⚡ Financing
Hard Money Loan
Calculator
Calculate the true all-in cost of a hard money loan — points, interest, origination fees — so you know exactly what your capital costs before you close.
Hard money loans are short-term, asset-based loans from private lenders. They close fast (days vs weeks) and don't require W2 income verification — but they cost more. Points (upfront fees) of 2-4% and interest rates of 10-15% are typical. Use this calculator to compare scenarios and model your total cost of capital.
Total Cost of Capital
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Effective annual rate: 0%
Points Cost
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Upfront at closing
Total Interest
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Over loan term
Monthly Interest
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Interest-only payment
Implied Property Value
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Loan amount ÷ LTV%
Full Cost Breakdown
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Origination & Other Fees—
Total Interest (full term)—
Extension Fee—
Total Cost of Capital—
Cost as % of Loan—
Effective Annual Rate (APR)—
Compare your financing options
Hard money for speed and flexibility, conventional for long-term holds. Know your options before you commit.
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Frequently Asked Questions
What are typical hard money loan terms? ▾
Hard money loans typically feature: Interest rates of 10-15% annually; Points (origination fees) of 2-4%; Terms of 6-18 months; LTV of 65-75% of ARV or purchase price (whichever is lower); Interest-only monthly payments with a balloon payment at maturity. They close in 5-14 days vs 30-45 for conventional loans. Speed and flexibility are what you pay for.
When should I use a hard money loan? ▾
Hard money is ideal when: (1) You need to close fast (competitive market, auction purchase); (2) The property won't qualify for conventional financing due to condition; (3) You're a fix-and-flip investor who will sell or refinance within 12 months; (4) You're doing a BRRRR and will refinance into a DSCR loan after stabilization; (5) You're self-employed or have complex income that makes conventional qualifying difficult.
How do I exit a hard money loan? ▾
The two main exit strategies are: (1) Sell the property — for fix-and-flip investors, the sale pays off the hard money loan and returns profit; (2) Refinance into a long-term loan — for BRRRR investors, a cash-out refinance after renovation and lease-up pays off the hard money loan and leaves the investor with a conventional 30-year mortgage. Always have your exit strategy planned before you take out the hard money loan.