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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

FieldTypeDefaultNotes
Purchase Pricecurrency$200,000Acquisition price
Rehab Budgetcurrency$50,000Renovation cost (most hard money lenders fund rehab draws)
After-Repair Value (ARV)currency$320,000Expected value after renovation

Loan Terms

Typical hard money terms

FieldTypeDefaultNotes
Loan-to-Cost (LTC)percentage85.00%Percent of purchase + rehab the lender funds (85-90% typical)
Max % of ARVpercentage70.00%Loan capped at this percent of ARV (70-75% typical)
Interest Ratepercentage11.00%Interest-only; 10-13% typical in 2026
Pointsnumber2Origination points (1 point = 1% of the loan)
Term (Months)number9How long you expect to hold the loan
Other Feescurrency$1,500Underwriting, 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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