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Hard money loan calculator.
What you need at the table, and what the money costs across the hold. Purchase, rehab, advance rate and the ceiling on finished value, all of it yours to change.
Purchase and rehab are financed together, with rehab released in draws against completed work, so interest here is charged on the drawn balance rather than the whole facility. The loan is the lower of the advance against cost and the ceiling against after repair value. The rate below is an assumption you can change, not a quote: pricing is set by credit, experience and the deal. The advance and ceiling are typical rather than a quote. Your term sheet is what governs.
Cash to close
You need $31,955 at the table, and about $40,343 in the deal across 5 months once interest is added. Monthly carry for taxes, insurance and utilities sits on top of that; the flip tool charges it.
Get terms on this deal
This sends the numbers above straight to me. You get a written term sheet inside 24 to 48 hours, and a straight answer if it does not work.
How to read it
What the number means.
Two ceilings decide how much a lender will advance, and the binding one is not always the obvious one. There is a percentage of the purchase price, and there is a percentage of the finished value that the whole loan has to sit under. Whichever produces the smaller number is the one you are actually borrowing against, and the gap between that and the purchase price is your down payment.
The second thing this works out is the carry. Interest is charged on the drawn balance rather than on the full facility, because rehab is released in draws against completed work rather than handed over at closing. That makes the real cost of the money sensitive to how long you hold, which is the line most first deals underestimate.
Everything below is an assumption you can change rather than a quote. Pricing is set by credit, experience and the deal, and no calculator can price a property it has not seen.
Questions
About the arithmetic.
What is cash to close?
Everything you have to bring on the day: the part of the purchase the loan does not advance, the points, the buy-side closing costs, and any reserve for the carry. It is not the same as the down payment, and treating it as though it is the single most common reason a first deal runs short at the table.
Why does the loan get sized on finished value?
Because that is what secures it. A lender is lending against what the property will be worth when the work is done, so the whole facility has to sit comfortably under a percentage of that number. If your finished value is optimistic, the loan shrinks.
Is the rate in this calculator your rate?
No. It is a figure you set so the arithmetic has something to work with. Pricing is set per borrower and per deal, and your number appears in a written term sheet rather than on a page.
Does this include the cost of selling?
No, this one stops at what the money costs you to hold. Use the fix and flip calculator for the full round trip including sale costs and profit.
Method
Where these numbers come from.
What a hard money loan actually costs, in full
Rate is the number everyone asks about and rarely the largest cost. Here is the whole bill on a real deal, priced line by line.
Hard money loan requirements: what a lender actually checks
Hard money is underwritten on the property and the exit, not your tax returns. Here is the full list of what gets checked, and what does not.
Holding costs: the line item that quietly eats the profit
Holding costs are small every month and decisive over a project. They are also the number investors most reliably leave out of the model.
Other tools
The rest of them.
Fix and flip calculator, ARV calculator, BRRRR calculator, DSCR calculator, Rehab cost calculator, Construction loan calculator, Rental portfolio calculator, Transactional funding calculator.
This is an estimating tool. It runs arithmetic on the figures you enter using the assumptions stated above, and changing an assumption changes the answer. The result is not a quote, an approval, an appraisal, a valuation, or a prediction of what a property will sell for, and it does not commit anyone to lend. Costs, taxes and market conditions vary by location and change over time. Check the numbers that matter against your own contractor, agent and professional advisers before you commit to a deal.
When the numbers work
Get it priced.
A calculator cannot see your property. Send the deal and you get written terms in 24 to 48 hours, with no credit pull to get a number.