Free Hard Money Loan Calculator

Calculate monthly payments, total interest, and true cost of hard money loans. Free tool for fix-and-flip investors.

Quick Answer

A hard money loan calculator shows the true cost of short-term real estate financing. Enter your loan amount, interest rate, term, and origination points to calculate monthly interest payments, total interest paid, and effective APR — helping you decide if a deal pencils out.

Hard Money Loan Calculator

Loan Amount ($)

Interest Rate (% per year)

Loan Term (months)

Origination Points (%)

1 point = 1% of loan amount, paid at closing

Understanding Hard Money Loans

Hard money loans are short-term, asset-based loans designed for real estate investors who need to act fast. Unlike conventional mortgages, they are funded by private lenders and close in days — not weeks.

Monthly Payment Formula

Monthly Payment = Loan Amount × (Annual Rate / 12)

Typical Hard Money Loan Terms

Interest Rate: 8–15% per year (interest-only payments)
Origination Points: 1–3% of loan amount, paid at closing
Loan Term: 6–24 months, matching the fix-and-flip timeline
LTV: Typically up to 65–75% of ARV

When to Use a Hard Money Loan

Hard money loans work best for fix-and-flip projects where you need quick funding, properties that don't qualify for conventional financing, and situations where speed of closing is a competitive advantage. Always verify that your projected profit covers the higher cost of capital before committing.

Frequently Asked Questions

What is a hard money loan?

A hard money loan is a short-term, asset-based loan for real estate investors, typically lasting 6–24 months with interest rates of 8–15%. It is funded by private lenders and secured by the property, not the borrower's credit score.

What is a good hard money loan rate?

A typical hard money loan ranges from 8–15% interest annually, plus 1–3 origination points. Experienced investors with a strong track record can often secure rates near the lower end of that range.

How are hard money loan payments calculated?

Hard money loans are usually interest-only. Monthly payment = Loan Amount × (Annual Rate / 12). A $200,000 loan at 12% annual interest results in a $2,000 monthly payment, with the full principal due at maturity.

What are origination points on a hard money loan?

Origination points are an upfront fee paid at closing. One point equals 1% of the loan amount. Two points on a $200,000 loan = $4,000 at closing. Points increase the effective APR, especially on shorter terms.

How long are hard money loans?

Hard money loans typically run 6–24 months, with 12 months being the most common for fix-and-flip projects. Extensions are sometimes available if the project runs over schedule.