Estimate the monthly interest-only payment, points, and total cost of a hard money loan for your next deal.
A hard money loan is short-term, asset-based financing used by real estate investors — most often for fix-and-flips or quick acquisitions. The loan is secured by the property rather than your income, funds fast, and is typically interest-only with the principal repaid when you sell or refinance. You pay for that speed and flexibility through a higher rate plus upfront points.
There are three pieces to the cost of a hard money loan:
Borrow $200,000 at 11% for 12 months with 2 points and $1,500 in fees. The interest-only payment is $200,000 × 11% ÷ 12 = about $1,833/month. Points cost $4,000, interest over the year totals $22,000, and with $1,500 in fees the total cost of capital is $27,500. Adjust the inputs above for your own deal.
Hard money rates commonly run in the low-double-digits with 1–3 points, and lenders usually cap the loan at a percentage of the purchase price or the after-repair value (ARV). Terms are short — often 6 to 18 months — because the loan is meant to be a bridge, not a long-term hold. Exact pricing depends on the lender, your experience, and the deal.
Use hard money for speed and renovation deals; refinance into a long-term loan once the property is stabilized. For a buy-and-hold financed on the property’s rent rather than your income, compare a DSCR loan. If you’re running the numbers on a flip, pair this with the Fix & Flip Calculator, and screen the buy with the Cap Rate Calculator.
Pricing varies widely between lenders, so it pays to compare. When your deal is ready, get matched with hard money and investor-friendly lenders for real quotes — no obligation.
Get matched with lenders who specialize in investment property financing. No obligation, no credit check.
Get MatchedA hard money loan is short-term, asset-based financing secured by the property rather than your income. Investors use it for fix-and-flips and quick acquisitions because it funds fast and is usually interest-only.
Most hard money loans are interest-only: the monthly payment equals the loan amount times the annual rate divided by 12. You also pay upfront points (a percentage of the loan) and other fees, and repay the principal when you sell or refinance.
Rates commonly run in the low double digits with 1 to 3 points, though pricing varies by lender, your experience, and the deal. Lenders usually cap the loan at a percentage of the purchase price or the after-repair value.
Typically yes. You pay interest monthly during the short term — often 6 to 18 months — and repay the principal in a lump sum when you sell or refinance the property.
Hard money is short-term financing for acquisition and rehab; a DSCR loan is long-term financing for buy-and-hold, qualified on the property's rental income. Many investors buy and renovate with hard money, then refinance into a DSCR loan.
Analyze potential fix-and-flip deals with detailed profit projections. Input purchase price, renovation budget, holding costs, and expected sale price to calculate your projected profit and ROI.
Calculate the debt service coverage ratio for any investment property. Enter rental income and loan details to see if your property meets lender DSCR requirements and qualifies for investor financing.
Model the full Buy, Rehab, Rent, Refinance, Repeat cycle. Estimate your cash-out refinance proceeds, equity captured, and cash-on-cash return after executing the BRRRR strategy on a value-add deal.