Plan a fix-and-flip loan. Enter the purchase price, rehab budget, ARV and the lender's terms. You'll see how much the lender will fund, the points and interest-only payment, holding costs, total financing cost and the cash you need to bring.
Last updated:
The deal
$
$
$
Expected value once renovated. Leave empty to skip the ARV cap and profit.
%
Commission, closing and transfer costs when you sell.
Lender limits
%
%
%
The loan cannot exceed this share of the ARV.
Loan terms
% / yr
pts
1 point = 1% of the loan, paid at closing.
$
Underwriting, draw inspections, title, legal.
months
Interest charged on
months
Rehab funds are drawn in equal monthly amounts.
$
Property tax, insurance, utilities, HOA.
Enter your values to see the result.
Advertisement
Advertisement
How to use the Hard Money Loan Calculator
Enter the deal: purchase price, rehab budget, after-repair value and selling costs.
Set the lender's limits: % of purchase, % of rehab and the maximum loan-to-ARV.
Add the loan terms: rate, points, fees and how many months you'll hold the property.
Choose how interest is charged: on the full loan, or only on rehab funds as they're drawn.
Review the loan amount, payment and total financing cost, then the cash needed and profit.
How a hard money loan is sized and priced
Hard money lenders are private lenders that fund short-term real estate deals, mostly fix-and-flips. They focus on the property more than on your income. A typical loan funds part of the purchase price and part or all of the rehab, then checks the total against a cap based on the after-repair value (ARV):
Loan = smaller of (price × purchase % + rehab × rehab %) and (ARV × max loan-to-ARV %).
Loan-to-cost (LTC) = loan ÷ (purchase price + rehab). Loan-to-value (LTV) is usually measured against the purchase price or the as-is value. Loan-to-ARV = loan ÷ ARV.
Points are upfront fees: 1 point = 1% of the loan amount, usually paid at closing.
Payments are normally interest-only: monthly interest = outstanding balance × annual rate ÷ 12, with the full balance due when you sell or refinance.
Rehab money is usually released in draws after inspections. Some lenders charge interest only on the funds drawn so far; others charge on the full loan from day one, sometimes called Dutch interest. The calculator models both.
Cost of a $250,000 hard money loan
Rate
Points
Monthly interest
Points cost
Cost for 6 months
Cost for 12 months
10%
1
$2,083.33
$2,500
$15,000
$27,500
11%
2
$2,291.67
$5,000
$18,750
$32,500
12%
2
$2,500.00
$5,000
$20,000
$35,000
13%
3
$2,708.33
$7,500
$23,750
$40,000
Interest on the full loan plus points, before other lender fees and holding costs. Rates, points and leverage limits vary widely by lender, market and experience. These are illustrations, not quotes.
Tips for fix-and-flip financing
Budget for time overruns. Every extra month adds interest and holding costs. Run the numbers with a longer hold as well.
Know the extension terms. Missing the maturity date can trigger extension fees or default interest.
Check prepayment rules. Some lenders charge a minimum number of months of interest even if you sell early.
Keep reserves. The unfunded part of the rehab, the interest payments and the holding costs all come from your own cash before the sale.
Be conservative with ARV. Base it on recent comparable sales. The profit estimate is very sensitive to it.
Frequently asked questions
How is a hard money loan amount calculated?
Most lenders fund a percentage of the purchase price (often 80% to 90%) plus a percentage of the rehab (often up to 100%), then cap the total at a share of the after-repair value, commonly 65% to 75%. The loan is the smaller of the two numbers.
What are points on a hard money loan?
Points are upfront fees as a percentage of the loan: one point is 1%. Two points on a $250,000 loan cost $5,000, usually paid at closing or deducted from the loan proceeds.
How do I calculate the monthly payment on a hard money loan?
Hard money loans are usually interest-only. Multiply the outstanding balance by the annual rate and divide by 12. A $250,000 loan at 11% is about $2,291.67 a month, and the principal is repaid when you sell or refinance.
What is the difference between LTV, LTC and ARV?
LTV compares the loan to the property's current value or price. LTC compares it to the total project cost, meaning price plus rehab. ARV is the expected value after repairs, and loan-to-ARV compares the loan to that future value.
Do I pay interest on rehab funds before they are drawn?
It depends on the lender. Some charge interest only on money actually drawn. Others charge on the full approved loan from closing, which raises the cost. Ask before you sign and use the interest option in the calculator to compare.
What is the 70% rule in house flipping?
It is a rule of thumb: pay no more than 70% of the after-repair value minus the rehab cost. With a $400,000 ARV and $60,000 of repairs, the maximum offer would be $220,000. It leaves room for financing, holding, selling costs and profit.
Is this calculator private?
Yes. All the math runs in your browser and nothing you enter is uploaded or stored on a server.
Are all the tools on FreeToolCabin tested for quality and accuracy?
Yes! Every tool on our site undergoes automated Q/A testing in real browser environments to ensure high precision, correct output, and zero errors. If you happen to spot a bug or have a suggestion, please contact us at [email protected] and our team will review it right away.