Hard Money Loan Calculator

Hard Money Loan Payment Example

For a $200,000 purchase with a $30,000 rehab budget and a $300,000 after-repair value, enter a $150,000 loan, 12% annual interest, 3 points, a $995 documentation fee, and a six-month term. These are illustrative inputs, not a quote for your property.

Example Results for a $150,000 Interest-Only Loan

Estimate	Amount
Monthly interest payment	$1,500
Origination points	$4,500
Cash to close before other closing costs	$55,495
Six-month financing cost	$14,495
Loan-to-purchase-price ratio (LTV estimate)	75%
Loan-to-cost ratio (LTC)	65.2%
Loan-to-ARV ratio	50%

How the Loan Calculator Works

• Monthly interest: loan amount multiplied by the annual interest rate, divided by 12. In this example: $150,000 × 12% ÷ 12 = $1,500.
• Points: loan amount multiplied by the points percentage. Here: $150,000 × 3% = $4,500.
• Cash to close: the purchase price minus the loan amount, with that difference never below zero, plus points and the documentation fee. Here: $50,000 + $4,500 + $995 = $55,495.
• Financing cost: monthly interest multiplied by the number of months, plus points and the documentation fee. Here: $1,500 × 6 + $4,500 + $995 = $14,495.
• Leverage: divide the loan amount by the purchase price for the LTV estimate, by purchase plus rehab for LTC, or by after-repair value for loan-to-ARV.

The calculator assumes the full loan amount is outstanding for the whole term and uses equal monthly interest periods. Interest-only payments do not reduce the principal. In this example, the $150,000 principal must still be repaid at payoff, separately from the financing cost shown above.

Title charges, taxes, insurance, utilities, reserves, and other third-party costs are not included. The rehab budget affects LTC but is not added to the calculator's cash-to-close estimate.

Cash to Close With a Rehab Holdback

If $30,000 of the $150,000 loan in the example is held in escrow for rehab, $120,000 is available for the purchase at closing. On the same $200,000 purchase, you would bring $80,000 toward the purchase price. With the same $4,500 in points and $995 documentation fee, estimated cash to close is $85,495 before other closing costs, compared with $55,495 if the full loan funds at closing.

The Cedar Top draw process explains when rehab funds are released. Confirm the amount available at closing and how interest is calculated with your lender, and confirm other closing costs with your title company.

How to Use This Calculator

Hard money is priced on the deal, not on your pay stubs. Instead of your income and credit driving the decision, the property and the numbers do. This tool shows the three things that matter most before you make an offer: how much you can borrow, what it costs to carry the loan, and how much cash you bring to the table.

Here is what each input means:

• Purchase price. What you are paying for the property.
• Rehab budget. Your estimated cost to renovate. On many of our programs this is advanced in draws as the work gets done, not handed over up front.
• ARV (after-repair value). What the finished property is worth. Most hard money limits are set as a share of ARV, so a realistic ARV matters more than almost anything else you enter.
• Requested loan amount. How much you want to borrow. Every result keys off this number, and the leverage ratios show how it compares to the property.
• Interest rate, points, and term. Your loan pricing. Hard money is short and usually interest-only, so your monthly cost is mostly interest. One point is one percent of the loan, paid at closing.
• Doc fee. Enter the documentation fee for your loan. The default is $995; check your program's published terms.

The results panel shows LTV, LTC, and loan-to-ARV: the three ratios lenders cap a loan against (current value, total cost, and finished value). We look at all three.

For our current ranges, see the full rates and terms. The figures here are estimates to help you plan, not a quote or a commitment to lend.

What Underwriting Looks At

We underwrite every loan in-house, so we are not just running your numbers through a formula. The same few things trip investors up again and again: an ARV that is a little too hopeful, a rehab budget with no room for surprises, and holding costs (taxes, insurance, utilities, and interest while the property sits) that quietly eat the profit. Account for costs this calculator does not include in your project budget. When you are ready, call 817-984-3129 and we can usually tell you quickly whether your deal pencils. You can also compare our loan programs or run a full fix and flip profit estimate.