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Hard Money Loan Calculator
Short answer
A hard money loan costs points plus interest plus lender fees. Points are the loan amount times the point percentage, interest is the loan amount times the annual rate times months divided by twelve, and fees are added at closing and payoff. On a $180,000 loan at 11.5% for six months with two points, financing costs about $13,950.
What actually makes hard money expensive?
Investors fixate on the rate, but the rate is rarely what kills a deal. Points are charged up front on the whole loan, so two points on a $180,000 loan is $3,600 you never earn back. Fees stack: underwriting, document prep, per-draw inspection, and an exit fee at payoff. And every extra month of holding adds a full month of interest — which is why a slipped rehab schedule costs far more than a half-point higher rate.
How much cash do you still need with 90% financing?
A 90% loan-to-cost loan still leaves you funding 10% of purchase plus rehab, purchase closing costs, all points, and the interest payments during the hold — lenders do not finance their own fees. Model that cash number before you write the offer, then pressure-test the whole deal in the fix & flip analyzer and against the 70% rule ceiling.
Hard money versus DSCR versus private money
Short holds favor hard money, rental exits favor DSCR, and relationships favor private capital. The full breakdown with 2026 pricing is in our fix & flip financing guide, and regional cost assumptions live on the market pages.
Frequently asked questions
How do you calculate the cost of a hard money loan?
Add origination points (loan amount × points %) to interest (loan amount × annual rate × months ÷ 12), then add lender fees such as underwriting, draw, and exit fees. That total, divided by your cash in the deal, is the real cost of the money.
What does a hard money loan cost on a $200,000 flip?
On a $180,000 loan at 11.5% for 6 months with 2 points, interest is about $10,350 and points are $3,600 — roughly $13,950 before lender fees. Longer holds add about $1,725 per extra month.
How much do hard money lenders charge in points?
Most fix & flip lenders charge 1.5 to 3 points on the total loan amount, collected at closing. New borrowers and small loans usually land at 2 to 3 points; repeat borrowers with a track record negotiate toward 1 to 1.5.
Is interest charged on the full loan or only drawn funds?
It depends on the lender. Interest-on-drawn-funds means you only pay interest on rehab money you have actually pulled, which is cheaper. Full-boat or non-dutch interest charges the entire committed amount from day one.
How much cash do I need for a hard money flip?
Plan on the down payment (typically 10 to 20% of purchase plus rehab), purchase closing costs, points, and several months of interest and holding costs. On a $200,000 project that is usually $35,000 to $55,000 in cash.
Is hard money cheaper than a DSCR or private loan?
For a 4 to 8 month flip hard money is usually cheapest to arrange even though the rate is high, because you only pay it for months. DSCR loans fit holds you intend to rent; private money is cheapest when you already have the relationship.