Ground-up construction planning

Construction loan calculator

Estimate a ground-up construction loan using cost and completed value. Compare land ownership, existing debt and the funding gap before requesting terms.

Work out what your budget asks of the financing. This planning calculator separates the project cost basis from money still needed, then applies your own cost and value limits.

For business-purpose builds, spec homes and teardown projects. All starting figures are hypothetical assumptions, not Stonehaven program terms. Stonehaven is your mortgage broker.

1. Land and ownership

Land position

Land purchase price or accepted land basis ($)For owned land, use the basis accepted for financing, not automatically today’s market value.

Existing land debt to repay ($)Do not subtract this from the land basis. It is a separate use of the new loan.

2. Remaining project budget

Remaining hard costs ($)Construction, demolition and site work still to be paid.

Remaining soft costs ($)Design, engineering, permits and other eligible indirect costs.

Remaining contingency ($)A budget allowance, not permission to increase the loan.

Financing and carry allowance ($)Include estimated interest, fees, insurance and taxes once. Interest is not calculated automatically.

Additional costs outside eligible budget ($)Excluded or unfinanced expenses. Do not include them again above.

3. Your financing assumptions

Estimated completed value ($)A planning estimate. Actual financing uses the required appraisal and review.

Assumed maximum loan-to-cost (%)Enter the limit you want to test, from 0.1% to 100%.

Assumed maximum completed-value LTV (%)Enter your assumption. Different programs use different limits.

See my result

What if the build costs more or the appraisal is lower?

These tests keep the base loan ceiling fixed when hard costs increase. A lower completed value may reduce proceeds before closing. No increase in the loan is assumed. Treat the hard-cost increase as an additional unfunded overrun, without reusing the contingency already in your budget.

What if the build costs more or the appraisal is lower?
Planning scenario	Modeled loan	Funding gap
Your base assumptions	-	-
Hard costs 10% higher	-	-
Completed value 10% lower	-	-
Both changes together	-	-

How the construction loan calculation works

Eligible cost basis: accepted land basis plus remaining hard costs, soft costs, contingency and financing allowance.
Loan ceilings: cost basis multiplied by your LTC limit, and completed value multiplied by your LTV limit.
Uses still to fund: remaining budget plus the purchase price if buying, or existing land payoff if already owned.
Modeled loan: the lowest of the two ceilings and the uses still to fund. This tool does not model cash-out.
Funding gap: uses still to fund less the modeled loan, plus costs excluded from the eligible budget.

Land already owned is included in the cost basis but is not a new cash purchase. Its existing payoff is a cash use. This distinction prevents counting the land contribution twice. Already-paid design fees, multiple liens, other collateral and complex capital stacks require a separate sources-and-uses review.

Example: owned land and a $1.6 million remaining budget

Assume free-and-clear land has an accepted basis of $400,000. Remaining costs are $1.2 million hard costs, $200,000 soft costs, $100,000 contingency and $100,000 financing allowance. The cost basis is $2 million. At an assumed 75% LTC, the cost ceiling is $1.5 million. A $3 million completed value at an assumed 65% LTV gives a $1.95 million value ceiling.

The model uses the lower $1.5 million loan, leaving $100,000 of the remaining budget unfunded. Add a $200,000 land payoff and the gap becomes $300,000. Buying the same land for $400,000 instead produces a $500,000 gap. These examples exclude any additional costs outside the entered budget.

Questions about your result

Can 100% of the construction budget still be less than 100% LTC?

Yes. With $400,000 of accepted land basis and $1.6 million of remaining costs, a $1.6 million loan is 80% of the $2 million total cost basis. It covers the remaining budget without financing the entire cost basis.

Does this estimate cash due at closing?

No. It estimates the overall funding gap. The closing advance, payoff, fees, equity funding sequence, retainage and reimbursement schedule determine when cash is needed.

Does owning land guarantee that no cash is needed?

No. Confirm the accepted basis, existing debt, costs excluded from financing and cash needed between draws. A property can contribute equity and still require cash during construction.

Methodology and sources

The formulas and worked examples are Stonehaven planning calculations. The OCC’s commercial real estate handbook explains LTC, LTV and construction budget review; it is banking guidance, not a list of Stonehaven loan terms. OCC: Commercial Real Estate Lending.

Methodology reviewed October 28, 2026 · Editorial standards · Meet the team

Discuss my construction project Compare construction term sheets