Construction Loan Calculator
Estimate facility size and interest using an LTC limit and evenly phased monthly draws.
Calculated directly from the assumptions shown.
Continue in the full model.
Move from this screening result to the complete Construction Financing Model.
Get the model · €49 incl. VATHow the Construction Loan calculation works
Facility = eligible cost × LTC. Estimated interest uses the average drawn balance over the construction period.
Example calculation
€10m of eligible cost at 65% LTC creates a €6.5m facility, drawn evenly over 24 months.
How professionals use the result
Use this for first-pass sizing. A full draw schedule should reflect actual monthly costs, lender eligibility and interest funding.
Common mistakes
- Charging interest on the full facility from day one
- Ignoring fees
- Including ineligible costs
- Double-counting capitalised interest
Construction Loan Calculator FAQs
What does the Construction Loan calculator measure?
Estimate facility size and interest using an LTC limit and evenly phased monthly draws.
What formula does the Construction Loan calculator use?
Facility = eligible cost × LTC. Estimated interest uses the average drawn balance over the construction period.
Is the result suitable for a final investment decision?
Use it as a transparent screening calculation. Validate deal-specific tax, timing, financing and legal assumptions in a complete underwriting model before making a decision.
Do I need an account?
No. The calculator is free and runs in your browser. FormulaPlanet does not store your projects, inputs or results.
Is any input sent publicly?
No calculation is public by default. A shareable link is only created when you explicitly choose to copy one; that link contains the assumptions shown in its URL.
Why might my spreadsheet give a different answer?
Differences usually come from timing, compounding, sign conventions, fees or a different definition of the numerator or denominator. Match every period and definition before comparing.
What should I review alongside this result?
Use this for first-pass sizing. A full draw schedule should reflect actual monthly costs, lender eligibility and interest funding.
Which mistakes are most common?
Charging interest on the full facility from day one; Ignoring fees; Including ineligible costs; Double-counting capitalised interest.