Use this calculator to estimate the monthly payment and total cost of a hard money loan before you commit to a deal. Hard money loans are typically interest-only: you pay interest each month and repay the principal when you sell or refinance. That makes the math different from a conventional mortgage — and makes points, fees, and hold time matter much more.
Hard Money Loan Calculator
How the math works
Hard money loans are usually structured as interest-only with a balloon repayment at exit. The calculator uses the standard formulas:
- Monthly payment = loan amount × (annual rate ÷ 12). A $250,000 loan at 12% costs $2,500 per month in interest.
- Points are prepaid interest charged at closing. One point = 1% of the loan amount, so 2 points on $250,000 is $5,000.
- Total financing cost = all monthly interest over your hold period, plus points, plus any flat lender fees. This is the number to weigh against your projected profit on the deal.
- Loan-to-ARV = loan amount ÷ after-repair value. Most hard money lenders cap this ratio — it is the single most important underwriting number on a fix-and-flip deal.
What this means for your deal
The biggest driver of total cost is hold time. Because payments are interest-only, every extra month adds a full month of interest with no principal reduction. A flip that exits in 6 months instead of 12 cuts the interest cost in half — which is why experienced investors model a realistic timeline before they borrow, and why we underwrite the exit strategy as carefully as the property itself.
Hilton Financial Corporation has funded over $1 billion in investor deals since 1980. If the numbers above work for your project, start an application or review our Arizona lending programs and all lending locations.
Frequently asked questions
Why are hard money payments interest-only?
The loan is short-term financing against an asset that will be sold or refinanced. Amortizing principal over 6–18 months would create enormous payments; interest-only keeps carrying costs manageable while the investor executes the project.
What do points actually pay for?
Points are the lender’s origination compensation, paid at closing. They are part of the true cost of capital: a loan at a lower rate but more points can cost more than a higher-rate loan with fewer points on a short hold — run both scenarios in the calculator.
Does this calculator show my exact loan terms?
No — it is an estimating tool. Every deal is priced on the property, the exit strategy, and the borrower’s experience. The results are not a quote, an offer, or a commitment to lend. Contact us for actual terms on your project.
What loan-to-ARV do lenders typically allow?
It varies by lender, market, and deal type. Enter your numbers above to see where your deal lands, and we can tell you quickly whether it fits our programs.
Estimates are for planning purposes only and do not constitute a loan offer, quote, or commitment to lend. Actual rates, fees, and terms vary by transaction. Hilton Financial Corporation, NMLS 143636.