# How to calculate interest only payments on construction loan?

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Asked By: Justine Jacobs

Date created: Thu, Mar 18, 2021 7:16 AM

Date updated: Mon, May 22, 2023 7:28 AM

Content

Video answer: Adding an "interest only" period to an amortization schedule…

## Top best answers to the question «How to calculate interest only payments on construction loan»

Interest on a **construction loan** is a very simple formula that anyone can calculate. If your current interest rate is 7.75% you simply take the balance that has been drawn or borrowed. You then multiply this balance by . 0775.

#### How do you calculate interest on a construction loan?

- Interest on a construction loan is a very simple formula that anyone can calculate. If your current interest rate is 7.75% you simply take the balance that has been drawn or borrowed. You then multiply this balance by .0775. Then take that number and multiply it by 12 ( 12 months in a year ).

Video answer: Tutorial: construction draw and interest calculation model