Financial Calculators

Hard Money Loan Calculator

Calculate house flipping hard money interest-only payments, upfront lender points, and net financing totals for real estate rehabs.

Formula Verified & Maintained by:David Miller, CPA

CPA, M.S. Finance (NYU Stern) • Lead Financial Analyst & Tax Technology Editor

Peer-Reviewed AlgorithmAudited for 2026 Rules

Interactive Calculator

1. Provide Details

Property Purchase Price ($)

Estimated Rehab Cost ($)

LTV Offer on Purchase (%)

Lender Interest Rate (%)

Lender Points (%)

Rehab Loan Term (Months)

2. Output Results

Hard Money Loan Amount150000.00 $

Monthly Interest-Only Payment1500.00 $

Upfront Points Fee3750.00 $

Total Cost of Financing12750.00 $

How to Calculate: Formula & Steps

Calculates monthly interest payments and adds upfront underwriting points fee coefficients.

Formula Used:Monthly Payment = Loan Principal × Interest Rate ÷ 12; Points Fee = Loan Principal × Points %

Step-by-Step Calculation Example

Borrowing $187,500 (75% LTV on $250k total) at 12% interest with 2.5 points for 6 months costs $1,875/month in interest and $4,687 in points fees. Total cost: $15,937.

Common Mistakes to Avoid

Failing to budget for holding costs or rehab delays, which prolong high-interest payment terms.

Practical Use Cases

Analyzing house flipping property deals
Comparing lender terms and interest charges

Expert Tips

Lenders often lend based on ARV (After Repair Value) rather than purchase price. Confirm the loan structure before closing.

Real Estate Hard Money Financing: Points, Interest-Only Debt & ARV

In residential real estate investing and fix-and-flip projects, hard money loans are asset-based short-term financing vehicles (6 to 18 months) used to acquire and renovate distressed properties that traditional mortgage banks refuse to finance.

Upfront Lender Points Fee

Points Fee = Total Loan Principal × (Points % ÷ 100)

Hard money lenders typically charge 1.5 to 3.5 points (1 point = 1% of the loan amount) as an upfront origination fee at closing.

Interest-Only Debt Service

Monthly Payment = (Loan Principal × Annual Interest Rate) ÷ 12

Interest rates typically range from 10.0% to 14.0%. Principal is repaid as a lump sum when the property is sold or refinanced.

Disclaimer

This calculation tool is provided for educational and informational estimation purposes only. Results are based on mathematical formulas and user-supplied parameters. They do not constitute formal underwriting, financial, tax, engineering, or legal determinations.

Frequently Asked Questions About Hard Money Loan Calculator

What is a hard money loan?

A short-term, high-interest loan secured by real estate, commonly used by house flippers and developers to purchase and rehab properties.

What are 'points' on a hard money loan?

Points are upfront lender origination fees. 1 point equals 1% of the total loan principal.