Hard Money Loan Calculator

Calculate the true cost of a hard money loan including origination points, monthly interest payments, and total financing costs. See your effective APR and understand what you are really paying for fast capital.

Loan Details

Loan Cost Analysis

Monthly Payment
$2,000
Interest Only
Total Interest
$12,000
6 months
Lender Fees
$5,500
Points + Fees
Total Cost of Loan
$17,500

Cost Breakdown

Origination Points (2%)$4,000
Other Lender Fees$1,500
Total Interest (6 months @ 12%)$12,000
Total Cost of Borrowing$17,500
Effective APR: 17.5%

When you factor in points and fees, the true annual cost of this loan is much higher than the stated 12% rate. This is normal for hard money - speed and flexibility come at a premium.

See the Full Picture

Include these loan costs in a complete flip analysis to calculate your true profit and ROI.

Full Flip Calculator

Frequently Asked Questions

What is a hard money loan?

Hard money loans are short-term, asset-based loans from private lenders. They are secured by real estate and used primarily by flippers who need fast closings. Rates are higher (10-15%) with 2-4 points.

What are origination points?

Points are upfront fees charged as a percentage of the loan amount. 2 points means you pay 2% of the loan amount at closing. A $200,000 loan with 2 points costs $4,000 in points.

Are hard money loans interest-only?

Most hard money loans are interest-only during the term, with the full principal due at maturity (balloon payment). This keeps monthly payments lower during the renovation period.

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