{
  "id": "hard-money-loan",
  "version": "bb31f549f778",
  "status": "published",
  "name": "Hard Money Loan Calculator",
  "question": "What will my hard money loan cost?",
  "summary": "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.",
  "category": "finance",
  "subcategory": "loans",
  "url": "https://www.acalculator.org/finance/hard-money-loan-calculator",
  "markdown": "https://www.acalculator.org/finance/hard-money-loan-calculator.md",
  "kind": "function",
  "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.",
  "assumptions": [
    "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."
  ],
  "inputs": {
    "$schema": "https://json-schema.org/draft/2020-12/schema",
    "type": "object",
    "properties": {
      "price": {
        "title": "Purchase price",
        "description": "The price of the property.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 1000,
        "maximum": 1000000000
      },
      "rehab": {
        "title": "Repair costs",
        "description": "The cost of the repairs or rehab the loan helps pay for.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000000
      },
      "arv": {
        "title": "After-repair value (ARV)",
        "description": "What the property should be worth once the repairs are done.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 1000,
        "maximum": 1000000000
      },
      "ltc": {
        "title": "Loan-to-cost limit",
        "description": "The most the lender lends, as a percent of the price plus repairs.",
        "type": "number",
        "x-unit": "percent",
        "minimum": 1,
        "maximum": 100
      },
      "ltv": {
        "title": "After-repair value limit",
        "description": "The most the lender lends, as a percent of the after-repair value.",
        "type": "number",
        "x-unit": "percent",
        "minimum": 1,
        "maximum": 100
      },
      "rate": {
        "title": "Interest rate",
        "description": "The yearly rate. The monthly interest is the loan × rate ÷ 12.",
        "type": "number",
        "x-unit": "percent",
        "minimum": 0,
        "maximum": 40
      },
      "points": {
        "title": "Points",
        "description": "The lender’s points, paid at closing; 1 point is 1% of the loan.",
        "type": "number",
        "minimum": 0,
        "maximum": 10
      },
      "fees": {
        "title": "Other closing fees",
        "description": "Underwriting, appraisal and other lender fees paid at closing.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 10000000
      },
      "months": {
        "title": "Months you hold the loan",
        "description": "How long until you sell or refinance and repay the loan.",
        "type": "integer",
        "minimum": 1,
        "maximum": 60
      }
    }
  },
  "outputs": {
    "payment": {
      "label": "Monthly interest-only payment",
      "description": "Loan × rate ÷ 12.",
      "format": "money"
    },
    "loan": {
      "label": "Loan amount",
      "description": "The smaller of LTC limit × (price + repairs) and ARV limit × ARV.",
      "format": "money"
    },
    "pointsCost": {
      "label": "Points",
      "description": "Points × loan ÷ 100.",
      "format": "money"
    },
    "interest": {
      "label": "Interest while you hold it",
      "description": "Monthly payment × months.",
      "format": "money"
    },
    "cost": {
      "label": "Total cost of the loan",
      "description": "Points + other fees + interest.",
      "format": "money"
    },
    "cash": {
      "label": "Cash you bring to closing",
      "description": "Price + repairs − loan + points + other fees.",
      "format": "money"
    },
    "balloon": {
      "label": "Balloon at the end",
      "description": "The whole loan, repaid when you sell or refinance.",
      "format": "money"
    },
    "ltcUsed": {
      "label": "Loan-to-cost",
      "description": "Loan ÷ (price + repairs).",
      "format": "percent"
    },
    "arvUsed": {
      "label": "Loan-to-ARV",
      "description": "Loan ÷ after-repair value.",
      "format": "percent"
    }
  },
  "defaultAnswer": {
    "inputs": {
      "price": 250000,
      "rehab": 50000,
      "arv": 400000,
      "ltc": 90,
      "ltv": 70,
      "rate": 11,
      "points": 2,
      "fees": 1500,
      "months": 12
    },
    "outputs": {
      "payment": 2475,
      "loan": 270000,
      "pointsCost": 5400,
      "interest": 29700,
      "cost": 36600,
      "cash": 36900,
      "balloon": 270000,
      "ltcUsed": 90,
      "arvUsed": 67.5
    },
    "text": "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."
  },
  "examples": [
    {
      "given": {
        "price": 250000,
        "rehab": 50000,
        "arv": 400000,
        "ltc": 90,
        "ltv": 70,
        "rate": 11,
        "points": 2,
        "fees": 1500,
        "months": 12
      },
      "expect": {
        "loan": 270000,
        "payment": 2475,
        "pointsCost": 5400,
        "interest": 29700,
        "cost": 36600,
        "cash": 36900,
        "ltcUsed": 90,
        "arvUsed": 67.5
      },
      "source": "hand calculation in content.mdx: min(0.9 × 300,000, 0.7 × 400,000) = 270,000; 270,000 × 11% ÷ 12 = 2,475; 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)"
    },
    {
      "given": {
        "price": 180000,
        "rehab": 70000,
        "arv": 300000,
        "ltc": 90,
        "ltv": 70,
        "rate": 12,
        "points": 3,
        "fees": 2000,
        "months": 6
      },
      "expect": {
        "loan": 210000,
        "payment": 2100,
        "pointsCost": 6300,
        "interest": 12600,
        "cost": 20900,
        "cash": 48300
      },
      "source": "hand calculation in content.mdx; 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)"
    },
    {
      "given": {
        "price": 100000,
        "rehab": 0,
        "arv": 100000,
        "ltc": 50,
        "ltv": 50,
        "rate": 0,
        "points": 0,
        "fees": 0,
        "months": 1
      },
      "expect": {
        "loan": 50000,
        "payment": 0,
        "cost": 0,
        "cash": 50000
      },
      "source": "hand calculation in content.mdx: half of $100,000 at 0% with no points or fees"
    }
  ],
  "sources": [
    "Consumer Financial Protection Bureau, What are (discount) points and lender credits and how do they work? 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: exempt transactions. https://www.consumerfinance.gov/rules-policy/regulations/1026/3/ (retrieved 2026-10-05)"
  ],
  "related": [
    "interest-only-loan",
    "bridge-loan",
    "commercial-loan",
    "construction-loan"
  ],
  "changelog": []
}