Construction loan calculator for spec and infill builds
Land, hard costs, soft costs and the finished value in. The loan, your equity, the draws and the margin left after loan costs out.
Builds24.9% margin
Loan you can size to
$514,250
Capped by cost. You bring $90,750 in cash or land equity.
- Total project cost
- $605,000
- Loan-to-cost
- 85.0%
- Loan-to-completed-value
- 59.8%
- Toward land at closing
- $49,250
- Construction draws
- $465,000
- Your equity in
- $90,750
- Points
- $10,285
- Interest over the build
- $30,993
- Margin after loan costs
- 24.9%
Interest assumes draws arrive evenly over the build. The lender also holds back at least one month of interest as a reserve, and limits the land advance to 75% of the lower of land price or value (60% until permits are approved).
How the sizing works
The lender caps the loan two ways and uses the lower: a share of everything the project costs, and a share of what the finished home will appraise for. On most infill builds with a healthy margin, cost binds. When the margin is thin, the 70% value cap binds instead, and the calculator's "capped by" line will say so. That is the lender telling you the project is tight.
Margin here is the completed value minus land, hard and soft costs, points and interest, as a share of completed value. It is before selling costs and before any contingency you carry yourself. See the full terms on the construction loans page.
Questions people ask
How much can I borrow for a spec home?
The lower of 85% of total project cost (90% if you have finished three or more similar builds) and 70% of the appraised completed value. Total cost is land plus hard costs plus soft costs.
Can my land count as my down payment?
Yes. Land you own is counted at the lower of its price or value, so equity in the lot can cover part or all of what you would otherwise bring in cash.
What is loan-to-cost on a construction loan?
The loan divided by the total project cost. A $514,250 loan on a $605,000 project is 85% loan-to-cost.
Is interest charged on the whole loan from day one?
No. Interest runs on what has been advanced: the land advance from closing, and each construction draw from the day it funds. The calculator assumes the draws arrive evenly over the build.
Numbers look right?
Send the deal. We check it against the lender's terms and come back with a loan.