Hard Money Loan Calculator
Enter your purchase price, rehab budget, and after-repair value to see your loan amount, cash to close, monthly payment, and estimated profit — using confirmed 2026 hard money lending ranges.
Deal Basics
Loan Terms
At Sale (Optional — for profit estimate)
Full Cost Breakdown
Estimated Profit at Sale
This calculator provides estimates for educational purposes only and is not a loan offer or investment advice. Actual rates, points, LTV/LTC/ARV limits, and fees vary by lender, borrower experience, property type, and location. Always get a written term sheet from a licensed lender before committing to a deal.
Quick Answer: What Is a Hard Money Loan?
A hard money loan is a short-term, asset-based loan secured by real estate rather than the borrower’s credit or income. In 2026, typical terms are 9-12% interest for experienced borrowers on residential fix-and-flip deals (up to 15% for higher-risk projects), 1.5-3 origination points, 65-75% loan-to-value (or 70-75% of after-repair value), and 6-24 month terms with interest-only payments and a balloon payment at maturity. Private lenders and individual investors — not banks — fund these loans, which is why approval focuses on the deal, not your W-2 income.
How to Use This Hard Money Loan Calculator
- Enter your deal basics — purchase price, rehab budget, and your realistic after-repair value (ARV), based on actual comparable sales, not wishful thinking.
- Set your loan terms — the calculator defaults to typical 2026 ranges (85% LTC, 70% ARV cap, 11% rate, 2 points, 9-month term), but adjust these to match your actual lender’s term sheet once you have one.
- Add selling assumptions to see your full projected profit, not just the loan cost.
- Click Calculate My Deal to see your loan amount, cash needed, monthly payment, full cost breakdown, and estimated profit — including your breakeven sale price.
How Hard Money Loan Sizing Actually Works — LTC vs. ARV
Most calculators online just take a loan amount and compute a payment. That’s not how hard money actually gets sized. Lenders check two different caps and use whichever number is lower:
- Loan-to-Cost (LTC): A percentage of your total project cost (purchase price + rehab budget). If your LTC is 85% and your total project cost is $240,000, the LTC-based cap is $204,000.
- Loan-to-ARV: A percentage of the property’s projected value after renovation. If your ARV is $290,000 and the lender caps loans at 70% of ARV, the ARV-based cap is $203,000.
Your actual loan amount is the smaller of these two figures — this protects the lender even if your renovation budget turns out to be optimistic. This calculator applies both caps automatically and tells you which one is binding, which is something most competitor calculators skip entirely.
2026 Hard Money Loan Rates & Terms at a Glance
| Loan Type | Interest Rate | LTV / LTC Cap | Points | Typical Term |
|---|---|---|---|---|
| Residential fix & flip | 9% – 12% | 65-75% LTV or 70-75% ARV | 1.5 – 3 | 6 – 12 months |
| Bridge loan | 10% – 14% | 65-75% LTV | 1.5 – 3 | 12 – 36 months |
| Fix-to-rent (DSCR transition) | 9% – 12% | Up to 80% LTV | 1.5 – 3 | 12 – 24 months |
| Commercial hard money | 10% – 14% | 60-70% LTV | 2 – 4 | 12 – 36 months |
| Ground-up construction | 11% – 15% | 50-65% LTC | 2 – 5 | 12 – 24 months |
Rates depend heavily on your track record. Lenders reserve the lowest end of these ranges for borrowers with three or more successful completed deals. First-time flippers should expect to land near the higher end of each range, and some lenders require a larger down payment or a licensed general contractor on higher-risk projects.
Worked Example: A Complete Fix-and-Flip Deal
Run your own numbers in the calculator above using these exact default values — the results will match this example precisely.
Hard Money vs. Bridge vs. DSCR vs. Conventional — Which Fits Your Deal?
| Hard Money | Bridge Loan | DSCR Loan | Conventional | |
|---|---|---|---|---|
| Approval basis | Property value + deal | Property value + exit plan | Property’s rental income | Borrower’s credit + income |
| Speed to close | 3 – 10 days | 7 – 14 days | 2 – 4 weeks | 30 – 45 days |
| Typical rate (2026) | 9% – 15% | 10% – 14% | 7% – 9% | 6% – 7% |
| Best for | Fix-and-flip, distressed property | Buying before your current property sells | Long-term rental holds | Owner-occupied primary residence |
Common Mistakes First-Time Hard Money Borrowers Make
- Overestimating ARV. Use closed comparable sales from the last 90 days within a half-mile — not listing prices, and not comps from a different neighborhood tier.
- Underestimating the rehab budget. Add a 10-15% contingency on top of your contractor’s quote for unexpected issues found once walls are opened up.
- Ignoring holding costs. Property taxes, insurance, utilities, and a vacant property policy add up over a 6-12 month hold and are easy to forget when running quick math.
- Not having an exit strategy before closing. Know whether you’re selling or refinancing to a DSCR loan before you draw the first dollar — hard money is not designed to be held indefinitely.
- Comparing only interest rates. A lower rate with more points, a lower LTC, or slower draw schedules can cost more overall than a slightly higher rate with better terms elsewhere.
Rules and Regulations for Hard Money Loans (2026)
Hard money lending sits in a different regulatory category than consumer mortgages, and this trips up a lot of first-time investors:
- Business-purpose loan exemption: Loans made to an LLC, or to an individual for a non-owner-occupied investment property, are generally classified as “business-purpose” loans. This exempts them from federal consumer protections like TRID (TILA-RESPA Integrated Disclosure) and the CFPB’s Ability-to-Repay/Qualified Mortgage rule, which only apply to consumer-purpose loans on owner-occupied homes.
- Owner-occupied hard money is different: If you use a hard money loan to buy or refinance your own primary residence, full federal consumer mortgage protections typically apply, which is why many hard money lenders explicitly refuse to fund owner-occupied deals.
- State licensing varies significantly: Many states require private lenders to hold a specific lending or real estate broker license (for example, California requires a Department of Real Estate broker license for many private money lenders). Licensing requirements, and what they cover, differ state by state.
- State usury laws: Most states cap the maximum interest rate that can be charged, but a majority of states exempt business-purpose loans from these usury caps entirely — check your specific state’s rules, since a handful still apply caps even to business loans.
This isn’t legal advice — if you’re structuring a deal as an individual borrower rather than through an LLC, or considering an owner-occupied purchase, confirm the applicable rules with a real estate attorney in your state before signing.
Frequently Asked Questions
What is a typical interest rate on a hard money loan in 2026?
Most residential fix-and-flip hard money loans in 2026 run 9% to 12% for experienced borrowers, with rates up to 15% for construction loans, commercial deals, or higher-risk projects. Your specific rate depends on your loan-to-value ratio, property condition, and track record.
Is a hard money loan a good idea?
It depends on your exit strategy. Hard money makes sense when speed matters more than cost — for example, competing with cash buyers on a distressed property, or funding a renovation timeline that a bank can’t match. If your project timeline slips significantly, the higher rate can erode your profit quickly, so a realistic timeline and contingency budget matter more with hard money than with any other loan type.
Do you make monthly payments on hard money loans?
Most hard money loans are structured as interest-only, meaning your monthly payment covers only the interest accrued — none of the principal. The full loan balance comes due as a single balloon payment when the loan term ends, typically through a sale or refinance.
How much do you need to put down on a hard money loan?
Since most lenders cap loans at 65-75% loan-to-value (or loan-to-cost), you’ll typically need 25-35% of the total project cost in cash, plus enough to cover origination points and closing costs. Experienced borrowers with strong track records sometimes access LTC up to 85-90%, reducing the required cash.
What happens if I can’t sell or refinance before the loan term ends?
Contact your lender before the maturity date — most offer extensions of 3-6 months, typically costing an additional 1-2 points plus continued interest. Missing the deadline without arranging an extension risks default and potential foreclosure, since the loan is secured directly by the property.
Rate ranges, LTV/LTC/ARV structures, and points referenced from multiple 2026 hard money lender publications, including Gelt Financial, Crestmont Capital, and Gauntlet Funding rate guides, cross-checked for consistency. This is not financial or legal advice — always confirm current terms directly with a licensed lender.
More Free USA Financial Calculators
- USA Financial Calculators Hub — every USA finance tool in one place
- DTI Calculator — check your debt-to-income ratio before applying for any loan
- Mortgage Calculator — for conventional, owner-occupied financing
- ROI Calculator — compare this deal’s return against other investments
- Credit Card Payoff Calculator — clear high-interest debt before taking on investment leverage
- IRA Calculator — plan long-term retirement savings alongside active real estate investing
- Hard Money Explanation