Construction Loan Downpayment Calculator

Why Estimating Your Down Payment Matters

‍

Construction loans are short-term and riskier for lenders, so they usually require larger down payments—often 20% or more. Knowing what you’ll need in advance can help you:

‍

• Secure better loan terms
• Prepare financially for the project
• Avoid unexpected costs during construction
• Compare multiple loan options with confidence

‍

Understand How Much You’ll Need for Your New Construction Project

‍

If you're planning to build a new home or commercial space, understanding the down payment and loan structure is critical. Unlike traditional mortgages, construction loans are typically interest-only during the build and require a larger upfront payment. This calculator helps you estimate:

• How much you’ll need for a down payment
• The loan amount you’ll be financing
• Your monthly interest-only payments
• The total interest paid over the loan term

‍

What the Calculator Covers

‍

Here’s what you’ll input and what the calculator will output:

Inputs:

• Estimated total construction cost
• Down payment percentage
• Interest rate (annual)
• Loan term (in months)

‍

Outputs:

• Total down payment required
• Loan amount
• Monthly interest-only payment
• Total interest over the term

‍

How Construction Loans Work

‍

Unlike traditional mortgages, construction loans are typically structured as interest-only loans during the construction period, and are later converted into permanent financing or paid off with a new loan.

This means your monthly payments during construction are interest-only, based on the outstanding balance—making it essential to understand how much interest you'll pay throughout the term.

‍

How ArcSite Helps Builders Win Jobs Faster

‍

Visually estimate projects and build proposals instantly. ArcSite lets contractors draw out the lot or structure, apply materials and labor costs, and automatically generate:

‍

• Precise estimates based on layout drawings
• Instant proposals with customer-ready agreements
• Mobile workflows on iPad or Android tablets

‍

Once you've sketched the build area, ArcSite can output a complete estimate with your products and margins baked in—ready to win the job.

‍

👉 Get a free trial of ArcSite’s construction estimate software

‍