Construction Loan Draw Schedule Calculator
A construction loan pays your builder in draws as each stage of work is finished and inspected. Your draw schedule sets how much is released at each stage. Because interest is usually charged on the money drawn so far, the schedule also shapes what you pay during the build. Enter your builder's schedule to see the balance and interest month by month.
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How a draw schedule works
Before closing, your builder gives the lender a draw schedule, sometimes called a schedule of values. It lists each stage of work and how much of the loan will be released when that stage is done. At each draw, an inspector usually confirms the work before the lender pays.
Interest during the build is usually figured on the money drawn so far. So a schedule that pays out more early in the build costs more in interest than one that pays out later.
Worked example: the NAHB stage costs
The NAHB 2024 Cost of Constructing a Home survey breaks the average construction cost of $428,215 into stages. If a lender paid each stage when it was finished, the amount drawn so far would grow like this:
| Stage | Average cost | Drawn so far after this stage |
|---|---|---|
| Site work (permits, fees, design) | $32,719 | $32,719 |
| Foundations | $44,748 | $77,467 |
| Framing | $70,982 | $148,449 |
| Exterior finishes | $57,510 | $205,959 |
| Major systems rough-ins | $82,319 | $288,278 |
| Interior finishes | $103,391 | $391,669 |
| Final steps | $27,710 | $419,379 |
| Other | $8,835 | $428,215 |
Each month, interest is charged on the "drawn so far" amount, not on the full loan. To model your own build, divide each stage's cost by the loan amount to get its share, enter the month it's paid, and add your lender's rate. Figures may not add exactly because of rounding in the survey.
Frequently asked questions
What is a typical construction loan draw schedule?
Many schedules release money in five to seven stages, such as site work and foundation, framing, rough-ins, drywall and finishes, and final completion. Your builder and lender set the exact stages.
How is interest charged on construction loan draws?
Most lenders charge interest on just the money drawn so far. As more draws are paid, the balance and the monthly interest go up.
Who approves each draw?
The lender usually sends an inspector to confirm the work is done before releasing each draw. Some lenders also ask for lien waivers from the builder and subcontractors.
Can the draw schedule change during construction?
Sometimes. Change orders or delays can shift timing, but the lender usually has to approve changes to the schedule or the budget.
What happens to unused loan money?
If the build comes in under budget, any undrawn amount usually isn't borrowed, so you don't pay interest on it. Ask your lender how unused funds are handled at conversion.
More construction loan calculators
Related guides
- How construction loan draws work
- How detailed must a construction loan scope be?
- Do you make payments during a construction loan?
Sources
- NAHB, Cost of Constructing a Home, 2024, construction cost breakdown
- Fannie Mae Selling Guide B5-3.1-02
This calculator is for general education. Results are estimates based on the numbers you enter, not an offer of credit, a rate quote, or a commitment to lend. Requirements vary by lender, loan program, and location.