Hard Money Loan Calculator

How to use this calculator

Enter the loan amount, interest rate, and how many months you expect to hold the loan. Add your points and any other lender fees. The calculator returns your interest-only payment, total interest, points cost, and the effective annualized cost, plus a table of total cost by hold length.

What the metrics mean

• Points — an upfront fee equal to a percent of the loan amount.
• Interest-only payment — monthly interest with no principal — the standard hard money structure.
• Total cost of capital — points plus all interest over the hold plus lender fees.
• Effective annualized cost — the total cost expressed as an annual rate on the loan.

Frequently asked questions

How does a hard money loan work?

Hard money is short-term, asset-based financing common in flips. It is usually interest-only, with points charged upfront and the full principal due as a balloon when you sell or refinance.

How do you calculate the cost of a hard money loan?

Add the upfront points (a percent of the loan), the interest paid over your hold period (interest-only), and any lender fees. This calculator totals all three and shows an effective annualized cost.

What are points on a hard money loan?

Points are an upfront fee equal to a percent of the loan amount — 2 points on a $200,000 loan is $4,000. They are paid at closing on top of interest.

Why does hold length matter so much?

Because it is interest-only, every extra month adds a full interest payment with no principal reduction. A flip that drags on can quickly erode profit, which is why the cost-by-hold table matters.

Flipping with short-term capital? dre1mery.com folds points and holding interest into every flip underwrite automatically.