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.
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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.
It estimates the cost of a short-term hard-money loan: interest-only payments, points, and the total due at payoff. These loans fund on the property rather than on your income.
Hard Money Loan Calculator in Florida
Florida's flip and short-term rental markets run on hard money, particularly around Tampa, Orlando, and the South Florida coast. Insurance binders and permit timelines are the usual causes of a blown exit date, so build margin into the term. Lenders here commonly want a clear renovation scope and a realistic after-repair value before they fund.
How the Hard Money Loan Calculator Works
The calculator applies the rate to the loan amount for an interest-only monthly payment. It adds points and fees to the up-front cost, then totals the full cost across the term.
The Hard Money Loan Formula, Explained
Monthly interest = loan amount × (annual rate / 12)
Hard-money lenders quote points and interest, not APR alone. A point is one percent of the loan, charged at closing, so two points on a $300,000 loan is $6,000 before any interest is paid.
Most are interest-only with a balloon at the end of the term. The exit matters as much as the rate, because you repay by selling or refinancing, and that plan should exist before you borrow.
The Complete Hard Money Loan Calculator Guide
Hard money is expensive on purpose. It buys speed and it buys a lender who cares about the property rather than your tax returns. For a flip or a short window between two deals, that trade is often worth it.
Cost is easy to underestimate because it arrives in two parts. Points are paid at closing and interest accrues monthly, so a six-month loan at two points costs far more than the rate alone suggests. The calculator totals both.
The term is the risk. A Florida permit delay or a slow insurance binder can push a sale past the balloon date, and an extension costs more points. Model a term longer than you expect to need, then treat the shorter one as the upside.
Hard Money Loan Calculator FAQ
How fast can a hard-money loan close?
Often one to three weeks, because the lender is underwriting the property rather than your income. The limit is usually title and insurance rather than the loan file.
What happens if I cannot repay at the end of the term?
You either refinance into longer-term financing or sell. Many lenders will extend for additional points, so agree the extension terms before you sign rather than after.