Hard Money Loan Calculator
This hard money calculator models interest-only payments plus points on a short-term Florida loan. It shows the true cost of the money, not just the rate.
By Onias Derilus, Mortgage Capital · NMLS# 1859012 · Last Updated: June 2026
Hard money is typically interest-only with principal due at payoff. Points are charged up front, so a short hold makes them expensive in annualized terms. Estimate only.
Hard money is priced as rate plus points, and on a short hold the points dominate. Two points on a nine-month loan costs far more in annualized terms than two points on a thirty-year mortgage.
Payments are almost always interest-only, with the full principal due at payoff. The exit — sale or refinance — is part of the underwriting, not an afterthought.
These figures are estimates. For neutral, official guidance on mortgage costs and what lenders can charge, see the CFPB's Owning a Home guide.
How to Use This Calculator
- 1
Enter the loan amount the lender will fund, which is usually a percentage of purchase price or after-repair value rather than the full amount.
- 2
Enter the rate and the origination points.
- 3
Enter the expected term in months — be honest about the schedule, not optimistic.
- 4
Add other fees, then read total cost and the effective annualized cost side by side.
The Formula & Assumptions
Monthly interest =
loan × rate ÷ 12
Points cost = loan × points%
Total = interest × months
+ points + fees
Effective annual =
total ÷ loan × (12 ÷ months)
The effective annualized figure spreads every cost across the actual term. It is the honest way to compare a hard money loan against a conventional one, and it is usually far above the quoted rate on a short hold.
Florida hard money lenders commonly size loans against after-repair value on a renovation, or against purchase price on a fast acquisition. The percentage they will lend drives how much cash you need, so confirm it before you write an offer.
Every month the project runs long adds a full interest payment. Building a realistic timeline into the term field, rather than the best case, is the difference between a profitable flip and a marginal one.
Frequently Asked Questions
What rate should I expect on Florida hard money?
Rates commonly run in the high single digits to low teens, with one to three origination points, depending on experience, leverage and the property. Pricing moves with the strength of the exit, so a clear sale or refinance plan improves terms.
Are hard money loans interest-only?
Almost always. You pay interest monthly and the entire principal at payoff, which keeps the carrying cost low but makes the exit critical. A missed exit means extension fees or a default.
Why does the effective cost exceed the rate?
Points and fees are charged up front regardless of how long you hold. Spread across a short term they add several percentage points to the annualized cost, which is why the effective figure is the one to compare.
Can I refinance hard money into a long-term loan?
Yes, and that is the usual exit for a rental. A DSCR loan is the common landing spot once the property is stabilized and leased, since it qualifies on the property rather than your income.
Ready to Turn Your Estimate Into a Real Pre-Approval?
Get a personalized rate quote and pre-approval from a licensed Florida mortgage broker — no obligation.
Rates are illustrative only. APR and payments vary by credit score, loan amount, and market conditions. Subject to credit approval. Not a commitment to lend. NMLS# 1859012. Equal Housing Lender.