Free Investor Tool
Hard Money Loan Calculator
The all-in cost of short-term money — monthly payment, points, cash to close, and total interest over the hold.
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Share of purchase + rehab the lender funds
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Results
Loan amount
$488,75085% of $575,000 project cost
Monthly payment (interest-only)
$4,277Points cost
$9,775Interest over 9 months
$38,489Cash to close
$98,525Down payment + points + fees
Total financing cost
$50,764Interest + points + fees
Loan is 69.8% of ARV. Within the ~70% of ARV range most hard money lenders are comfortable with.
How this works. Hard money loans are interest-only, so the monthly payment is loan × rate ÷ 12 and the principal is repaid when you sell or refinance. Points (1% of the loan each) and fees are paid at closing, which is why short holds make points the dominant cost. Many lenders also cap the loan at roughly 70% of ARV regardless of LTC.
FAQ
- How is hard money loan interest calculated?
- Hard money loans are almost always interest-only. The monthly payment is the loan amount times the annual rate divided by twelve. On a $500,000 loan at 10.5%, that's $4,375 per month, with the full principal due at payoff — usually when you sell or refinance.
- What are points on a hard money loan?
- A point is 1% of the loan amount, charged as an origination fee at closing. Two points on a $500,000 loan is $10,000. Points are the biggest hidden cost on short holds: on a six-month flip, two points can cost more than a full percentage point of rate.
- What does LTC mean?
- Loan-to-cost is the loan amount divided by total project cost (purchase price plus rehab budget). A lender offering 85% LTC on a $575,000 project will lend up to $488,750, and you bring the rest as a down payment plus points and closing costs.
- How fast can a hard money loan close?
- One to two weeks is typical once the lender has title and an appraisal or valuation, versus 30 to 45+ days for conventional financing. Speed is the main reason investors pay hard money rates — it lets them compete with cash buyers on off-market deals.