Map out every draw by phase, see interest accruing in real time, and know exactly what you'll owe before you break ground.
Typical construction draws occur every 30–45 days
Your draw schedule will appear here
Fill in your loan details and phases on the left, then click Calculate Schedule.
A construction loan draw schedule is the timeline and breakdown of how loan funds are disbursed to a borrower or general contractor over the course of a construction project. Rather than releasing the full loan amount at closing, lenders disburse funds in stages — called draws — as specific milestones or phases of construction are completed and verified.
This structure protects the lender by ensuring money is only released once work is actually done. It also protects the borrower from over-borrowing early in the project — since interest typically accrues only on the drawn balance, not the full loan commitment.
The draw process typically follows these steps:
Most residential construction loans use 5–10 draws. Commercial and larger ground-up development projects may have 12 or more draws tied to detailed line-item budgets.
Align draws to real completion milestones
Tie each draw to a verifiable, inspectable milestone — not just a calendar date. Foundation pour complete, framing 100% dried in, rough MEP passed inspection. Vague milestones lead to disputes and delayed funding.
Build a 10% contingency into your budget before requesting draws
Change orders and scope creep are routine. If your draw schedule consumes 100% of the loan with no buffer, a single unexpected cost forces you to renegotiate mid-project — which lenders view unfavorably.
Understand how interest is calculated on your specific loan
Most construction loans charge interest only on the outstanding drawn balance (not the full commitment). However, some use a blended or all-in structure. Confirm with your lender before signing — the difference can be tens of thousands of dollars on a large loan.
Track every draw against your original budget line items
Don't just look at total drawn vs. total loan. Break it down by trade: framing, plumbing, electrical, finishes. If framing is 20% over budget by draw 2, you need to know before you've drawn down funds needed for finishes.
Document everything before submitting a draw request
Lenders require documentation — invoices, conditional lien waivers from subs, inspection sign-offs. Missing any one of these can delay a draw by weeks. Build documentation into your site superintendent's weekly checklist.
Submit draw requests proactively, not reactively
Don't wait until you've run out of cash to request a draw. The inspection and approval cycle takes 5–14 days at most lenders. Build that lead time into your schedule so you always have runway.
While every project is different, here are common draw allocations for a standard single-family or small multifamily residential construction loan:
| Phase | Typical % | What's Included |
|---|---|---|
| Foundation | 10–15% | Excavation, footings, slab or basement walls, waterproofing |
| Framing | 15–20% | Structural framing, roof sheathing, exterior sheathing, windows & doors rough-in |
| Rough-In (MEP) | 15–20% | Rough plumbing, rough electrical, HVAC ductwork, insulation |
| Drywall & Exterior | 10–15% | Drywall hang & tape, exterior cladding, roofing complete |
| Finishes | 20–25% | Flooring, cabinetry, tile, trim, paint, fixture installation |
| Final / Certificate of Occupancy | 10–15% | Final MEP trim-out, punch list, CO inspection, landscaping |
These ranges are starting points. Your lender will have their own required draw schedule tied to the approved construction budget. Larger commercial projects typically use a much more granular schedule — sometimes 15–20 draws — tied directly to the sworn construction statement or AIA G702/G703 billing format.
Go beyond a static calculator. TerraLine tracks every draw against your budget in real time, alerts you to overruns before they cascade, and generates lender-ready draw reports in one click.
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