Free calculator
Hard money loan calculator
Enter the purchase price, rehab budget and after-repair value to see how much a hard money lender is likely to fund, your cash to close, the monthly interest payment and the true cost of the loan, including points, draw fees, Dutch interest and extensions.
Monthly interest: after closing, once fully drawn.
Cash to close
What the loan costs
Cash to budget for the whole project
Enter up to three term sheets on the left. The loan amount, draws and payoff month come from the deal on the first tab.
Most flips that lose money do it in two ways: the rehab runs over and the sale runs late. This grid shows your profit in each case, with extension fees added once the payoff passes the loan term.
Illustrative estimate from the numbers you entered. Not an offer or commitment to lend; actual terms are set by the lender after underwriting. Business-purpose loans on non-owner-occupied investment property only.
Next step
Want real terms on this hard money loan?
Send the deal and a person reads it. Your calculator numbers are copied into the form, so there is nothing to retype. If it is a deal the lenders in our network can do, you get an indicative range and a list of what they need. If it is not, we tell you quickly.
- No application fee, no upfront fee, no obligation.
- Business-purpose loans only: investment property held in an LLC or other entity, never owner-occupied.
- Programs available in 40 states.
Easy Lending USA is not a lender or a mortgage broker. We introduce real estate investors to independent private lenders, who make every credit decision.
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How to use the hard money loan calculator
- Enter the deal. Purchase price, rehab budget, after-repair value (ARV) and your other closing costs such as title and appraisal.
- Set the leverage. Pick your track record to load typical caps, then change the loan-to-cost and loan-to-ARV limits to match your quote.
- Enter the terms from your term sheet. Rate, points, lender fees, loan term and how many months you expect to hold the property. Choose whether interest is charged on the full loan (Dutch) or only on money drawn.
- Open the draws and extensions section to add draw fees, minimum interest, extension fees and selling costs.
- Use the other two tabs. Compare 3 offers prices up to three term sheets on the same deal. Over budget & late shows your profit if the rehab runs over and the sale runs late.
How a hard money loan is calculated
Hard money lenders size the loan on the property, not your income. The loan is the lower of two limits:
Loan = lower of (LTC% × (purchase price + rehab)) and (ARV% × after-repair value)
The rehab is usually held back and released in draws as the work is inspected, so the money you get at closing is the loan minus the rehab holdback:
Down payment = purchase price − (loan − rehab holdback) Cash to close = down payment + points + lender fees + title, appraisal and other closing costs
Most hard money loans are interest-only. The monthly payment is the balance times the rate divided by 12:
Monthly interest = loan balance × annual rate ÷ 12
The total cost of the loan is the interest for the months you hold it, plus points, lender fees, draw fees, any extension fees and any exit fee. Divide that by the loan amount and by the years you hold it, and you get the all-in annual cost, which is the number to compare between lenders, not the headline rate.
Worked example
A $250,000 purchase with a $60,000 rehab and a $420,000 ARV, financed at 85% of cost and 70% of ARV, 11% interest and 2 points, held for 6 months:
| Item | Amount |
|---|---|
| 85% of cost ($310,000) | $263,500 |
| 70% of ARV ($420,000) | $294,000 |
| Loan (the lower figure) | $263,500 |
| Rehab holdback, paid in draws | $60,000 |
| Down payment on the purchase | $46,500 |
| Cash to close (with points, fees and $5,000 closing costs) | $58,270 |
| Interest over 6 months, drawn balance | $13,118 |
| Total cost of the loan | $20,888 |
Charged as Dutch interest on the full $263,500 from day one, the same loan would cost about $1,375 more in interest. That is why the interest basis belongs next to the rate when you compare offers.
What the calculator shows that most don’t
- Dutch vs non-Dutch interest, priced on your actual draw schedule.
- The cash you front before the first draw. Draws reimburse finished work, so you carry each stage until the inspection clears.
- Minimum interest, which can make a quick payoff cost the same as a longer one.
- Extension fees once your hold runs past the loan term.
- A side-by-side comparison of up to three term sheets at 3, 6, 9, 12 and 18 months.
Hard money loan calculator questions
How do you calculate a hard money loan payment?
Most hard money loans are interest-only, so the monthly payment is the outstanding balance times the annual rate divided by 12. A $263,500 balance at 11% is $263,500 × 0.11 ÷ 12 = about $2,415 a month. If interest is only charged on money drawn, the payment starts lower and rises as rehab draws are released.
How much will a hard money lender lend?
Typically up to 80–90% of the total cost (purchase plus rehab) and up to 70–75% of the after-repair value, whichever is lower. Experience matters: investors with several completed deals get the higher limits, first-time investors the lower ones.
What is Dutch interest on a hard money loan?
Dutch interest means you pay interest on the full loan, including the rehab money the lender has not released yet, from the day you close. Non-Dutch interest is charged only on the money actually drawn. On a rehab-heavy loan the difference can run to thousands of dollars, so check the term sheet for which one you are being quoted.
What are points on a hard money loan?
A point is 1% of the loan amount, paid at closing as an origination fee. Two points on a $263,500 loan is $5,270. Points are paid once, so on a short hold they raise the all-in cost a lot more than on a long one.
How much cash do I need to close a hard money loan?
The part of the purchase price the loan does not cover, plus points, lender fees and third-party costs such as title and appraisal. On top of that, budget for monthly interest payments and for the first stage of the rehab, because draws reimburse work after it is done.
What happens if my project runs past the loan term?
Most lenders offer extensions, usually for a fee of 0.5–1% of the loan for each extra three months, and some move the rate to a default rate if the loan matures unpaid. Use the Over budget & late tab to see what a slip does to your profit before it happens.
Does Easy Lending USA charge a fee to look at my deal?
No. There is no application, processing or upfront fee of any kind. We are paid by the lender only when a loan closes.
More investor calculators
Planning to sell? The fix and flip calculator works out your profit and the maximum offer that still hits your target. Keeping it? The BRRRR calculator checks whether the refinance pays off this loan. Holding several term sheets? Use the loan comparison calculator. All tools are on the calculators page.
Program details: hard money loans, fix and flip loans and bridge loans.
Results are illustrative estimates based on the numbers you enter. They are not an offer or commitment to lend. Actual loan amounts, rates and fees are set by the lender after underwriting. Easy Lending USA is not a lender or a mortgage broker; we introduce real estate investors to independent private lenders. Business-purpose loans on non-owner-occupied investment property only.