Hard Money Loan Calculator

Key Takeaways

• Hard Money Loan Calculator estimates monthly interest-only payment of $3,333 and total interest over hold of $20,000 for this scenario.
• Hard money exists for one reason: speed. A bank might take 45 days to fund a flip; a hard money lender commonly funds in 5–10 days, and that speed is what lets you win the deal at all. The price is a rate no bank would charge — here 10% — plus 2 points at closing. On $400,000, the interest-only payment is $3,333 a month, which is the number that actually leaves your account while you own the property.
• Speed and certainty: hard money funds in days, which wins deals banks cannot close in time, and it underwrites the property rather than the borrower's W-2. On a 6-month hold the premium is bounded — here ${toCurrency(output.totalCost)} all-in — and the deal either justifies it or it does not.

Calculation Output

Result Chart

Key Facts

How This Estimate Works

• Hard money exists for one reason: speed. A bank might take 45 days to fund a flip; a hard money lender commonly funds in 5–10 days, and that speed is what lets you win the deal at all. The price is a rate no bank would charge — here 10% — plus 2 points at closing. On $400,000, the interest-only payment is $3,333 a month, which is the number that actually leaves your account while you own the property.
• Over a 6-month hold, the interest totals $20,000 and the points add $8,000 at closing, for a total cost of capital of $28,000. That is the figure to carry into the fix-and-flip calculator's profit math: it comes straight off the top of the deal, before rehab overruns, carrying costs, or selling costs. On a short hold the points are the heavy part — $8,000 is 2.0% of the loan, paid on day one, and it does not shrink because you sold fast.
• The honest comparison is not "10% versus a bank's 7%." It is "10% for six months versus no deal at all," plus the annualized reality: $28,000 on $400,000 over 6 months annualizes to 14.0% — well above the quoted 10% rate, because the points are front-loaded into a short window. That gap between quoted rate and effective cost is the single most underpriced number in flip underwriting, and it is why this calculator annualizes over the actual hold instead of quoting rate and points separately.
• The risk on a quick flip is rarely the rate — it is the timeline. Every month past month 6 adds another $3,333 of interest, and a 6-month plan that becomes a 9-month reality costs $10,000 more in interest alone. If the exit is a refinance into permanent debt rather than a sale, run the BRRRR calculator's refinance leg next: the DSCR on the stabilized rent has to cover a loan that replaced this one, and the refinance has to close before this note's term expires.
• All-in, this loan costs $4,667 a month when the points are spread across the hold — the carrying-cost line to budget against, not just the $3,333 interest payment. 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.

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