Hard Money Loan Calculator
See the full cost of a hard money loan — monthly interest, total interest over term, points, and origination fees — before you commit.
Loan Details
Cost Breakdown
Enter loan details to see the cost breakdown.
REI Labs Elite
Find your next deal to finance — REI Labs Elite gives you daily-updated investor lead data. $97/mo
How this works
Hard money loans are short-term, asset-based loans secured by the property — not the borrower's credit or income. Lenders typically advance 65–80% of the property's ARV or purchase price, whichever is lower. The loan is usually structured as interest-only with a balloon payment at the end of the term.
Interest cost is straightforward: (Loan × Annual Rate) ÷ 12 = monthly payment. Multiply by the number of months to get total interest over the term. This number should be a line item in your deal analysis, not an afterthought.
Pointsare paid upfront at closing and do not reduce if you pay off early. On a 12-month loan with 2 points, paying off in month 6 doesn't return 1 point — you've already paid both. Factor this into your carry cost analysis.
The total cost of borrowing (interest + points + origination) is what you should plug into your deal analyzer as your financing cost. Use the Deal Calculator to see how it affects your overall profit and ROI.
Related Calculators
Frequently Asked Questions
What are points on a hard money loan?
Points are an upfront fee charged as a percentage of the loan amount. One point equals 1% of the loan. Two points on a $200,000 loan costs $4,000, paid at closing regardless of how long you hold the loan.
Are hard money loans interest-only?
Most are. You pay only interest each month, with the full principal due at the end of the term (balloon payment). This keeps monthly payments low during a flip but requires a clean exit — sale, refinance, or payoff.
What is a typical hard money rate?
Rates vary widely by lender and market conditions. Expect 9–15% annually plus 1–4 points as of 2024. Rates are higher than conventional loans because hard money lenders take on more risk and fund faster.
How does hard money compare to conventional financing for flips?
Hard money is faster to close (days vs. 30–45 days) and does not require W-2 income or a low debt-to-income ratio, which matters for investors with multiple properties. The cost premium is the trade-off for speed and flexibility.