Calculator Documentation
Hard Money Loan Calculator
Size a hard money loan and see its true cost: points, carry, and fees
Schema version 1.0.0 · Category: investment
Inputs
The Deal
Purchase, rehab, and ARV
| Field | Type | Default | Notes |
|---|---|---|---|
| Purchase Price | currency | $200,000 | Acquisition price |
| Rehab Budget | currency | $50,000 | Renovation cost (most hard money lenders fund rehab draws) |
| After-Repair Value (ARV) | currency | $320,000 | Expected value after renovation |
Loan Terms
Typical hard money terms
| Field | Type | Default | Notes |
|---|---|---|---|
| Loan-to-Cost (LTC) | percentage | 85.00% | Percent of purchase + rehab the lender funds (85-90% typical) |
| Max % of ARV | percentage | 70.00% | Loan capped at this percent of ARV (70-75% typical) |
| Interest Rate | percentage | 11.00% | Interest-only; 10-13% typical in 2026 |
| Points | number | 2 | Origination points (1 point = 1% of the loan) |
| Term (Months) | number | 9 | How long you expect to hold the loan |
| Other Fees | currency | $1,500 | Underwriting, doc, draw inspection fees |
Calculations
Every figure this calculator produces, in evaluation order. Formulas reference input ids, parameters, and earlier calculations.
totalCostTotal project cost
purchasePrice + rehabBudget
ltcLoanAmountLoan sized by loan-to-cost
totalCost * loanToCost
arvLoanCapLoan cap from ARV
arv * maxARVPercent
loanAmountFunded loan: the lesser of LTC sizing and the ARV cap
min(ltcLoanAmount, arvLoanCap)
cashNeededCash you must bring to cover the gap (before points/fees)
max(totalCost - loanAmount, 0)
pointsCostOrigination points cost
loanAmount * points / 100
monthlyInterestInterest-only monthly carry
loanAmount * interestRate / 12
totalInterestInterest over the hold
monthlyInterest * termMonths
totalFinancingCostTrue cost of the money
pointsCost + totalInterest + otherFees
annualizedCostRateEffective annualized cost of the borrowed funds
(totalFinancingCost / max(loanAmount, 1)) * (12 / termMonths) * 100
totalCashRequiredTotal cash to close (gap + points + fees; interest paid monthly)
cashNeeded + pointsCost + otherFees
arvCapBindingFlag: the ARV cap (not LTC) limits this loan
if(arvLoanCap < ltcLoanAmount, 1, 0)
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