MBReviewed by Mike Basti, Mortgage Broker & Founder · NMLS #377740
How it works
Total cost = land + hard + soft + contingency. Max loan = LTC × total cost. Equity gap = total − loan. Carry ≈ loan × rate × term × ~50% (draws ramp from $0 to full). It also estimates an interest reserve. See Requirements.
California Construction Loan Calculator
Max loan (at your LTC)
$0
Total project cost$0
Equity you bring (gap)$0
Equity as % of cost0%
Est. interest-only carry (build)$0
Est. interest reserve to set aside$0
Avg. monthly carry (approx)$0
Reading your result
- Max loan is your LTC × total cost — the most a lender funds at that loan-to-cost.
- Equity gap is what you contribute in cash or land value. Owned land at cost basis can count toward it.
- Carry estimates interest during the build on the average drawn balance (~half the loan, since draws ramp up).
- Interest reserve is roughly that carry — money lenders often want set aside so payments are covered while the property earns nothing.
Expert tip: The number to stress-test isn't the loan — it's the equity gap plus reserves. That's the real cash you need on day one, and it's almost always larger than first-time builders expect once soft costs and contingency are in. Before you fall in love with a lot, run it here with honest soft-cost and contingency numbers, then add the interest reserve. If the total cash still works, the project is fundable. We'll confirm the sizing against live lender terms and often find a structure that lowers what you bring. Confirm my sizing →
Reviewed by the licensing team at Save Financial, a California-licensed mortgage brokerage (NMLS #377740, DRE #01875766) founded in 2009 and serving all 58 counties from offices in Newport Beach and Marina del Rey.