# What will my hard money loan cost?

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.

- Page: https://www.acalculator.org/finance/hard-money-loan-calculator
- JSON spec: https://www.acalculator.org/finance/hard-money-loan-calculator.json
- Version: bb31f549f778

## Default answer

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.

## Inputs

| Key | Label | Description |
| --- | --- | --- |
| price | Purchase price | The price of the property. |
| rehab | Repair costs | The cost of the repairs or rehab the loan helps pay for. |
| arv | After-repair value (ARV) | What the property should be worth once the repairs are done. |
| ltc | Loan-to-cost limit | The most the lender lends, as a percent of the price plus repairs. |
| ltv | After-repair value limit | The most the lender lends, as a percent of the after-repair value. |
| rate | Interest rate | The yearly rate. The monthly interest is the loan × rate ÷ 12. |
| points | Points | The lender’s points, paid at closing; 1 point is 1% of the loan. |
| fees | Other closing fees | Underwriting, appraisal and other lender fees paid at closing. |
| months | Months you hold the loan | How long until you sell or refinance and repay the loan. |

## Outputs

| Key | Label | Description |
| --- | --- | --- |
| payment | Monthly interest-only payment | Loan × rate ÷ 12. |
| loan | Loan amount | The smaller of LTC limit × (price + repairs) and ARV limit × ARV. |
| pointsCost | Points | Points × loan ÷ 100. |
| interest | Interest while you hold it | Monthly payment × months. |
| cost | Total cost of the loan | Points + other fees + interest. |
| cash | Cash you bring to closing | Price + repairs − loan + points + other fees. |
| balloon | Balloon at the end | The whole loan, repaid when you sell or refinance. |
| ltcUsed | Loan-to-cost | Loan ÷ (price + repairs). |
| arvUsed | Loan-to-ARV | Loan ÷ after-repair value. |

## 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.

## Worked examples

1. price = $250,000.00, rehab = $50,000.00, arv = $400,000.00, ltc = 90%, ltv = 70%, rate = 11%, points = 2, fees = $1,500.00, months = 12 gives loan = $270,000.00, payment = $2,475.00, pointsCost = $5,400.00, interest = $29,700.00, cost = $36,600.00, cash = $36,900.00, ltcUsed = 90%, arvUsed = 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. price = $180,000.00, rehab = $70,000.00, arv = $300,000.00, ltc = 90%, ltv = 70%, rate = 12%, points = 3, fees = $2,000.00, months = 6 gives loan = $210,000.00, payment = $2,100.00, pointsCost = $6,300.00, interest = $12,600.00, cost = $20,900.00, cash = $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. price = $100,000.00, rehab = $0.00, arv = $100,000.00, ltc = 50%, ltv = 50%, rate = 0%, points = 0, fees = $0.00, months = 1 gives loan = $50,000.00, payment = $0.00, cost = $0.00, cash = $50,000.00.

## FAQ

### 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.

## 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)