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Hard Money Loan Calculator

Size the loan a hard money lender will fund for a flip or BRRRR project, see cash required at closing, the monthly interest carry, and the true annualized cost including points and fees.

Project

$
$
$

Loan terms

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%
%
$

Loan amount

$238,000

capped at 70% of ARV

Cash required at closing

$27,000

price + rehab not covered by loan

Monthly interest payment

$2,281

interest-only carry

Total cost of capital

$26,788

interest + points + fees

Reading the number

Points cost: $4,760. Total fees: $6,260. Effective annualized cost (interest + fees over the 9-month term): 15.0%.

Hard money loans are priced for short-hold flips and BRRRR projects. Treat the loan amount as a maximum — most lenders fund the lower of LTV-of-ARV or LTC. Build the carry into your max offer.

How to Use

  1. Enter the purchase price and rehab budget for the project.
  2. Enter the after-repair value (ARV) — your supportable resale or refinance number.
  3. Enter the lender's max LTV of ARV (typically 65–75%), the rate, and any points.
  4. Add origination or processing fees and the expected loan term in months.
  5. Compare the loan amount to your project cost. The shortfall is the cash you must bring.

Frequently Asked Questions

How is a hard money loan amount determined?

Most hard money lenders cap funding at the lower of a percentage of ARV (often 65–75%) and a percentage of total project cost (often 80–90% LTC). This calculator caps to the LTV of ARV — if your project cost exceeds that, you bring the difference in cash.

Are hard money loan rates really that high?

Rates of 9–13% with 1–3 points are typical because the loans are short-term, asset-based, and underwritten quickly. The effective annualized cost can exceed 20% on a 6-month loan once points and fees are included.

Do hard money loans have monthly payments?

Most are interest-only with a balloon at the end of the term. A few offer fully amortizing structures, but those are rare for fix-and-flip product. Plan reserves for the full interest carry across your projected hold period.

Can I refinance a hard money loan into a long-term mortgage?

Yes — the BRRRR strategy depends on it. After rehab and lease-up, refinance into a DSCR or conventional loan based on the appraised value. Make sure the long-term loan amount covers the hard money payoff plus closing costs.

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