Construction Loan Progress Payment Calculator

Track revised contracts, draw amounts, and equity duties. Review retainage, stored materials, and lender balance using structured progress payment logic.

Calculator Form

Example Data Table

Item Example Value
Total Contract Amount$450,000.00
Approved Loan Amount$360,000.00
Approved Loan Percent80.00%
Net Change Orders$15,000.00
Percent Complete42.00%
Stored Materials$18,000.00
Retainage Percent10.00%
Prior Disbursements$95,000.00
Borrower Equity Already Paid$30,000.00
Lender Fees and Reserves$12,000.00
Inspection Adjustment$2,500.00

Formula Used

1. Revised Contract Value
Total Contract Amount + Net Change Orders

2. Gross Earned Work
Revised Contract Value × Percent Complete

3. Gross Earned To Date
Gross Earned Work + Stored Materials

4. Retainage Amount
Gross Earned To Date × Retainage Percent

5. Net Earned To Date
Gross Earned To Date − Retainage Amount − Inspection Adjustment

6. Available Loan Funds
Approved Loan Budget − Lender Fees and Reserves

7. Eligible Lender Amount To Date
Lower of Net Earned To Date and Available Loan Funds

8. Current Progress Payment
Eligible Lender Amount To Date − Prior Disbursements

9. Borrower Required To Date
Net Earned To Date − Eligible Lender Amount To Date

How to Use This Calculator

  1. Enter the original contract amount for the project.
  2. Add the approved loan amount or the lender percent limit.
  3. Include net change orders that raise or lower the contract.
  4. Enter the verified project completion percentage.
  5. Add materials stored on site or approved off site.
  6. Set the retainage percentage required by the contract.
  7. Enter all prior lender disbursements already released.
  8. Add any borrower equity already invested in the job.
  9. Enter lender fees, reserves, and inspection deductions.
  10. Submit the form to view the draw amount above.

Construction Loan Progress Payment Guide

Why This Calculator Matters

A construction loan progress payment calculator helps control draw requests. It supports cleaner payment records. It also helps owners, lenders, and contractors review the same numbers. That reduces payment disputes. It also improves document accuracy during each funding stage.

What It Measures

This calculator measures earned work, stored materials, retainage, and lender exposure. It also checks prior draws. Then it estimates the current progress payment. The result shows how much the lender may release now. It also shows whether the borrower must contribute more equity.

How Draw Reviews Usually Work

Most construction loans do not release the full contract value at once. Funds move in stages. Each stage depends on verified progress. Inspectors often confirm percent complete. Lenders then compare that value with prior disbursements, retainage terms, and reserve deductions before approving a payment.

Why Retainage Changes the Result

Retainage protects against incomplete or defective work. A ten percent retainage lowers the amount payable today. That means the gross earned value is not always the same as the payable value. The calculator separates those numbers so the payment request stays realistic and traceable.

Why Equity Tracking Is Important

Many lenders require borrower equity before loan funds cover later work. That makes equity tracking essential. This tool estimates the borrower share already needed. It also highlights any additional contribution still required. That helps prevent rejected draws and last minute funding gaps.

Best Use in Contracts and Documents

This calculator fits payment applications, draw schedules, lender packages, and internal reviews. It helps teams compare revised contract value against earned value and undisbursed balance. It also supports cleaner backup documents for inspectors, title companies, accountants, and project managers reviewing payment support.

Practical Benefit

Use the result as a planning number, not a legal approval. Final draw terms still depend on signed loan documents and inspection rules. Still, a reliable estimate saves time. It improves communication. It also creates a stronger payment trail for every construction funding milestone.

FAQs

1. What is a construction loan progress payment?

It is a staged loan disbursement released as construction advances. The lender usually reviews completed work, stored materials, retainage, and previous draws before sending each payment.

2. Why do lenders use retainage?

Retainage keeps part of the earned value unpaid until later. It reduces risk and encourages completion, corrections, and proper closeout documentation before final release.

3. Can stored materials be included in a draw?

Yes, many lenders count approved stored materials. They may require invoices, delivery proof, site verification, or insurance evidence before including them in the payment base.

4. What does prior disbursement mean?

Prior disbursement is the total already paid from earlier draws. It must be deducted from the current eligible amount to avoid duplicate funding.

5. Why is borrower equity important?

Borrower equity shows the owner has invested required funds. Lenders often require that contribution before releasing more loan proceeds for later project stages.

6. Does this calculator replace loan documents?

No. It is a planning and review tool. Signed loan agreements, inspection reports, title conditions, and lender policies control the final approved payment.

7. What if change orders increase the contract price?

Approved change orders raise the revised contract value. That can increase earned work calculations, but lender funding still remains limited by loan terms and reserves.

8. Can this help with draw request paperwork?

Yes. It helps organize payment support numbers. You can compare contract value, completion, retainage, and balance before preparing draw forms and backup schedules.

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Important Note: All the Calculators listed in this site are for educational purpose only and we do not guarentee the accuracy of results. Please do consult with other sources as well.