Hard money loan calculator

Use this to get a feel for how a hard money deal pencils out on a Seattle-area investment property: roughly how much you could borrow, how much cash you'd need at closing, and what the monthly interest-only payment looks like. It uses typical market ranges, so treat the results as a starting point, not a quote.

Purchase priceWhat you're paying for the property.Rehab budgetThe renovation funding you'll need. Leave at 0 for a pure purchase or bridge.After repair value (ARV)Your realistic estimate of what it will be worth when the work is done.Your experienceLenders price and size loans partly on track record.One completed project or a GC licence typically moves leverage up a notch.

Interest rateTypical range 9% to 13%.PointsUpfront fee, typically 1 to 3.Term (months)Usually 6 to 24.

Your estimate

Estimated loan amount: $665,000; Capped at 70% of ARV.
Down payment (your equity in the deal): $105,000
Points at closing (2%): $13,300
Estimated closing costs (title, escrow, recording): $6,650
Approximate cash to close: $124,950
Monthly interest-only payment: $6,096
Total interest over 12 months: $73,150

Run your real numbers

Send us the deal and we'll come back with actual figures from a financing partner, usually within 24 hours.

How the math works

Hard money lenders size a loan two ways and take the lower number. The first is a percentage of your total project cost (purchase plus rehab), often 85% to 90% depending on experience. The second is a cap against the after repair value, commonly 65% to 75%. The cap protects the lender if the market moves while you're mid-rehab.

Payments during the loan are almost always interest-only, which keeps the monthly number low while you renovate. The principal comes back in one shot when you sell or refinance. Points are an upfront fee: one point is 1% of the loan amount, paid at closing.

What this calculator doesn't know

Real pricing depends on the property, the neighborhood, your exit plan and the lender's current appetite. Two deals with identical numbers can price differently. That's why the figures above are ranges, and why the next step is a real conversation about your specific project.

Looking at a specific strategy? See how the numbers differ for fix-and-flip loans, DSCR rental loans, bridge loans and new-construction loans.

Disclosure

This calculator is for illustration only. It uses typical market ranges and is not a quote, an offer, or a commitment to lend.

Olympic Hard Money connects real estate investors with specialist financing partners. Terms, underwriting and final approval are set by the funding lender. Financing is for business-purpose investment property. Nothing on this site is a commitment to lend.