acalculator

What will my hard money loan cost?

Type the purchase price, repair costs and after-repair value, your lender’s limits, rate, points and fees, and how many months you will hold the loan. The hard money loan calculator shows the loan amount, the monthly interest-only payment, the cash you bring to closing, and what the loan costs.

Your numbers

An example rate, not today’s rate. Use the rate your lender quotes.
Lender limits
Monthly interest-only payment
$2,475.00

A $270,000.00 hard money loan costs $2,475.00 a month and $36,600.00 in all over 12 months; you bring $36,900.00 to closing.

Points $5,400.00Interest while you hold it $29,700.00
15% points85% interest while you hold it
Loan amount
$270,000.00
Points
$5,400.00
Interest while you hold it
$29,700.00
Total cost of the loan
$36,600.00
Cash you bring to closing
$36,900.00
Balloon at the end
$270,000.00
Loan-to-cost
90%
Loan-to-ARV
67.5%

Monthly interest-only payment: $2,475.00. A $270,000.00 hard money loan costs $2,475.00 a month and $36,600.00 in all over 12 months; you bring $36,900.00 to closing.

What does the loan cost?

The results are estimates for information only. They are not financial, tax, or legal advice. Check the numbers with your lender or a qualified professional before you decide. Terms of use

How to calculate

Works out a hard money loan for a fix-and-flip: the loan from the lender’s loan-to-cost and after-repair value limits, the interest-only payment, points, cash to close, and the cost of holding the loan.

Example with the default inputs (Purchase price $250,000.00, Repair costs $50,000.00, After-repair value (ARV) $400,000.00, Loan-to-cost limit 90%, After-repair value limit 70%, Interest rate 11%, Points 2, Other closing fees $1,500.00, Months you hold the loan 12): A $270,000.00 hard money loan costs $2,475.00 a month and $36,600.00 in all over 12 months; you bring $36,900.00 to closing.

Method: loan = min(LTC % × (price + repairs), ARV % × ARV); monthly payment = loan × rate ÷ 12; points = points × loan ÷ 100; cost = points + fees + payment × months; cash to close = price + repairs − loan + points + fees. All in exact decimals.

  • The lender lends the most both limits allow, all at closing; many lenders pay the repair money out in draws, which lowers the interest early on.
  • Interest only, paid monthly at the yearly rate ÷ 12; the whole loan is repaid when you sell or refinance.
  • Points and fees are paid in cash at closing. Taxes, insurance, holding costs and selling costs are not included.
  • Type the rate and limits your lender quotes; no live rates.

Machine-readable copies: Markdown, JSON.

Worked examples

Each example is checked against the calculator on every build.

  1. Purchase price $250,000.00, Repair costs $50,000.00, After-repair value (ARV) $400,000.00, Loan-to-cost limit 90%, After-repair value limit 70%, Interest rate 11%, Points 2, Other closing fees $1,500.00, Months you hold the loan 12 gives Loan amount $270,000.00, Monthly interest-only payment $2,475.00, Points $5,400.00, Interest while you hold it $29,700.00, Total cost of the loan $36,600.00, Cash you bring to closing $36,900.00, Loan-to-cost 90%, Loan-to-ARV 67.5%.Source: Consumer Financial Protection Bureau, What are (discount) points and lender credits and how do they work? (one point equals one percent of the loan amount), https://www.consumerfinance.gov/ask-cfpb/what-are-discount-points-and-lender-credits-and-how-do-they-work-en-136/ (retrieved 2026-10-05)
  2. Purchase price $180,000.00, Repair costs $70,000.00, After-repair value (ARV) $300,000.00, Loan-to-cost limit 90%, After-repair value limit 70%, Interest rate 12%, Points 3, Other closing fees $2,000.00, Months you hold the loan 6 gives Loan amount $210,000.00, Monthly interest-only payment $2,100.00, Points $6,300.00, Interest while you hold it $12,600.00, Total cost of the loan $20,900.00, Cash you bring to closing $48,300.00.Source: Consumer Financial Protection Bureau, What are (discount) points and lender credits and how do they work? (one point equals one percent of the loan amount), https://www.consumerfinance.gov/ask-cfpb/what-are-discount-points-and-lender-credits-and-how-do-they-work-en-136/ (retrieved 2026-10-05); Consumer Financial Protection Bureau, Regulation Z, 12 CFR 1026.3(a): credit extended primarily for a business, commercial or agricultural purpose is exempt from Regulation Z, https://www.consumerfinance.gov/rules-policy/regulations/1026/3/ (retrieved 2026-10-05)
  3. Purchase price $100,000.00, Repair costs $0.00, After-repair value (ARV) $100,000.00, Loan-to-cost limit 50%, After-repair value limit 50%, Interest rate 0%, Points 0, Other closing fees $0.00, Months you hold the loan 1 gives Loan amount $50,000.00, Monthly interest-only payment $0.00, Total cost of the loan $0.00, Cash you bring to closing $50,000.00.

How it works

With the purchase price P, repairs C, after-repair value V, the lender’s loan-to-cost limit a% and ARV limit b%, a yearly rate R%, k points, other fees F and m months, all in exact decimals:

  • Loan amount L = the smaller of (P + C) × a ÷ 100 and V × b ÷ 100.
  • Monthly interest-only payment = L × R ÷ 1200.
  • Points = L × k ÷ 100. Points plus fees must be less than the loan.
  • Interest while you hold it = monthly payment × m. Total cost of the loan = points + F + interest.
  • Cash you bring to closing = P + C − L + points + F.
  • Balloon at the end = L. Loan-to-cost = L ÷ (P + C) × 100; loan-to-ARV = L ÷ V × 100.

Rules

  • Price and ARV $1,000 to $1,000,000,000; limits 1% to 100%; rate 0% to 40%; points 0 to 10; 1 to 60 months.
  • The whole loan is paid out at closing (no draws); repairs are paid at closing too.

Worked examples by hand

The default: $250,000 price, $50,000 repairs, $400,000 ARV, 90% and 70% limits, 11%, 2 points, $1,500 fees, 12 months. L = min(270,000, 280,000) = $270,000. Payment = 270,000 × 11 ÷ 1200 = $2,475. Points $5,400; interest 12 × 2,475 = $29,700; total $36,600. Cash to close 300,000 − 270,000 + 5,400 + 1,500 = $36,900.

$180,000 price, $70,000 repairs, $300,000 ARV, 12%, 3 points, $2,000 fees, 6 months. L = min(225,000, 210,000) = $210,000. Payment $2,100; points $6,300; interest $12,600; total $20,900; cash to close $48,300.

$100,000 at 50% limits and 0% with no points or fees. L = $50,000; no cost; cash to close $50,000.

Other questions people ask

How much will a hard money lender lend?

Usually the smaller of two limits: a percent of the purchase price plus repairs (loan-to-cost) and a percent of the after-repair value (ARV). At 90% and 70%, a $250,000 property with $50,000 of repairs and a $400,000 ARV gets min(270,000, 280,000) = $270,000.

How is the monthly payment worked out?

Hard money loans are usually interest only: loan × yearly rate ÷ 12. $270,000 at 11% is $2,475 a month, and the whole loan is repaid when you sell or refinance.

What are points on a hard money loan?

A fee paid at closing; one point is 1% of the loan. 2 points on $270,000 is $5,400.

How much cash do I need to close?

The price plus repairs minus the loan, plus points and fees: 300,000 − 270,000 + 5,400 + 1,500 = $36,900 in the default example.

Is a hard money loan covered by consumer lending rules?

Loans made mainly for a business purpose, such as an investment property, are generally exempt from Regulation Z (12 CFR 1026.3(a)), so read the loan terms carefully.

Does the calculator include holding and selling costs?

No. It covers the loan only. Add taxes, insurance, utilities and selling costs to judge the whole project.