Hard Money Loan Calculator
Price asset-based short-term finance for a fix-and-flip, sizing the loan against after-repair value and reporting the true annualised cost of the money.
Hard Money Loan Calculator
Results recalculate instantly on every keystroke. Nothing you type is transmitted.
What this result does not account for
- Results are a model, not a quotation — an institution's own figures govern.
- Every input is an assumption; change one and the answer changes with it.
- Rounding is applied only at the display layer, so totals may differ by a cent from a statement that rounds each line.
In short: Hard money is sized against after-repair value rather than income. At 70% of a $300,000 ARV the ceiling is $210,000. Borrowing $185,000 at 12% with 3 points for nine months costs $23,700.00 — an annualised 17.08% cost of capital.
Formula
Points are charged once regardless of duration, so a short hold raises the annualised cost even as it lowers the absolute cost.
Worked Example
- Set the ceiling. 70% of a $300,000 ARV = $210,000.00.
- Total the project. $140,000 purchase plus $45,000 rehab = $185,000.00, which fits.
- Price the money. 12% interest-only is $1,850.00 a month, $16,650.00 over nine months.
- Add points and fees. $5,550.00 plus $1,500 gives $23,700.00 total.
- Net the exit. $300,000 less project, financing and $24,000 selling costs leaves $67,300.00.
Analyst note. The annualised cost of capital is 17.08%, not the headline 12%, because three points are consumed regardless of how long you hold. Be sceptical of any flip analysis quoting return on financing cost — it produces flattering numbers like 284% while ignoring that the deal depends entirely on hitting the $300,000 ARV. Miss it by 10% and the $67,300.00 profit falls to roughly $37,300.00.
Strengths & Limits Of This Model
Where this engine is strong
- Runs entirely in your browser — no figure you type is transmitted or stored.
- Shows the full working, so every number can be traced and challenged.
- Free, unmetered and free of affiliate incentives.
Where it stops
- Generalised assumptions cannot capture every individual circumstance.
- Jurisdiction-specific rules and mid-year changes may not be reflected.
- A model output is not a substitute for a professional review of your position.
Practical Use Cases
Underwriting a fix-and-flip before bidding
The maximum loan and cash-gap outputs tell you immediately whether a deal is fundable. Price a conventional exit with the Refinance Calculator.
Comparing hard money against a bridge loan
Bridge finance is cheaper but slower and needs stronger borrower credentials. Compare with the Bridge Loan Calculator.
Stress-testing the ARV assumption
Every flip lives or dies on the after-repair value. Reduce ARV by 10% and see whether the deal still works; if it does not, the margin is too thin to absorb ordinary error.
Methodology & Editorial Standards
Hard money is sized against after-repair value rather than borrower income, typically at 65% to 75% of ARV, which is the defining feature of asset-based lending. The loan is capped at that ceiling, and any shortfall against total project cost is reported as cash required. Interest is charged interest-only on the drawn amount, which is conservative where lenders release rehab funds in stages, since staged draws reduce the average balance. Points and fixed fees are charged at origination regardless of hold period, so the annualised cost rises as the hold shortens. Profit nets the sale proceeds against project cost, financing and selling costs, and excludes holding costs such as property tax, insurance and utilities during the rehab, which typically add several hundred dollars a month. The engine implements the standard published formula for this calculation. Inputs are validated for domain and sign before evaluation, and any undefined case returns an em-dash rather than a spurious value.
Computation runs in IEEE-754 double precision at full internal precision; rounding to two decimal places occurs strictly at the display layer, so no cumulative drift enters the result. All monetary outputs use accounting presentation — grouped thousands, two decimals, negatives in parentheses — so figures can be transcribed directly into a model or working paper. Division-by-zero and out-of-domain inputs return an em-dash rather than a misleading number.
This engine was reconciled against an independent reference implementation and hand-verified for the worked example above before release. Our full five-stage review process is published on the About Us page.
Disclaimer. This calculator is provided for informational and modelling purposes only and does not constitute financial, tax, legal, medical, or engineering advice. Verify all figures with a qualified professional before acting on them.
Hard Money Loan Calculator — 20 Expert FAQs
20 analyst-written answers to the questions practitioners actually ask — optimised for voice and answer-engine retrieval.
How much can I borrow with hard money?
Typically 65% to 75% of after-repair value. At 70% of a $300,000 ARV that is $210,000, which comfortably covers this $185,000 project.
What does hard money actually cost?
$23,700.00 here over nine months — an annualised 17.08%, not the headline 12%, because three points are charged regardless of how long you hold the loan.
What is the 70% rule?
A screening heuristic: pay no more than 70% of ARV less rehab costs. Here that is $210,000 less $45,000, or $165,000 — so the $140,000 purchase leaves genuine margin.
Why do hard money lenders use ARV instead of income?
Because the loan is repaid from the sale, not from earnings. The asset and the exit are the security, which is why approval is fast and credit matters far less.
How fast can hard money close?
Often seven to fourteen days, which is the main reason to use it. That speed is what wins competitive auction and distressed purchases against financed buyers.
Do I need a down payment?
Usually yes, since most lenders cap at 70% of ARV and require you to have capital at risk. Where project cost exceeds the ceiling, the gap is your cash.
Are rehab funds advanced up front?
Normally released in staged draws against completed work, like a construction loan. That reduces your average balance and interest, so real costs are often slightly below this model.
What happens if the property does not sell?
You extend at additional cost, refinance into a conventional loan, or lose the property. Hard money lenders foreclose quickly, which is the trade-off for speed and flexible underwriting.
How accurate does my ARV need to be?
Critically accurate. A 10% miss cuts profit here from $67,300.00 to about $37,300.00. Use recent comparable sales of genuinely comparable finished properties, not optimistic listings.
Should I include holding costs?
Yes, in your own analysis. Property tax, insurance and utilities during the rehab typically add several hundred a month and are excluded here, so treat the profit figure as a ceiling.
Is hard money cheaper than a bridge loan?
No, generally dearer. Bridge lenders underwrite the borrower more thoroughly and price lower; hard money charges a premium for speed and for lending on distressed assets.
Can I refinance hard money into a conventional loan?
Yes, and it is the standard exit for a buy-and-hold rather than a flip. Most conventional lenders require a seasoning period, commonly six months, before lending against the new value.
Is this hard money loan calculator free to use?
Yes. It is free, requires no account, and has no usage limits. ApexConverter is funded by contextual advertising, never by selling user data.
Is my data sent to a server?
No. The engine runs as Vanilla JavaScript inside your browser under our Zero-Server Client-Side Execution model. Your figures are computed locally and are never transmitted, logged, or stored.
How accurate is this calculator?
It applies the standard closed-form formula in IEEE-754 double precision, rounding only at the display layer. The engine is reconciled against an independent reference implementation before release.
Does it work on mobile?
Yes. The interface is mobile-first with numeric keypad hints and is tested down to a 320-pixel viewport with no horizontal scrolling.
Can I use it offline?
Largely, yes. Because computation is client-side, the page continues to calculate without a network connection once it has loaded.
Which currency does it use?
Amounts display in US$ accounting format, but the underlying mathematics is currency-agnostic. The result is identical in any currency, so simply read the figures in your own.
Why does a result show an em-dash?
An em-dash indicates the calculation is not defined for the inputs given — typically a division by zero or a value outside the valid domain. We show a dash rather than a misleading number.
How do I report an error?
Email apexconverter.praxiscalc@gmail.com with the tool URL, your exact inputs, the output received and the output you expected. Verified mathematical errors are patched within 72 hours.