Hard Money Loan Calculator
Hard money loans are the fast, asset-based financing that fuels most fix-and-flip and short-term real estate deals, trading sky-high interest rates and upfront points for speed and flexibility a bank cannot match. Because these loans are almost always structured as interest-only for a term of six to eighteen months, their true cost is easy to underestimate. This calculator lays it bare. It computes your monthly interest-only payment, the origination fee implied by your points, and the total interest you will pay across the loan term, then rolls everything — including any flat fees — into a single all-in cost figure. That number is what actually eats into your flip profit, so modeling it accurately before you borrow is essential. Adjust the rate, points, and term to compare competing lender quotes and understand exactly how much a few extra months of holding time will cost you.
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Results update live as you type. Estimates only — not financial, tax, or investment advice.
The Formula
Monthly Interest = Loan Amount × (Annual Rate ÷ 12); Points = Loan × Point %
Understanding the Hard Money Loan Calculator
Hard money loans trade cost for speed and flexibility. Because they are secured primarily by the property rather than your income or credit, an experienced lender can fund a deal in days instead of the weeks a bank requires — invaluable when you are competing for a distressed property or a foreclosure. The price of that speed is steep: double-digit interest rates plus upfront 'points,' where each point equals 1% of the loan amount charged at closing.
Most hard money loans are structured interest-only for a short term of six to eighteen months, so your monthly payment covers only interest and the full principal is due as a balloon at the end. This keeps monthly carrying costs lower during a flip but means the clock is always running. The all-in cost that actually eats your profit is the sum of every interest payment plus points plus fees — model it honestly before borrowing, and remember that a project running a few months long can quietly erase your margin.
Frequently Asked Questions
What are points on a hard money loan?
Points are an upfront origination fee, where one point equals 1% of the loan amount, paid at closing. A $200,000 loan with 2 points costs $4,000 in points on day one. Points are separate from the interest rate and are a major part of a hard money loan's true cost, so always factor them in.
What are typical hard money loan interest rates?
Hard money rates commonly range from about 9% to 15%, plus 1–4 points, though terms vary by lender, market, and borrower experience. Rates run far higher than conventional mortgages because the loans are short-term, fast to fund, and based on the asset rather than the borrower's income.
What does interest-only mean on a hard money loan?
Interest-only means your monthly payment covers just the interest, with no principal reduction. The entire original loan balance comes due as a lump-sum balloon payment at the end of the term. This lowers monthly carrying costs during a flip but requires you to repay the full principal when you sell or refinance.