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Article provided by: Bay Mountain Capital

Hard Money Loan Calculator

Hard money loans are the fastest hacks for any real estate rehab or flip. Their approval leans more towards the property’s value than the buyer’s qualification. A hard money calculator is a complementary tool that allows for the fast analysis of the loan process.

How does hard money calculator work?

Examining the cost of a short-term loan is essential because it reduces the chances of financial losses on both parties. The hard money calculator shows the following values when you input the needed entries and submit them for calculations:

  • Ongoing interest charges
  • Upfront costs
  • Potential loan amount
  • Cost of keeping the loan over the needed duration

What are the inputs to a hard money calculator?

Purchase price

It is the value you purchase the property. Input an estimate if you do not have an exact value

Repair costs

The value includes the price of materials and the paid labor


The Estimated After Repair Value is the total amount you wish to sell the property after renovations and repairs. It is a typical value for fix and flip projects


The calculator should have a slider to select the percentage you wish the lender will fund. Most calculators range between 50 and 10 percent.

Funding type

It is crucial when the calculator allows you to choose the amount you wish the lender base the amount. You can choose between the LTC, LTV, and ARV.

Term of loan

Hard money loans are short term loans that last up to two years. The input field can pick a timeline in months, hence may have a maximum of up to twenty-four months.

Interest rate

The anticipated interest rate will not be the same as that of a traditional mortgage rate. Private money lenders will usually have a price ranging between 7.5 and 18 percent, whereas a conventional bank may have a 4 percent interest rate.

Origination fees

Hard money lenders may have higher upfront fees because they have more significant risks than a traditional lender. Place an estimate on the fields if the loaner requires you to input the value.

What are the outputs of the calculator?

The hard money calculator will give different values, depending on the specifics of its computation. The most common ones include:

Loan amount

The figure is the estimated amount you will receive for the loan. It has a basis on the information you supply on the input fields.

Down payment

The hard money calculator generates an estimate that is a specific ratio to the amount you will receive. It may appear as $0 if the amount of the loan exceeds or equals the purchase value.  

Closing cash

Certain instances will have an approved amount that exceeds the purchase price, especially if the loan has a basis on the ARV. The cash at closing does not include loan fees and points, because they are a subtraction from any excess amount. The lender may, however, still require a deposit when the amount exceeds what one needs to purchase the property.

Talk to us about the information you should gather before we can process your loan. You can also enquire about the importance of every input and output data.


Hard Money Loan Calculator
Bay Mountain Capital
3710 Rawlins St #1390
Dallas TX 75219

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