Hard Money Loan Calculator
What hard money actually costs a flipper: interest-only payments, origination points, total cost of capital over the hold, and the effective annualized rate — including the minimum-interest guarantee. Free planning estimate, no sign-up.
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Quick Answer
Hard Money Loan Calculator estimates monthly interest-only payment of $2,708 and total interest over hold of $32,500 for this scenario.
Key Takeaways
- Hard Money Loan Calculator estimates monthly interest-only payment of $2,708 and total interest over hold of $32,500 for this scenario.
- Twelve months at 13% with 3 points is where hard money stops being a bridge and starts being a burden. On $250,000, the interest-only payment is $2,708 a month — $32,500 over the full year — plus $7,500 in points, for a total cost of capital of $40,000. That is 16.0% of the loan amount consumed by financing alone.
- Because carrying cost compounds monthly with no revenue offset: at $3,333 a month all-in, each extra quarter costs about $10,000, and delays tend to chain — a contractor slip pushes the listing into a slower season, which adds more interest. The 12-month total here is $40,000.
Calculation Output
Monthly Interest-Only Payment
$2,708
Total Interest Over Hold
$32,500
Origination Points / Fees
$7,500
Total Cost of Capital
$40,000
Effective Annualized Cost
16.0%
All-In Monthly Carrying Cost
$3,333
Result Chart
Monthly Interest-Only Payment
$2,708
Total Interest Over Hold
$32,500
Origination Points / Fees
$7,500
Total Cost of Capital
$40,000
Effective Annualized Cost
16.0%
Key Facts
| Monthly Interest-Only Payment | $2,708 |
|---|---|
| Total Interest Over Hold | $32,500 |
| Origination Points / Fees | $7,500 |
| Total Cost of Capital | $40,000 |
| Effective Annualized Cost | 16.0% |
| All-In Monthly Carrying Cost | $3,333 |
How This Estimate Works
- Twelve months at 13% with 3 points is where hard money stops being a bridge and starts being a burden. On $250,000, the interest-only payment is $2,708 a month — $32,500 over the full year — plus $7,500 in points, for a total cost of capital of $40,000. That is 16.0% of the loan amount consumed by financing alone.
- Long holds kill flips through carrying cost, not through any single dramatic event. At $3,333 a month all-in, every quarter of delay costs roughly $10,000 — and delays compound: a contractor slip pushes the listing into a slower season, which pushes the sale, which adds more interest. Before committing to a 12-month plan, the question to answer in the fix-and-flip calculator is whether the deal still profits after $40,000 of financing plus a realistic overrun, not after the optimistic version of both.
- The annualized figure makes the creep visible: $40,000 over 12 months annualizes to 16.0% — the quoted 13% plus the full weight of 3 points, with no short-hold compression to hide behind. On a 12-month hold the points stop being the story and the rate is: $32,500 of interest is nearly 81.3% of everything this loan costs. Rate shopping matters more the longer you hold; points shopping matters more the shorter you hold.
- This profile assumes an 18-month term, so the 12-month hold still has extension room — but do not read that as comfort. An 18-month note on a 12-month plan means the lender already priced in the possibility that you run long, and the rate reflects it. If the property stabilizes and the plan flips to hold, the BRRRR calculator's refinance leg is the exit: the refinance lender will underwrite the property's rent against permanent debt, and the longer this loan runs, the more of the deal's equity it consumes before that refinance ever happens.
- Budget $3,333 a month all-in, and treat month 12 as a deadline, not a milestone. This is an educational planning estimate, not lending advice and not a lender recommendation. Actual terms vary by lender, property, experience, and market; figures exclude extension fees, draw and inspection fees, appraisal, legal, and closing costs beyond origination points unless noted. No lead-gen form lives on this page, and no lender is endorsed here.
FAQ
Why do long hard money holds hurt more than the rate suggests?
Because carrying cost compounds monthly with no revenue offset: at $3,333 a month all-in, each extra quarter costs about $10,000, and delays tend to chain — a contractor slip pushes the listing into a slower season, which adds more interest. The 12-month total here is $40,000.
What are typical hard money terms in 2026?
Roughly 9–13% annual rate, 1–3 origination points, 65–75% loan-to-value (or of after-repair value), 6–24 month terms, interest-only payments, and funding in days rather than weeks. Terms vary by lender, property, and borrower experience.
Why is the effective annualized cost higher than the quoted rate?
Because points are paid up front and never amortized: on a short hold, a 2-point fee is a large share of the loan compressed into a few months. Annualizing over the actual hold — not the note term — is the only honest comparison between two hard money quotes.
Is this calculator a lender recommendation or a loan offer?
Neither. It is an educational planning estimate with no lender endorsements and no lead-gen form. Actual terms depend on the lender, the property, and your track record; confirm any quote in writing before relying on it.
What is this $250K hard money estimate not telling me?
It excludes extension fees, draw and inspection fees, appraisal, legal, and closing costs beyond origination points, and it cannot see your lender's fine print — minimum-interest guarantees, prepayment terms, and extension pricing all change the real number. Read the note, not just the rate sheet.