Hard Money Loan Calculator

A hard money loan is a short-term loan secured by real estate, usually used for fix-and-flip projects or bridge financing. It is funded by private lenders rather than banks, so it closes fast but carries a higher rate and origination points. Most hard money loans are interest-only with a balloon payment, meaning you pay only interest each month and repay the full principal when the property sells or refinances.

It adds three cost components. The monthly interest-only payment is your loan amount times the annual rate divided by 12, and the total interest is that payment times the number of months. Points cost is your loan amount times the points divided by 100, since one point equals 1% of the loan. Adding total interest, points cost, and any flat lender fees gives the all-in cost on top of repaying your principal.

Points are an origination fee charged up front, where one point equals 1% of the loan amount. A 2-point fee on a $200,000 loan is $4,000, due at closing. Hard money lenders typically charge 1 to 4 points, and those points are a real part of your borrowing cost that a plain interest rate does not show.

Hard money is priced for speed, short terms, and higher risk. Rates often run 9% to 15% versus far lower bank mortgage rates, plus you pay points and flat fees up front. Because the loan is interest-only over a short hold, the cash cost can still be smaller than a long mortgage in absolute dollars, but the annualized cost rate is high. The calculator shows that annualized rate so you can compare loans of different lengths.

No. This tool gives an estimate based on the numbers you enter and a standard interest-only structure. Actual terms vary by lender and can include prepaid interest, draw schedules, extension fees, and prepayment penalties that are not modeled here. Treat the result as a planning estimate, not financial advice, and confirm the exact terms with your lender.