Hard Money Cost Calculator

Q: What are points on a hard money loan?

Points are an origination fee charged up front, expressed as a percentage of the loan. Two points on a 300,000 dollar loan is 6,000 dollars. Points are paid regardless of how long you hold the loan, so a fast exit does not reduce them.

Q: Are hard money loans interest-only?

Most are. You typically pay only the monthly interest during the term and repay the full principal at the end (at sale or refinance). That keeps the monthly payment lower while you renovate, which is why this calculator models interest-only.

Q: How do I lower the total cost of a hard money loan?

Hold the loan for less time. Points and fees are fixed, but interest is the meter that runs every month, so closing the project and exiting faster is the biggest lever on total cost.

Know the all-in cost before you borrow.

Loan amount$Interest rate%Points (origination)%Loan termmoOther fees$

Total cost of the loan

$22,485

15.0% effective annual cost

Over a 6-month hold, interest-only. The shorter you hold, the less interest you pay, points and fees are fixed.

Origination (2%)$6,000

Monthly interest (interest-only)$2,498

Total interest (6 mo)$14,985

Other fees$1,500

All-in cost$22,485

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Inputs are pre-filled with example figures, edit them to match your deal. Estimates only, for planning purposes, and not a rate quote, an offer, or a commitment to lend. Your actual rate and terms depend on a full review of your deal.

A hard money loan's headline rate is only part of the cost. Origination points and fees are paid up front no matter how long you hold, while interest accrues for the months you keep the loan. This calculator adds it all up so you can compare lenders on total cost, not just the rate.

Common questions

What are points on a hard money loan?

Are hard money loans interest-only?

How do I lower the total cost of a hard money loan?

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