- Enter Project Cost: Input total project budget (e.g., $50,000,000).
- Set Loan Terms:
- Loan-to-Cost Ratio (%) (e.g., 75%)
- Equity Amount ($) (e.g., $12,500,000)
- Interest Rate (%) (e.g., 6.5%)
- Loan Term (months) (e.g., 24)
- Click “Calculate”: Instantly view:
- Maximum Loan Amount
- Interest-Only Payments
- Total Interest Cost
Accurate financing estimates are critical for developers, project sponsors, and investors managing commercial real estate, infrastructure, or industrial projects.
This free construction loan calculator helps you model loan amounts, interest costs, and payment schedules tailored for projects requiring $10M+ in financing.
Our tool simplifies complex calculations while addressing commercial developers’ needs.
Understanding the Results
Your construction loan calculator provides three key outputs for large-scale projects:
Maximum Loan Amount
Calculated as:
(Total Project Cost × LTC Ratio) – Equity Contribution
Example: A $800M project with 75% LTC and $200M equity qualifies for a $600M loan.
Interest-Only Payments
Calculated as:
(Total Project Cost × LTC Ratio) – Equity Contribution
Example: A $800M project with 75% LTC and $200M equity qualifies for a $600M loan.
Loan-to-Cost Ratio
Indicates project leverage. Higher ratios (e.g., 80%) require stronger guarantees.
Construction Loan Example: $800M Hotel Development
Project Parameters
- Total Cost: $800M ($600M construction, $150M land, $50M soft costs)
- Financing Structure:
- 75% LTC → $600M loan
- $200M equity (25%)
- 7.25% interest rate
- 36-month term (24-month interest-only period)
Calculator Outputs
- First Interest Payment: $3.625M/month ($600M × 7.25% ÷ 12)
- Total Interest: $87M ($3.625M × 24 months)
- Final Draw Payment: $2.17M (assuming 40% balance remaining)
Why This Matters:
- Demonstrates how $200M equity reduces lender exposure
- Shows impact of interest-only periods on cash flow
Key Construction Loan Terms Explained
LTC (Loan-to-Cost) Ratio
The maximum percentage of project costs a lender will finance. For $100M+ projects, expect 65-80% LTC.
Phased Draws
Funds are disbursed in stages (monthly or against milestones like foundation completion). Requires:
- Monthly construction progress reports
- Lien waivers from contractors
Takeout Financing
Permanent financing that replaces the construction loan post-completion. Typically involves:
- Lease-up or occupancy requirements for commercial projects
- Refinancing at lower rates
Factors That Affect Your Construction Loan Rates and Terms
- Project Type
- Hotels: Often require 50%+ pre-leasing
- Industrial: May need anchor tenant commitments
- Sponsor Experience
- First-time developers face lower LTC ratios (e.g., 65% vs 80%)
- Geographic Risk
- Emerging markets may require 10%+ contingency reserves
- Interest Rate Environment
- Rising rates increase total interest costs significantly at this scale
Next Steps for Your Project
- Model Scenarios
Test different LTC ratios (e.g., 70% vs 75%) and equity levels using the calculator. - Prepare Documentation
Lenders for $100M+ projects typically require:- Full construction timeline
- General contractor guarantees
- Pre-lease agreements (if applicable)
- Compare Lender Terms
Use your calculator results to evaluate:- Interest-only period length
- Draw schedule flexibility
Need tailored financing?
Ready to finance your project? Explore construction & development financing solutions for loans starting at $100M, including project finance options.