Real Estate & Mortgage
Construction Loan Draws
Track interest-only draws during a construction loan and the total interest before conversion.
Your inputs
Change any value to update the result instantly.
Total interest reserve needed
28,333.3333
Amount per draw
1,00,000
Final drawn balance
5,00,000
Construction period (months)
12
Drawn balance and cumulative interest
| Period | Input / invested | Calculated value |
|---|---|---|
| 1 | 708.3333 | 1,00,000 |
| 2 | 1,416.6667 | 1,00,000 |
| 3 | 2,833.3333 | 2,00,000 |
| 4 | 4,250 | 2,00,000 |
| 5 | 6,375 | 3,00,000 |
| 6 | 8,500 | 3,00,000 |
| 7 | 11,333.3333 | 4,00,000 |
| 8 | 14,166.6667 | 4,00,000 |
| 9 | 17,708.3333 | 5,00,000 |
| 10 | 21,250 | 5,00,000 |
| 11 | 24,791.6667 | 5,00,000 |
| 12 | 28,333.3333 | 5,00,000 |
Formula and working
Interest each month = drawn balance × rate ÷ 12, growing as draws are disbursed
- 1
Collect the inputs
Total construction budget = 500,000; Interest rate during construction = 8.5 %; Construction period (months) = 1 years; Number of draws = 5
- 2
Apply the formula
Interest each month = drawn balance × rate ÷ 12, growing as draws are disbursed
- 3
Result
Total interest reserve needed = 28,333.3333
Frequently asked questions
Important limitation
This is an educational estimate based only on the values and formula shown. Verify current rates, rules, units, and professional standards before relying on the result. It is not personalized financial or investment advice.
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