Construction Loan Calculator
Calculate your monthly payments for construction loans during the building phase and after converting to a traditional loan. Plan your project financing effectively.
Calculate Your Construction Loan
What is a Construction Loan?
A construction loan is a short-term loan used to finance the building of a property. Payments are typically interest-only during construction, converting to a traditional loan upon project completion.
How to Calculate Construction Loan Payments?
Construction loan payments involve two phases:
- During Construction: Interest-only payments based on the loan amount and construction interest rate.
- After Construction: Traditional EMI payments calculated using the loan amount, long-term interest rate, and loan term.
Why Use a Construction Loan Calculator?
- Plan Finances: Estimate payments during and after the construction phase.
- Manage Cash Flow: Understand monthly obligations to avoid financial strain.
- Compare Options: Evaluate different interest rates and loan terms.
Example Calculation
Assume you take a ₹10,00,000 construction loan with:
- Construction interest rate: 7%
- Construction term: 12 months
- Long-term interest rate: 8%
- Long-term loan term: 20 years
During Construction: ₹5,833.33 monthly payment
After Construction: ₹8,364.78 monthly EMI