Hard Money Loan Calculator
Calculate the total cost and monthly payments for a hard money loan. Input loan amount, interest rate, loan term, points, and other fees to see a detailed breakdown.
Published by:
isCalculator Editorial Team
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How to use this tool?
This calculator helps you estimate the total cost of a hard money loan, including interest, points, and fees. Follow these steps:
- Enter Loan Amount ($): The total principal you are borrowing (e.g., 100000).
- Enter Annual Interest Rate (%): The yearly interest rate (e.g., 12 for 12%).
- Enter Loan Term (months): The duration of the loan in months (e.g., 12).
- Enter Points (%): Any upfront points as a percentage of the loan amount (e.g., 2 for 2%). Default is 0.
- Enter Other Fees ($): Any additional fees in dollars (e.g., 1000). Default is 0.
- Click "Calculate": The results will show your monthly payment, total interest, points cost, other fees, total loan cost, and APR.
Note: All monetary inputs are in US dollars ($). Interest rate is annual, and term is in months. Ensure all fields are positive numbers where applicable.
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Frequently Asked Questions
A hard money loan is a short-term, asset-based loan typically used by real estate investors. It is secured by the property itself and funded by private lenders, often with higher interest rates and fees than traditional loans.
Points are upfront fees charged by the lender, calculated as a percentage of the loan amount. One point equals 1% of the loan. They are part of the total cost of borrowing.
The monthly payment is calculated using the standard amortization formula: M = P * r * (1+r)^n / ((1+r)^n - 1), where P is the loan amount, r is the monthly interest rate (annual rate / 12), and n is the number of monthly payments.
