Hard Money Loan Calculator

Calculate the true cost of short-term fix and flip financing — monthly payments, origination fees, total loan cost, and full flip profit and loss.

$
%
months
% of loan
Total Cost of Loan
$30,000
$2,000/mo interest-only + $6,000 origination fee
Principal (returned): $200,000
Total Interest: $24,000
Origination Fee: $6,000
Monthly Payment
$2,000
Origination Fee
$6,000
Total Interest
$24,000
Effective Annual Cost
15.0%

Total loan cost at different origination point scenarios at 12.0% for 12 months.

PointsOrigination FeeTotal InterestTotal Loan CostAll-In Amount
2 points$4,000$24,000$28,000$228,000
3 points (current)$6,000$24,000$30,000$230,000
4 points$8,000$24,000$32,000$232,000
5 points$10,000$24,000$34,000$234,000
Each additional point on a $200,000 loan costs $2,000 upfront. Negotiate on points when possible — lenders often have more flexibility on points than on rate.
$
$
$
months
%
Projected Flip Profit
+$34,300
ROI: 12.9% on $266,500 all-in
Purchase Price: $200,000
Rehab Cost: $50,000
Hard Money Cost: $16,500
Selling Costs: $19,200
Purchase Price
$200,000
Rehab Cost
$50,000
Hard Money Orig Fee
$4,500
Hard Money Interest
$12,000
8 months at 12.0%
Total All-In
$266,500
ARV
$320,000
Selling Costs
$19,200
Profit / ROI
$34,300 / 12.9%
Margin warning: Your profit is 10.7% of ARV. Most experienced flippers target 20%+ profit margin of ARV as a buffer against cost overruns.

How to Use the Hard Money Loan Calculator

This calculator helps real estate investors understand the true cost of hard money financing — essential for fix and flip projects, bridge loans, and short-term real estate deals.

Quick Calculator

Enter your Loan Amount, Interest Rate (9-15% typical), Loan Term in Months (6-24), and Origination Points (2-5%). The result shows your monthly interest-only payment, total interest cost, origination fee, and the effective annual cost of the loan.

Advanced — Hard Money Analysis

Points Comparison shows total cost at 2, 3, 4, and 5 origination points. Hold Period Analysis shows how costs escalate at 3, 6, 9, 12, and 18-month holds — critical for understanding delay risk. vs Conventional compares total cost and closing speed between hard money and a traditional loan.

Pro — Professional Analysis

The Full Flip P&L tab models complete fix and flip profitability: purchase + rehab + hard money costs + selling costs = total invested vs. ARV. Exit Strategy compares selling after rehab against refinancing into a conventional loan (BRRRR). Lender Comparison lets you enter three lender offers side-by-side to find the cheapest total cost.

Key Formulas

Monthly Payment = Loan Amount × (Annual Rate / 12)
Origination Fee = Loan Amount × (Points / 100)
Total Interest = Monthly Payment × Months
Total Loan Cost = Total Interest + Origination Fee
Flip Profit = ARV − Selling Costs − Purchase Price − Rehab − Hard Money Cost
Effective Annual Rate = (Total Cost / Loan Amount) / (Months / 12)

Worked Example: Fix and Flip in Dallas

Kevin's First Fix and Flip

Kevin found a distressed 3-bedroom home listed at $185,000 in a Dallas suburb. Comparable renovated homes sell for $295,000. He estimates $45,000 in rehab costs.

Purchase Price$185,000
Rehab Budget$45,000
Hard Money Loan$148,000 (80% of purchase)
Interest Rate12% annually
Origination Points3 points = $4,440
Hold Period9 months
Monthly Interest$1,480/mo
Total Hard Money Cost$17,760 interest + $4,440 points = $22,200
Selling Costs (6%)$17,700
Total All-In$269,900
ARV$295,000
Net Profit$25,100 (9.3% ROI)

Kevin's margin is thin. If rehab runs over by $15,000 or he holds an extra 3 months, the deal becomes a loss. Experienced flippers typically require 20%+ profit margin of ARV as a safety buffer.

Frequently Asked Questions

Most hard money lenders will loan 65-80% of the purchase price (LTV), not the ARV. Some will lend up to 70% of ARV and include rehab costs in the loan (called "fix and flip" loans). Higher LTV = higher risk for the lender = higher rate. The best rates go to experienced borrowers with low LTV and strong exit plans.
Yes, credit matters less for hard money than conventional loans. Hard money lenders primarily underwrite the deal — the property value, ARV, and your exit strategy — not your credit score. Some lenders set a minimum credit score of 600-620, but others have no minimum. The property serves as collateral, which is why lenders care more about LTV than your credit history.
Hard money lenders can extend the loan (extension fees of 1-2 points are common) or initiate foreclosure proceedings. Because the process moves faster than conventional foreclosure in many states, defaulting on a hard money loan is more dangerous than defaulting on a regular mortgage. Always have a clear exit strategy and enough cash reserves for delays.
BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. Hard money funds the purchase and rehab (6-12 months). After renovation and lease-up, you refinance into a conventional investment property loan at the new higher appraised value. If the refinance covers most of your original investment, you've essentially recycled your capital into the next deal.
Yes. For investment properties, hard money loan interest and origination fees are deductible as business expenses against the property's income. For fix and flip properties held as inventory (dealer status), they're deducted as cost of goods sold when the property sells. Consult a CPA familiar with real estate investing to properly categorize these deductions.

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