Hard Money Loan Calculator

A hard money loan calculator shows what you’ll pay on a fix-and-flip or acquisition loan before you write the offer. Enter purchase price, rehab budget, after-repair value, and rate — it returns total loan, monthly interest-only payment, and estimated cash to close. No signup required.

How does the hard money loan calculator work?

Ten inputs, six outputs, one formula:

Total loan = min(purchase × LTV% + rehab × rehab%, ARV × max LTARV%)

Two caps run simultaneously. The lender applies both and uses whichever is lower. A loan-to-cost (LTC) cap limits how much of your acquisition and renovation budget gets financed. A loan-to-ARV cap limits exposure relative to what the property is worth after repairs. When the ARV cap binds, the calculator tells you — that usually means you need more equity or a stronger exit comps story.

The six outputs: total loan amount, which cap bound it, monthly interest-only payment, origination points cost in dollars, total interest over the term, and estimated cash to close (down payment plus points at closing).

How do hard money lenders size a loan?

Hard money underwriting starts with the deal, not the borrower. Two questions drive the sizing:

1. Does the loan-to-cost make sense? Lenders look at what you’re paying for the property and what you’re spending on rehab. The LTC cap — the percentage of total project cost they’ll fund — controls how much equity you have in the deal. Higher equity means lower default risk and typically better terms.

2. Does the loan-to-ARV leave enough room? Even if the LTC looks fine, lenders cap exposure at a percentage of the after-repair value. If the ARV turns out lower than projected — weaker comps, slower market — the lender needs margin. That buffer is built into the LTARV cap.

The rate and points follow from the deal quality. Better comps, cleaner exit, experienced borrower = tighter pricing.

How do you calculate after-repair value (ARV)?

ARV is what the property is worth after all renovation is complete, based on recent comparable sales.

ARV = price per square foot of recent comps × square footage of the subject property (after repairs)

In practice: pull three to five comparable sales within a half-mile in the past six months. Adjust for square footage, bedroom and bath count, lot size, and condition. The adjusted average sale price of those comps is your ARV estimate.

The lender will order their own appraisal or BPO — your ARV estimate just needs to be defensible before you make an offer.

For a deal penciling exercise, many investors use 70% of ARV as the all-in purchase target:

Max Purchase Price = ARV × 70% − Estimated Rehab

That 70% ARV number accounts for lender costs, holding, commissions, and a margin of safety. It is a rule of thumb, not a program term — the actual cap depends on the lender.

Example (illustrative only): ARV $450,000 × 70% = $315,000 max all-in cost. Rehab budget $50,000. Max purchase price = $265,000.

For illustration only. Not a commitment to lend. Rates and terms subject to change and qualification. 1st Nationwide Mortgage Corporation, NMLS #1281. Equal Housing Lender.

What do interest-only payments and origination points actually cost?

Hard money loans are almost always interest-only for the term. No principal paydown. Every payment is:

Monthly IO payment = Loan amount × (annual rate / 12)

For a worked illustration — $275,000 loan at 12% for 12 months: $275,000 × (0.12/12) = $2,750/month. Over twelve months that’s $33,000 in total interest — that goes into your hold-cost calculation before you write the offer.

Origination points are upfront. Two points on $275,000 is $5,500 paid at closing. Points are not the same as interest. They don’t change the monthly payment. They raise your cash-to-close.

For a 12-month project, a rough comparison: add one month of interest for every point, since points increase effective yield. A 12% loan with 2 points has roughly a 14% effective cost over 12 months. When comparing lenders, compare all-in cost (total interest + points), not just rate.

Illustrative figures only. Actual rates and terms vary by deal, borrower, lender, and market conditions. Not a commitment to lend. 1st Nationwide Mortgage Corporation, NMLS #1281. Equal Housing Lender.

What are the exit strategies after a hard money loan?

Hard money is short-term by design — 12 to 24 months. You need a clear exit before you close.

Sale (fix-and-flip): Renovate, list, sell before the term ends. Most common exit. The loan pays off from sale proceeds. Timeline risk is the main variable — cost overruns or a slower market shrink the margin.

Refinance to DSCR (BRRRR): Renovate, stabilize with a tenant, refinance into long-term financing. A DSCR loan replaces the hard money loan once the property is cash-flowing. This requires that the stabilized rent covers the new DSCR payment at 1.00 or better — run the DSCR Calculator before you commit to the refinance exit.

Bridge to commercial: For larger or non-residential deals, the takeout is a commercial loan once the property is stabilized or repositioned. See Bridge Loans → .

The exit changes your underwriting math. A BRRRR exit requires a higher ARV because the permanent lender applies their own DSCR and LTV to the stabilized value. Build in that margin before you buy.

Frequently Asked Questions

Ready to run a full scenario?

This calculator gives you the deal math. For a full eligibility review — lender match, rate, points, draw schedule, and close timeline — talk to a specialist.

Check Hard Money Eligibility →

Call or text: (833) 350-9185

Learn more: Hard Money Loans for Real Estate Investors · Rehab Loans — Purchase + Renovation · DSCR Loan Calculator · All Calculators

For illustration only. Not a commitment to lend. Rates and terms subject to change and qualification. 1st Nationwide Mortgage Corporation, NMLS #1281. Equal Housing Lender.