Hard Money Loan Calculator
Calculate hard money loan costs before you borrow — monthly interest payments, origination points, total carrying costs, and effective cost of capital. Free, updates in real time.
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What Is a Hard Money Loan?
A hard money loan is a short-term, asset-based loan used primarily by real estate investors for fix-and-flip deals, BRRRR purchases, and bridge financing. Unlike conventional mortgages, hard money loans are issued by private lenders and are based on the property's value (particularly the ARV) rather than the borrower's credit score or income.
They close fast — sometimes in 5–10 days vs. 30–45 days for conventional loans — which is critical when buying distressed properties that require quick closings.
How Hard Money Loans Are Priced
Hard money loans have two primary cost components:
- Interest rate: Typically 10–15% per year, charged on the outstanding loan balance. Most hard money loans are interest-only, meaning you pay only the interest each month and repay the full principal at payoff (when you sell or refinance).
- Origination points: An upfront fee expressed as a percentage of the loan amount. 1 point = 1% of the loan. Most hard money lenders charge 2–4 points. On a $150,000 loan, 2 points = $3,000 due at closing.
Typical Hard Money Loan Terms
- LTV: 65–80% of purchase price or ARV (varies by lender)
- LTC (loan to cost): Some lenders finance up to 90% of total project cost (purchase + rehab)
- Term: 6–18 months, with extensions available (usually for a fee)
- Rate: 10–15% annually
- Points: 2–4 at origination
- Prepayment penalty: Many hard money loans have a minimum interest period (e.g., 3 months) even if you pay off early
How to Compare Hard Money Lenders
Don't just compare rate — compare total cost. A lender charging 11% with 3 points on a 6-month loan may cost more than one charging 13% with 1 point. Use this calculator to compare total carrying costs between multiple lenders before choosing.
Frequently Asked Questions
Do hard money lenders check credit?
Most do a soft pull, but credit score is rarely the deciding factor. They care primarily about the deal — ARV, purchase price, rehab scope, and your experience. Bad credit won't necessarily disqualify you; a bad deal will.
Can I get 100% financing with hard money?
Some lenders offer 90% LTC (loan to cost) financing, meaning they cover 90% of purchase + rehab. You'd bring 10% plus points/closing costs. True 100% financing is rare and typically requires strong relationships or cross-collateralization.
What happens if I can't pay off the loan in time?
Most lenders offer extensions for a fee (typically 1–2 points or a rate bump). Communicate early — lenders generally prefer to extend than foreclose. If you're consistently over timeline, revisit your rehab scoping process.
How do I find hard money lenders?
BiggerPockets' lender directory, local REIA meetings, and referrals from other investors are the best sources. National lenders like Lima One, Kiavi, and RCN Capital are worth comparing for rates, but local portfolio lenders often have more flexibility on terms.
How to Use a Hard Money Loan Calculator
Hard money loans are short-term, asset-based loans used by real estate investors to fund fix-and-flip projects. Unlike conventional mortgages, hard money lenders focus primarily on the property's value — not the borrower's credit score — making them ideal for investors who need to close quickly.
Typical hard money loans carry interest rates of 10–15% annually, 1–3 origination points, and terms of 6–24 months. Most lenders will finance up to 70–75% of the after-repair value (ARV). Use the calculator above to model your monthly payments and total financing costs before committing to a deal.
Hard Money Loan Calculator — Common Questions
What is a typical hard money loan interest rate?
Hard money loan rates typically range from 10% to 15% annually, plus 1–3 origination points upfront. Rates vary based on lender, property type, borrower experience, and loan-to-value ratio. Experienced investors with a track record may qualify for rates at the lower end of this range.
How much can I borrow with a hard money loan?
Most hard money lenders will lend 65–75% of a property's after-repair value (ARV), or up to 80–90% of the purchase price — whichever is lower. Use our ARV calculator to estimate after-repair value before applying for a loan.
What is the difference between a hard money loan and a conventional loan?
Hard money loans close in 7–14 days vs. 30–60 days for conventional loans. They are asset-based (property value matters more than credit), short-term (6–24 months), and designed for fix-and-flip projects. Conventional loans offer lower rates but require strict underwriting, income verification, and longer timelines.
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