Construction Loan Repayment Calculator

How construction loan repayments work

Construction loans work differently to standard home loans. During the build, you only pay interest on the money drawn down at each progress payment stage — not the full loan amount. Once construction is complete and the final inspection is done, the loan typically converts to a standard principal-and-interest mortgage.

This calculator shows your repayments after conversion. To see the interest-only costs during the build period, use the Interest During Build calculator.

Fixed vs variable rate construction loans

Most construction loans are variable rate during the build phase (typically 6–12 months), then you can fix the rate once construction is complete. Fixing gives certainty on repayments; variable lets you make extra repayments and use an offset account.