Uses
- $675,246
Sources — origin of funds
- Loan — land (day 1)
- $90,000
- Loan — construction draws
- $394,500
- Loan — interest reserve
- $48,572
- Developer equity
- $142,174
- Total Sources
- $675,246
The loan funds the LTC percentage of development cost plus an interest reserve covering interest through the construction period: you don't pay that interest out of pocket month to month, it draws against the loan. Carry costs and closing costs do come out of your capital, which is why equity to contribute exceeds the simple gap between cost and loan.
Take this analysis with you
I'll email it to you with all the numbers, or share it on WhatsApp with your partner. The link reopens the model exactly as you left it.
Investment Flow
Land → Construction → Completed property → Result
You put in at closing
$82,674
You put in during the build
$59,500
You collect on sale
$837,000
Projected profit
$161,754
Draw Schedule
| Draw # | Amount | Cumulative | Period Interest | Cumulative Interest |
|---|---|---|---|---|
| 1 | $78,900 | $168,900 | $2,997 | $5,392 |
| 2 | $78,900 | $247,800 | $4,397 | $9,789 |
| 3 | $78,900 | $326,700 | $5,797 | $15,585 |
| 4 | $78,900 | $405,600 | $7,197 | $22,782 |
| 5 | $78,900 | $484,500 | $8,597 | $31,379 |
Disbursement Timeline
Your investment of $675,246 would generate $161,754 in 17 months.
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