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Capitalised interest, exposed
Construction Drawdown
Construction facilities draw in stages and capitalise interest as you go. Enter the facility, your draw schedule and rate — see capitalised interest by stage, line fees, QS costs and peak debt.
$
% p.a.
months
From first draw to practical completion.
% p.a.
Charged on the facility you haven't drawn yet.
$
Per progress inspection — typically $500–$1,500.
Drawdown schedule
% of facility and the month each stage is drawn.
%
mo
%
mo
%
mo
%
mo
%
mo
Schedule totals 100%.
Total cost of finance
$135,583
Capitalised interest, line fees and QS inspections combined.
Base / slab — $375,000 @ mo 1$33,750
Frame — $500,000 @ mo 3$37,500
Lock-up — $625,000 @ mo 6$32,813
Fixing — $500,000 @ mo 9$15,000
Completion — $500,000 @ mo 12$3,750
Capitalised interest$122,813
Line fee on undrawn$6,771
QS inspections (5)$6,000
Total cost of finance$135,583
Peak debt at completion$2,622,813
Capitalised interest of $122,813 is debt you repay on settlement or sale — it eats into project margin before the first dollar of profit. Earlier, larger draws cost more, so the draw schedule itself is a lever.
Assumptions & method
- Interest is simple on the cumulative drawn balance from each draw month to build end (a screening approximation, not a daily-rest amortisation).
- Line fee is charged on the average undrawn balance across the term.
- Assumes interest is capitalised, not serviced monthly.
- Indicative only. Real cost depends on QS turnaround, draw timing, variations and lender mechanics.
Beyond the numbers
A number is a starting point, not an answer
These tools model the mechanics. The decision depends on structure, timing and the specifics of your scenario — that's the conversation worth having.