Things to Know About Hard Money Loan Calculator

Short-term financing from hard money lenders is great for flipping, but it might be expensive. Therefore, it's crucial to consider the costs. The complex money loan calculator will display not only the prospective loan amount but also—and this is crucial—the possible upfront expenses, recurring interest fees, and overall expenditures of having the loan throughout the borrowing time.

Whether your loan is based on the purchase price or the after-repair value will determine the amount the complex money loan calculator will produce (ARV). Based on that, the calculator will assist you in deciding whether you need a down payment, and if so, it will estimate how much you should put down. The amount that might be paid to you in cash at closing will be given in its place.

About a hard money loan calculatorAdditionally, based on the percentages and other pertinent statistics you provide, points and interest are converted into cash values. The Hard Money Loan Calculator gives the total costs upfront and recurring.

Inputs for a Hard Money Calculator

You must enter several numbers into the complex money calculator. These comprise the purchase price, the after-repair value (ARV), the cost of repairs, the anticipated loan-to-value ratio by the lender, the interest rate, the length of the loan, and the upfront points and fees.

Purchase Cost

Enter the property's exact purchase price in this field. You can enter an estimated, projected, or expected purchase price if you don't have a purchase price.

Repair Prices

Input your anticipated repair budget here. The cost of repairs includes any hired labor and the materials you must purchase for the repairs.

Estimated Value Following Repair (ARV)

In this section, indicate the expected resale value of the property following renovations if you are undertaking a fix-and-flip. The estimated market value of the home after all maintenance and improvements have been made is known as the ARV.

Percent of the Loan the Lender Will Fund

Choose the portion of the total loan amount you believe the lender will fund using the calculator's slider. You can select between 50 percent to hundred percent.

Select a funding option

Select the appropriate radio button to indicate whether your lender bases the loan amount on the after-repair value, the purchase price (LTV), or the purchase cost plus repairs (LTC) (ARV).

Amount of Loan

Hard Money Loan Calculators are typically made for a limited period, up to two years. Choose a timeline from one to 24 months using the slider. This will be used to compute your interest payments during your loan.

Inflation Rate

Please enter the projected interest rate that you anticipate paying for the loan. Mortgage rates charged by private hard money lenders differ from those of long-term loans provided by banks.

Points and origination fees for loans

Compared to conventional mortgages, hard money lenders can impose a higher upfront fee, typically from one to seven points. In a type of prepaid interest, a point is equal to 1% of the loan balance. Move the slider to choose several points between one and seven.

Placing an estimate of these sums in the final section beneath the points slider can help your lender if you know that additional fees (such as appraisal or loan origination fees) could be added.

Results of the Hard Money Loan Calculator

Multiple figures are calculated via the complex money calculator. The total amount borrowed, the required down payment, any cash given back to the borrower at closing (if applicable), and the dollar amount for the loan's total cost are among these.

Credit Amount

The sum shown here estimates how much you can borrow for the loan. It depends on the details you provided, including the purchase price, the cost of repairs, the after-repair value, and whether the lender bases funding on the purchase prices, the purchase cost plus repairs, or the after-repair value.

The down payment

The complex money calculator will estimate any potential down payment depending on the funding ratio you provided if you specified that the funding is based on the purchase price. Because the loan amount may be equal to or greater than the purchase price, the down payment may show as $0 if the loan is funded on either the purchase cost plus repairs or the ARV.

At Closing: Cash

In some cases, the amount granted will be more significant than the purchase price, especially if the loan is authorized based on the ARV. If so, the estimated amount of any potential cash refund at closing is given.

Points and loan costs are not included in the cash at closing. Usually, these are deducted from any extra funds before the remaining amount is provided to the borrower. A down payment may still be necessary even if the lender bases the loan on the ARV and the amount is more significant than what is required to buy the property.

For instance, even though the loan amount may be more significant than the property's purchase price, the lender will still require a 10% down payment from the borrower if the loan is funded based on 90% of the LTC plus 100% of the repairs.

Upfront payments

The complex money loan calculator will generate a total dollar amount using the points and additional costs.

Costs of Ongoing Interest

Based on the interest rate and holding term you specified, the complex money calculator will calculate the total interest you will pay.

Costs overall for the Hard Money Loan

This sum will represent the expected amount of both the initial outlay and ongoing expenses. It shows how much the hard money funding will cost you overall. Don't forget to deduct other costs from your estimated selling price when calculating prospective profits and hard money costs.

Locations of Calculator Inputs

You might wish to gather a few pieces of information before we discuss the significance of our complex money calculator's outputs so that you are prepared to enter your data. You might want to research a few hard money lenders to learn about interest rates, loan terms, and fees.

The following details should also be gathered:

  • The maximum and minimum loan amounts.
  • The percentage the lender is willing to offer borrowers.
  • The interest rates and the loan origination fees.
  • The loan term.
  • The anticipated repair expenditures.

Further Terminology You Might Use

The loan-to-value used by hard money lenders is a proportion of the appraised value (LTV). Alternatively, some will base the loan on the following worth repairs (ARV). The percentage of the appraised value of a property the lender is willing to give to a borrower to purchase is known as the loan-to-value (LTV).

In three different methods, lenders evaluate the loan amount:

  • After-repair-value (ARV): The property's future value following repairs
  • • Loan-to-value (LTV): A proportion of the value that has been appraised

Loan-to-cost (LTC) is the loan amount divided by the project's overall cost (includes purchase price, renovation costs, and other actual costs to acquire and rehab the property)

Information about applying for a hard money loan

When applying for a hard money loan or other private financing, you will typically need to furnish the lender with certain information, regardless of whether you are in the business of flipping houses or remodeling a rental property that you will eventually refinance with a permanent mortgage lender.

The lender will need the following details, among others:

  • Details regarding the property: Location, building type, size in square feet, lot size, and condition
  • Purchase cost: Although a written purchase and sale agreement is ideal, you might provide an offer price if negotiations are still in their early stages.
  • Project budgetIf you require a rehab loan, present lenders with the budget and the contractor estimates. The lender may ask for specifics on prior projects if you decide to handle them yourself to confirm your abilities.
  • Timeline for the renovationThe lender will be curious to know how long you anticipate the project will take.
  • After repair value (ARV)Conduct a comparative market analysis to determine the property's anticipated after-repair value. 


Although the worth or potential value of the property is often the basis for hard money loans, borrowers should be ready to provide personal financial information and sign personal guarantees—especially if they are new clients.


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