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Hard Money Loan Calculator

Price a short-term property loan the way it is actually written: interest-only payments now, the whole balance at the end.

Michael Phillips
Written and checked by Michael Phillips Founder, Calculator Dad · Published 23 September 2026
The loan
$
% a year
years
years
The lump sum at the end
—
—
due in one payment · —
Monthly payment—
Interest until then—
Total paid out—

Against paying it off properly

Hard money is short-term property finance priced on the asset rather than the borrower: a high rate, points up front, interest-only payments and a balloon at the end. It exists because banks are slow and cautious, and it is used by people buying, fixing and reselling property.

How the deal is usually shaped

  • Interest-only payments, so the balance does not fall and the whole amount is due at the end.
  • Points charged upfront, which is why the APR is well above the quoted rate. Put them into our APR calculator to see the real number.
  • A term measured in months, typically under two years.
  • Lending against the property's value, sometimes its value after the work is done.

Those conventions come from the market, not from any regulation, so they vary from lender to lender. What is fixed is the arithmetic: a short interest-only loan with points is expensive per month and brutal if the exit is delayed.

The consumer protections usually do not apply

Regulation Z, which brings you the APR disclosure, the ability-to-repay rules and much else, exempts credit extended primarily for a business or commercial purpose. Lending to buy or improve rental property that you do not live in is deemed a business purpose. So a hard money loan on an investment property generally arrives without the disclosures you would get on a mortgage. Read the documents rather than relying on a form to summarise them.

Model the exit, not the payment

Use the calculator above for the monthly cost, then work out the balloon with our balloon calculator, and ask the hard question: if the sale or the refinance takes six months longer than planned, what does an extension cost, and can you carry it?

Quick answers

How much does a hard money loan cost?

Interest-only payments at a high rate, plus points up front, and the whole balance at the end. Put the points in as an origination fee on our APR calculator to see the real annual cost.

Are hard money loans regulated like mortgages?

Usually not. Regulation Z exempts credit made primarily for a business purpose, and lending on non-owner-occupied rental property is deemed business purpose.

What is after-repair value?

The estimated value once the work is done. Some lenders size the loan against it rather than the current value. It is a market convention, not a regulated measure.

What happens if my project runs late?

The balloon still falls due. Ask what an extension costs before you sign, and price the carrying cost of a delay.

Sources

  1. 12 CFR § 1026.3(a), the business-purpose exemption from Regulation Z; official interpretation, when rental property lending counts as business purpose
  2. Interagency supervisory loan-to-value limits, 12 CFR Part 365
  3. CFPB, balloon payments
Balloon payment calculatorThe lump sum at the end of a short loan. APR calculatorWhat points do to the real rate. Business loan calculatorSBA fees and factor rates.