At completion — IO
$3,306.67
/ month
Free · Australian Construction Loan Planning
House & Land Package Stage EMI Calculator
See exactly how monthly repayments increase after each drawdown. Choose Interest-Only or P&I independently for the construction phase and for the full tenure after completion.
House & Land Package Calculator
Track how repayments increase after each drawdown stage with side-by-side Interest-Only and Principal & Interest timelines.
Repayment structure
During construction (land settlement to completion)
After construction (full loan tenure)
Progress payment stages
| Stage | Month | Build % | |
|---|---|---|---|
At completion — P&I
$643,306.67
/ month
Construction IO interest
$25,056
total during build
Construction P&I interest
$25,056
total during build
IO repayment at settlement
$3,306.67
/ month
P&I repayment at settlement
$3,954.61
/ month
Cumulative gap — P&I pays more during build by
$4,281,138
Monthly EMI timeline
Showing months where a drawdown changes your repayment.
| Month | Stage event | Loan drawn | Your repayment | Change | IO | P&I |
|---|---|---|---|---|---|---|
| Settlement | Land settlement draw | $336,000 | $1,736.00 | +$1,736.00 | $1,736.00 | $2,057.90 |
| Month 1 | Slab draw | $381,600 | $1,971.60 | +$235.60 | $1,971.60 | $2,339.42 |
| Month 3 | Frame draw | $442,400 | $2,285.73 | +$314.13 | $2,285.73 | $2,717.41 |
| Month 5 | Lock-up draw | $518,400 | $2,678.40 | +$392.67 | $2,678.40 | $3,190.48 |
| Month 7 | Fixing draw | $594,400 | $3,071.07 | +$392.67 | $3,071.07 | $3,665.48 |
| Month 9 | Practical completion draw | $640,000 | $3,306.67 | +$235.60 | $3,306.67 | $3,954.61 |
| Month 360 | - | $640,000 | $643,306.67 | $0.00 | $3,306.67 | $643,306.67 |
Model assumptions
- Rate is constant across all months.
- Interest is modelled monthly rather than daily accrual.
- Outputs exclude lender fees, LMI, and tax impacts.
- Construction timing is based on your stage month inputs.
This tool provides estimates only. Lender policy, daily interest accrual, fees, and settlement timing can change final repayments.
How construction loan repayments work
Construction loans are drawn in stages — each progress payment increases your funded balance, which immediately increases monthly interest costs. This calculator models every drawdown so you can forecast repayment pressure before signing contracts.
Land settlement draw
The first draw at land settlement sets your baseline repayment on the land portion of your loan.
Progress payment stages
Slab, frame, lock-up, fixing, and practical completion draws each increase the funded balance in steps.
IO vs P&I during build
Interest-Only keeps repayments lower during construction. P&I starts paying principal immediately — higher short-term, lower long-term cost.
Plan buffers before completion
Use the final repayment figure to plan cash flow, rental coverage, and refinance timing before practical completion.
Worked example (illustrative)
A buyer funds a $420,000 land contract and $380,000 build with a $160,000 deposit at 6.2% p.a. Drawdowns occur across 9 months. The timeline reveals each repayment jump as construction advances.
Total project cost$800,000
Loan required$640,000
Construction period9 months
Settlement IO repayment~$2,177/mo
Final P&I repayment (post-completion)~$3,908/mo
House & land package FAQs
How does repayment change during a house and land build?
Repayments rise whenever a new stage is funded because the drawn loan balance increases. This calculator shows that increase month by month.
What is the difference between Interest-Only and P&I during construction?
Interest-Only covers interest on the amount drawn. P&I starts paying principal immediately, so monthly repayments are usually higher early but reduce long-term interest.
Why does this tool show both repayment tracks at the same time?
Side-by-side tracks make it easier to compare cash flow pressure during the build and total repayment impact after completion.
Do lenders always charge monthly interest during construction?
Most construction loans accrue interest daily and charge monthly. This calculator uses a monthly approximation for planning.
Can I edit the stage schedule?
Yes. You can update stage month and percentage to match your builder contract and lender drawdown schedule.
Does this include LMI and lender fees?
No. This version focuses on repayment movement by stage and excludes LMI, establishment fees, and other lender-specific charges.
What happens if construction takes longer than expected?
A longer construction period generally means more months of progress payments. You can increase construction months and stage timing to model delays.
Is this calculator suitable for Australian buyers only?
The defaults, language, and formatting are built for Australian users and common construction-loan stage structures.