{"id":955,"date":"2026-08-20T00:56:17","date_gmt":"2026-08-20T04:56:17","guid":{"rendered":"https:\/\/arvcalc.com\/blog\/hard-money-calculator-how-to-use\/"},"modified":"2026-08-20T01:04:02","modified_gmt":"2026-08-20T05:04:02","slug":"hard-money-calculator-how-to-use","status":"publish","type":"post","link":"https:\/\/arvcalc.com\/blog\/hard-money-calculator-how-to-use\/","title":{"rendered":"Hard Money Loan Calculator: How to Calculate Hard Money Costs (2026)"},"content":{"rendered":"<p>The <a href=\"\/hard-money-loan-calculator\">hard money loan calculator<\/a> shows you the true cost of short-term financing \u2014 not just the interest rate, but origination points, monthly payments, and total cost over your hold period. A 12% hard money loan with 3 points on a $200K loan costs $18,000 over 6 months \u2014 that is an effective 18% annual rate. Plug in any deal and see the real numbers before you commit.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_83 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<p><span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav>\n<ul class='ez-toc-list ez-toc-list-level-1 ' >\n<li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/arvcalc.com\/blog\/hard-money-calculator-how-to-use\/#What_Is_a_Hard_Money_Loan\" >What Is a Hard Money Loan<\/a><\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/arvcalc.com\/blog\/hard-money-calculator-how-to-use\/#How_to_Use_the_Hard_Money_Calculator\" >How to Use the Hard Money Calculator<\/a>\n<ul class='ez-toc-list-level-3' >\n<li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/arvcalc.com\/blog\/hard-money-calculator-how-to-use\/#Step_1_%E2%80%94_Loan_Details\" >Step 1 \u2014 Loan Details<\/a><\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/arvcalc.com\/blog\/hard-money-calculator-how-to-use\/#Step_2_%E2%80%94_Hold_Period\" >Step 2 \u2014 Hold Period<\/a><\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/arvcalc.com\/blog\/hard-money-calculator-how-to-use\/#Step_3_%E2%80%94_Additional_Costs\" >Step 3 \u2014 Additional Costs<\/a><\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/arvcalc.com\/blog\/hard-money-calculator-how-to-use\/#Step_4_%E2%80%94_Read_Results\" >Step 4 \u2014 Read Results<\/a><\/li>\n<\/ul>\n<\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/arvcalc.com\/blog\/hard-money-calculator-how-to-use\/#Worked_Example_1_Fix_and_Flip_%E2%80%94_250000_Purchase\" >Worked Example 1: Fix and Flip \u2014 $250,000 Purchase<\/a><\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/arvcalc.com\/blog\/hard-money-calculator-how-to-use\/#Worked_Example_2_BRRRR_Acquisition_%E2%80%94_110000_Purchase\" >Worked Example 2: BRRRR Acquisition \u2014 $110,000 Purchase<\/a><\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/arvcalc.com\/blog\/hard-money-calculator-how-to-use\/#Hard_Money_Cost_by_Hold_Period\" >Hard Money Cost by Hold Period<\/a><\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/arvcalc.com\/blog\/hard-money-calculator-how-to-use\/#How_to_Choose_a_Hard_Money_Lender\" >How to Choose a Hard Money Lender<\/a><\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/arvcalc.com\/blog\/hard-money-calculator-how-to-use\/#5_Hard_Money_Mistakes\" >5 Hard Money Mistakes<\/a>\n<ul class='ez-toc-list-level-3' >\n<li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/arvcalc.com\/blog\/hard-money-calculator-how-to-use\/#1_Not_Budgeting_Points_as_Day-One_Cash\" >1. Not Budgeting Points as Day-One Cash<\/a><\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/arvcalc.com\/blog\/hard-money-calculator-how-to-use\/#2_Underestimating_Rehab_Timeline\" >2. Underestimating Rehab Timeline<\/a><\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/arvcalc.com\/blog\/hard-money-calculator-how-to-use\/#3_Ignoring_Extension_Fees\" >3. Ignoring Extension Fees<\/a><\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/arvcalc.com\/blog\/hard-money-calculator-how-to-use\/#4_Using_Hard_Money_for_Buy-and-Hold\" >4. Using Hard Money for Buy-and-Hold<\/a><\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/arvcalc.com\/blog\/hard-money-calculator-how-to-use\/#5_Not_Comparing_Total_Cost_to_Flip_Profit\" >5. Not Comparing Total Cost to Flip Profit<\/a><\/li>\n<\/ul>\n<\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/arvcalc.com\/blog\/hard-money-calculator-how-to-use\/#Frequently_Asked_Questions\" >Frequently Asked Questions<\/a>\n<ul class='ez-toc-list-level-3' >\n<li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/arvcalc.com\/blog\/hard-money-calculator-how-to-use\/#How_much_does_a_hard_money_loan_cost\" >How much does a hard money loan cost?<\/a><\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/arvcalc.com\/blog\/hard-money-calculator-how-to-use\/#What_are_hard_money_loan_points\" >What are hard money loan points?<\/a><\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/arvcalc.com\/blog\/hard-money-calculator-how-to-use\/#What_LTV_do_hard_money_lenders_offer\" >What LTV do hard money lenders offer?<\/a><\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/arvcalc.com\/blog\/hard-money-calculator-how-to-use\/#How_fast_can_I_close_with_hard_money\" >How fast can I close with hard money?<\/a><\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/arvcalc.com\/blog\/hard-money-calculator-how-to-use\/#Is_hard_money_good_for_BRRRR\" >Is hard money good for BRRRR?<\/a><\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/arvcalc.com\/blog\/hard-money-calculator-how-to-use\/#What_credit_score_do_I_need_for_hard_money\" >What credit score do I need for hard money?<\/a><\/li>\n<\/ul>\n<\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/arvcalc.com\/blog\/hard-money-calculator-how-to-use\/#Related_Calculators_and_Guides\" >Related Calculators and Guides<\/a><\/li>\n<\/ul>\n<\/nav>\n<\/div>\n<h2><span class=\"ez-toc-section\" id=\"What_Is_a_Hard_Money_Loan\"><\/span><span class=\"ez-toc-section\" id=\"What_Is_a_Hard_Money_Loan\"><\/span>What Is a Hard Money Loan<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Hard money is short-term, asset-based financing used by flippers and BRRRR investors. Per the <a href=\"https:\/\/www.consumerfinance.gov\/\" target=\"_blank\" rel=\"noopener noreferrer\">CFPB<\/a>, hard money loans are regulated as mortgage products. The lender cares about the property&#8217;s value (LTV) \u2014 not your income, credit score, or tax returns. Loans fund in 5\u201310 days vs 30\u201345 for <a href=\"https:\/\/www.fanniemae.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Fannie Mae<\/a> conventional.<\/p>\n<figure class=\"wp-block-table\">\n<table>\n<thead>\n<tr>\n<th>Feature<\/th>\n<th>Hard Money<\/th>\n<th>Conventional<\/th>\n<th>DSCR<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td><strong>Rate<\/strong><\/td>\n<td>10\u201314%<\/td>\n<td>7.0\u20137.5%<\/td>\n<td>7.5\u20138.5%<\/td>\n<\/tr>\n<tr>\n<td><strong>Points<\/strong><\/td>\n<td>2\u20134 pts upfront<\/td>\n<td>0\u20131 pt<\/td>\n<td>0\u20132 pts<\/td>\n<\/tr>\n<tr>\n<td><strong>Term<\/strong><\/td>\n<td>6\u201318 months<\/td>\n<td>30 years<\/td>\n<td>30 years<\/td>\n<\/tr>\n<tr>\n<td><strong>Speed<\/strong><\/td>\n<td>5\u201310 days<\/td>\n<td>30\u201345 days<\/td>\n<td>21\u201330 days<\/td>\n<\/tr>\n<tr>\n<td><strong>LTV<\/strong><\/td>\n<td>65\u201380% of ARV<\/td>\n<td>75\u201380% of price<\/td>\n<td>75\u201380% of price<\/td>\n<\/tr>\n<tr>\n<td><strong>Best For<\/strong><\/td>\n<td>Flips, BRRRR acquisition<\/td>\n<td>Buy-and-hold<\/td>\n<td>Scaling portfolio<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n<p>Hard money is a bridge \u2014 you use it to acquire and rehab, then refinance into permanent financing (conventional or <a href=\"\/dscr-calculator\">DSCR<\/a>) or sell. The <a href=\"\/hard-money-loan-calculator\">hard money calculator<\/a> helps you model the carrying cost during that bridge period.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_to_Use_the_Hard_Money_Calculator\"><\/span><span class=\"ez-toc-section\" id=\"How_to_Use_the_Hard_Money_Calculator\"><\/span>How to Use the Hard Money Calculator<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Step_1_%E2%80%94_Loan_Details\"><\/span><span class=\"ez-toc-section\" id=\"Step_1_%E2%80%94_Loan_Details\"><\/span>Step 1 \u2014 Loan Details<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Enter loan amount (typically 70\u201380% of purchase price or 65\u201375% of ARV), interest rate (10\u201314%), and origination points (2\u20134%). The calculator computes your upfront point cost and monthly interest-only payment.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Step_2_%E2%80%94_Hold_Period\"><\/span><span class=\"ez-toc-section\" id=\"Step_2_%E2%80%94_Hold_Period\"><\/span>Step 2 \u2014 Hold Period<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>How many months until you sell (flip) or refinance (BRRRR). Typical: 4\u20136 months for flips, 3\u20136 months for BRRRR. Every extra month adds one more interest payment \u2014 this is where flips go wrong when rehab runs over schedule.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Step_3_%E2%80%94_Additional_Costs\"><\/span><span class=\"ez-toc-section\" id=\"Step_3_%E2%80%94_Additional_Costs\"><\/span>Step 3 \u2014 Additional Costs<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Property tax during hold, insurance (builder&#8217;s risk policy), utilities. These are carrying costs on top of the loan. The <a href=\"\/hard-money-loan-calculator\">hard money calculator<\/a> totals everything so you see the full cost of the bridge period.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Step_4_%E2%80%94_Read_Results\"><\/span><span class=\"ez-toc-section\" id=\"Step_4_%E2%80%94_Read_Results\"><\/span>Step 4 \u2014 Read Results<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Total cost = origination points + total interest + carrying costs. The calculator shows effective annual rate (accounting for points), monthly payment, and cost per month. Compare to your expected profit \u2014 if hard money costs exceed 50% of flip profit, the deal is too thin.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Worked_Example_1_Fix_and_Flip_%E2%80%94_250000_Purchase\"><\/span><span class=\"ez-toc-section\" id=\"Worked_Example_1_Fix_and_Flip_%E2%80%94_250000_Purchase\"><\/span>Worked Example 1: Fix and Flip \u2014 $250,000 Purchase<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>Property:<\/strong> SFR in Memphis, needs $50K rehab<br \/>\n<strong>Purchase:<\/strong> $250,000 \u00b7 <strong>ARV:<\/strong> $350,000<br \/>\n<strong>Hard money:<\/strong> 80% LTV = $200,000 loan \u00b7 12% rate \u00b7 3 points<br \/>\n<strong>Hold:<\/strong> 6 months (3 months rehab + 3 months sell)<\/p>\n<figure class=\"wp-block-table\">\n<table>\n<thead>\n<tr>\n<th>Cost Component<\/th>\n<th>Amount<\/th>\n<th>Calculation<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Origination points (3%)<\/td>\n<td>$6,000<\/td>\n<td>$200,000 \u00d7 3%<\/td>\n<\/tr>\n<tr>\n<td>Monthly interest<\/td>\n<td>$2,000<\/td>\n<td>$200,000 \u00d7 12% \u00f7 12<\/td>\n<\/tr>\n<tr>\n<td>6-month interest total<\/td>\n<td>$12,000<\/td>\n<td>$2,000 \u00d7 6<\/td>\n<\/tr>\n<tr>\n<td>Property tax (6 months)<\/td>\n<td>$1,500<\/td>\n<td>$250K \u00d7 1.2% \u00f7 2<\/td>\n<\/tr>\n<tr>\n<td>Insurance (6 months)<\/td>\n<td>$900<\/td>\n<td>Builder&#8217;s risk $150\/mo<\/td>\n<\/tr>\n<tr>\n<td>Utilities (6 months)<\/td>\n<td>$450<\/td>\n<td>$75\/mo<\/td>\n<\/tr>\n<tr>\n<td><strong>Total carrying cost<\/strong><\/td>\n<td><strong>$20,850<\/strong><\/td>\n<td><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n<p><strong>Total cost: $20,850.<\/strong> If your flip profit (ARV \u2212 purchase \u2212 rehab \u2212 selling costs) is $40,000, hard money eats 52% of it. That is tight but workable. If rehab runs 2 months over (8 months total), interest adds $4,000 and total cost becomes $24,850 \u2014 eating 62% of profit.<\/p>\n<p>This is why the <a href=\"\/hard-money-loan-calculator\">hard money calculator<\/a> is essential: it reveals how schedule overruns destroy flip margins. For the full flip analysis, use the <a href=\"\/fix-and-flip-calculator\">fix and flip calculator<\/a>. For rehab budgeting, see the <a href=\"\/rehab-cost-estimator\">rehab cost estimator<\/a>.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"900\" height=\"250\" src=\"https:\/\/arvcalc.com\/blog\/wp-content\/uploads\/2026\/08\/hard-money-hm-flip-cost.jpg\" alt=\"Hard money loan calculator Fix &#038; Flip: $20,850 total cost on $200K loan over 6 months\" class=\"wp-image-958\" srcset=\"https:\/\/arvcalc.com\/blog\/wp-content\/uploads\/2026\/08\/hard-money-hm-flip-cost.jpg 900w, https:\/\/arvcalc.com\/blog\/wp-content\/uploads\/2026\/08\/hard-money-hm-flip-cost-300x83.jpg 300w, https:\/\/arvcalc.com\/blog\/wp-content\/uploads\/2026\/08\/hard-money-hm-flip-cost-768x213.jpg 768w\" sizes=\"auto, (max-width: 900px) 100vw, 900px\" \/><figcaption>Fix &#038; Flip: $20,850 total cost on $200K loan over 6 months<\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Worked_Example_2_BRRRR_Acquisition_%E2%80%94_110000_Purchase\"><\/span><span class=\"ez-toc-section\" id=\"Worked_Example_2_BRRRR_Acquisition_%E2%80%94_110000_Purchase\"><\/span>Worked Example 2: BRRRR Acquisition \u2014 $110,000 Purchase<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>Property:<\/strong> SFR in Greensboro, NC, needs $30K rehab<br \/>\n<strong>Purchase:<\/strong> $110,000 \u00b7 <strong>ARV:<\/strong> $190,000<br \/>\n<strong>Hard money:<\/strong> 80% LTV = $88,000 loan \u00b7 11% rate \u00b7 2 points<br \/>\n<strong>Hold:<\/strong> 4 months (3 months rehab + 1 month lease-up before refi)<\/p>\n<figure class=\"wp-block-table\">\n<table>\n<thead>\n<tr>\n<th>Cost Component<\/th>\n<th>Amount<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Origination points (2%)<\/td>\n<td>$1,760<\/td>\n<\/tr>\n<tr>\n<td>Monthly interest ($807 \u00d7 4)<\/td>\n<td>$3,227<\/td>\n<\/tr>\n<tr>\n<td>Property tax (4 months)<\/td>\n<td>$348<\/td>\n<\/tr>\n<tr>\n<td>Insurance (4 months)<\/td>\n<td>$600<\/td>\n<\/tr>\n<tr>\n<td>Utilities (4 months)<\/td>\n<td>$300<\/td>\n<\/tr>\n<tr>\n<td><strong>Total carrying cost<\/strong><\/td>\n<td><strong>$6,235<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n<p><strong>Total cost: $6,235.<\/strong> This is the &#8220;bridge tax&#8221; of BRRRR \u2014 the cost of using hard money to acquire before refinancing into a permanent loan. On a deal where you recover 95% of capital on refi ($139,650 back on $147,536 invested), $6,235 in hard money costs is baked into the all-in price. If you could pay cash instead, you save $6,235 but tie up $110K that could fund another deal.<\/p>\n<p>Model your BRRRR cycle in the <a href=\"\/brrrr-calculator\">BRRRR calculator<\/a>. For NC-specific BRRRR, see the <a href=\"\/blog\/brrrr-strategy-north-carolina\/\">NC BRRRR guide<\/a>.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"900\" height=\"200\" src=\"https:\/\/arvcalc.com\/blog\/wp-content\/uploads\/2026\/08\/hard-money-hm-brrrr-cost.jpg\" alt=\"Hard money loan calculator BRRRR: $4,987 bridge cost then refinance to 7% permanent\" class=\"wp-image-959\" srcset=\"https:\/\/arvcalc.com\/blog\/wp-content\/uploads\/2026\/08\/hard-money-hm-brrrr-cost.jpg 900w, https:\/\/arvcalc.com\/blog\/wp-content\/uploads\/2026\/08\/hard-money-hm-brrrr-cost-300x67.jpg 300w, https:\/\/arvcalc.com\/blog\/wp-content\/uploads\/2026\/08\/hard-money-hm-brrrr-cost-768x171.jpg 768w\" sizes=\"auto, (max-width: 900px) 100vw, 900px\" \/><figcaption>BRRRR: $4,987 bridge cost then refinance to 7% permanent<\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Hard_Money_Cost_by_Hold_Period\"><\/span><span class=\"ez-toc-section\" id=\"Hard_Money_Cost_by_Hold_Period\"><\/span>Hard Money Cost by Hold Period<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<figure class=\"wp-block-table\">\n<table>\n<thead>\n<tr>\n<th>Hold Period<\/th>\n<th>Interest ($200K at 12%)<\/th>\n<th>+ 3 Points<\/th>\n<th>Total<\/th>\n<th>Effective Annual<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td><strong>3 months<\/strong><\/td>\n<td>$6,000<\/td>\n<td>$6,000<\/td>\n<td>$12,000<\/td>\n<td>24.0%<\/td>\n<\/tr>\n<tr>\n<td><strong>6 months<\/strong><\/td>\n<td>$12,000<\/td>\n<td>$6,000<\/td>\n<td>$18,000<\/td>\n<td>18.0%<\/td>\n<\/tr>\n<tr>\n<td><strong>9 months<\/strong><\/td>\n<td>$18,000<\/td>\n<td>$6,000<\/td>\n<td>$24,000<\/td>\n<td>16.0%<\/td>\n<\/tr>\n<tr>\n<td><strong>12 months<\/strong><\/td>\n<td>$24,000<\/td>\n<td>$6,000<\/td>\n<td>$30,000<\/td>\n<td>15.0%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n<p>Points are fixed regardless of hold \u2014 the shorter your hold, the more expensive points become as an effective rate. At 3 months, points alone add 12% to your annualized cost. This is why fast rehab timelines are critical. Check current rates at <a href=\"https:\/\/fred.stlouisfed.org\/series\/MORTGAGE30US\" target=\"_blank\" rel=\"noopener noreferrer\">FRED mortgage data<\/a>.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_to_Choose_a_Hard_Money_Lender\"><\/span><span class=\"ez-toc-section\" id=\"How_to_Choose_a_Hard_Money_Lender\"><\/span>How to Choose a Hard Money Lender<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<figure class=\"wp-block-table\">\n<table>\n<thead>\n<tr>\n<th>Factor<\/th>\n<th>What to Compare<\/th>\n<th>Red Flags<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td><strong>Rate<\/strong><\/td>\n<td>10\u201314% range<\/td>\n<td>Below 9% (probably bait, hidden fees)<\/td>\n<\/tr>\n<tr>\n<td><strong>Points<\/strong><\/td>\n<td>2\u20134 points<\/td>\n<td>5+ points (too expensive)<\/td>\n<\/tr>\n<tr>\n<td><strong>LTV<\/strong><\/td>\n<td>70\u201380% of purchase or ARV<\/td>\n<td>&#8220;100% financing&#8221; (junk fees hidden)<\/td>\n<\/tr>\n<tr>\n<td><strong>Prepayment penalty<\/strong><\/td>\n<td>None or minimal<\/td>\n<td>6+ month minimum interest guarantee<\/td>\n<\/tr>\n<tr>\n<td><strong>Extension fees<\/strong><\/td>\n<td>$500\u2013$1,000\/month<\/td>\n<td>Automatic rate increase on extension<\/td>\n<\/tr>\n<tr>\n<td><strong>Speed to close<\/strong><\/td>\n<td>5\u201310 business days<\/td>\n<td>30+ days (not real hard money)<\/td>\n<\/tr>\n<tr>\n<td><strong>Draw schedule<\/strong><\/td>\n<td>Rehab draws in 3\u20135 disbursements<\/td>\n<td>All rehab upfront (rare, risky for lender)<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n<p>Get quotes from 3+ lenders. The difference between 11% + 2 points and 13% + 3 points on a $200K loan over 6 months is $5,000. That is real money on a flip with $40K target profit. Per <a href=\"https:\/\/www.nar.realtor\/research-and-statistics\" target=\"_blank\" rel=\"noopener noreferrer\">NAR<\/a>, investor share of purchases is 20\u201325% nationally \u2014 hard money lenders are competing for this business.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"900\" height=\"230\" src=\"https:\/\/arvcalc.com\/blog\/wp-content\/uploads\/2026\/08\/hard-money-hm-hold-period.jpg\" alt=\"Hard money loan calculator 3-month hold: 24% effective rate vs 12-month: 15%\" class=\"wp-image-960\" srcset=\"https:\/\/arvcalc.com\/blog\/wp-content\/uploads\/2026\/08\/hard-money-hm-hold-period.jpg 900w, https:\/\/arvcalc.com\/blog\/wp-content\/uploads\/2026\/08\/hard-money-hm-hold-period-300x77.jpg 300w, https:\/\/arvcalc.com\/blog\/wp-content\/uploads\/2026\/08\/hard-money-hm-hold-period-768x196.jpg 768w\" sizes=\"auto, (max-width: 900px) 100vw, 900px\" \/><figcaption>3-month hold: 24% effective rate vs 12-month: 15%<\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"5_Hard_Money_Mistakes\"><\/span><span class=\"ez-toc-section\" id=\"5_Hard_Money_Mistakes\"><\/span>5 Hard Money Mistakes<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"1_Not_Budgeting_Points_as_Day-One_Cash\"><\/span><span class=\"ez-toc-section\" id=\"1_Not_Budgeting_Points_as_Day-One_Cash\"><\/span>1. Not Budgeting Points as Day-One Cash<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Why:<\/strong> 3 points on $200K = $6,000 due at closing. If you budgeted $50K down payment + $50K rehab = $100K cash needed, the actual need is $106K. Running out of cash mid-rehab kills deals.<\/p>\n<p><strong>Fix:<\/strong> Include points in your total cash-to-close calculation. The <a href=\"\/hard-money-loan-calculator\">hard money calculator<\/a> shows total upfront cost.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"2_Underestimating_Rehab_Timeline\"><\/span><span class=\"ez-toc-section\" id=\"2_Underestimating_Rehab_Timeline\"><\/span>2. Underestimating Rehab Timeline<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Why:<\/strong> Every month over schedule costs $2,000 in interest on a $200K loan at 12%. A &#8220;6-month flip&#8221; that takes 9 months adds $6,000 to your carrying cost \u2014 often the difference between profit and breakeven.<\/p>\n<p><strong>Fix:<\/strong> Budget 50% timeline contingency. If contractor says 3 months, model 4.5 months. Use the <a href=\"\/rehab-cost-estimator\">rehab cost estimator<\/a> for realistic timelines.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"3_Ignoring_Extension_Fees\"><\/span><span class=\"ez-toc-section\" id=\"3_Ignoring_Extension_Fees\"><\/span>3. Ignoring Extension Fees<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Why:<\/strong> Most hard money loans have 6\u201312 month terms. If you can&#8217;t sell or refi in time, extension fees ($500\u2013$2,000\/month) and rate increases kick in. Some lenders add 2\u20133% rate premium on extensions.<\/p>\n<p><strong>Fix:<\/strong> Read the extension terms before signing. Budget for at least 2 months of extension in your worst-case scenario.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"4_Using_Hard_Money_for_Buy-and-Hold\"><\/span><span class=\"ez-toc-section\" id=\"4_Using_Hard_Money_for_Buy-and-Hold\"><\/span>4. Using Hard Money for Buy-and-Hold<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Why:<\/strong> Hard money at 12% + 3 points = $18,000\/year on $200K. Conventional at 7% = $16,761\/year \u2014 and it is a 30-year fixed, not a 12-month balloon. Hard money for buy-and-hold is burning money.<\/p>\n<p><strong>Fix:<\/strong> Use hard money ONLY as a bridge \u2014 acquire, rehab, then refi into conventional or <a href=\"\/dscr-calculator\">DSCR<\/a>. Compare long-term options in the <a href=\"\/mortgage-calculator-investment\">investment property mortgage calculator<\/a>.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"5_Not_Comparing_Total_Cost_to_Flip_Profit\"><\/span><span class=\"ez-toc-section\" id=\"5_Not_Comparing_Total_Cost_to_Flip_Profit\"><\/span>5. Not Comparing Total Cost to Flip Profit<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Why:<\/strong> If hard money costs $20,850 and flip profit is $25,000, you keep only $4,150 after financing \u2014 a 2% return on $100K+ invested. Not worth the risk.<\/p>\n<p><strong>Fix:<\/strong> Hard money cost should be less than 40% of expected profit. If it exceeds 50%, the deal is too thin. Run the numbers in the <a href=\"\/fix-and-flip-calculator\">fix and flip calculator<\/a> before committing.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions\"><\/span><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions\"><\/span>Frequently Asked Questions<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<div itemscope itemtype=\"https:\/\/schema.org\/FAQPage\">\n<div class=\"schema-faq-section\" itemscope itemtype=\"https:\/\/schema.org\/Question\">\n<h3 class=\"schema-faq-question font-bold text-lg cursor-pointer\" itemprop=\"name\" onclick=\"const a=this.nextElementSibling;a.style.display=a.style.display==='none'?'block':'none'\"><span class=\"ez-toc-section\" id=\"How_much_does_a_hard_money_loan_cost\"><\/span><span class=\"ez-toc-section\" id=\"How_much_does_a_hard_money_loan_cost\"><\/span>How much does a hard money loan cost?<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"schema-faq-answer py-2\" itemprop=\"acceptedAnswer\" itemscope itemtype=\"https:\/\/schema.org\/Answer\" style=\"display:block\">\n<p itemprop=\"text\">Total cost = origination points (2\u20134% upfront) + monthly interest (10\u201314% annually). On a $200K loan at 12% with 3 points over 6 months: $6,000 points + $12,000 interest = $18,000 total. Effective annual rate: 18%. Use the <a href=\"\/hard-money-loan-calculator\">hard money calculator<\/a> to model your specific deal.<\/p>\n<\/div>\n<\/div>\n<div class=\"schema-faq-section\" itemscope itemtype=\"https:\/\/schema.org\/Question\">\n<h3 class=\"schema-faq-question font-bold text-lg cursor-pointer\" itemprop=\"name\" onclick=\"const a=this.nextElementSibling;a.style.display=a.style.display==='none'?'block':'none'\"><span class=\"ez-toc-section\" id=\"What_are_hard_money_loan_points\"><\/span><span class=\"ez-toc-section\" id=\"What_are_hard_money_loan_points\"><\/span>What are hard money loan points?<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"schema-faq-answer py-2\" itemprop=\"acceptedAnswer\" itemscope itemtype=\"https:\/\/schema.org\/Answer\" style=\"display:none\">\n<p itemprop=\"text\">Points are upfront origination fees charged as a percentage of the loan amount. 1 point = 1% of the loan. On a $200K loan, 3 points = $6,000 due at closing. Points are paid regardless of how long you hold the loan \u2014 the shorter your hold, the more expensive points become as an effective annual rate.<\/p>\n<\/div>\n<\/div>\n<div class=\"schema-faq-section\" itemscope itemtype=\"https:\/\/schema.org\/Question\">\n<h3 class=\"schema-faq-question font-bold text-lg cursor-pointer\" itemprop=\"name\" onclick=\"const a=this.nextElementSibling;a.style.display=a.style.display==='none'?'block':'none'\"><span class=\"ez-toc-section\" id=\"What_LTV_do_hard_money_lenders_offer\"><\/span><span class=\"ez-toc-section\" id=\"What_LTV_do_hard_money_lenders_offer\"><\/span>What LTV do hard money lenders offer?<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"schema-faq-answer py-2\" itemprop=\"acceptedAnswer\" itemscope itemtype=\"https:\/\/schema.org\/Answer\" style=\"display:none\">\n<p itemprop=\"text\">Most hard money lenders offer 65\u201380% LTV based on purchase price or 65\u201375% based on ARV (after-repair value). Some lenders also fund rehab costs (drawn in stages as work completes). Example: $250K purchase at 80% LTV = $200K loan. You bring $50K down + rehab costs + points. Check your LTV in the <a href=\"\/ltv-calculator\">LTV calculator<\/a>.<\/p>\n<\/div>\n<\/div>\n<div class=\"schema-faq-section\" itemscope itemtype=\"https:\/\/schema.org\/Question\">\n<h3 class=\"schema-faq-question font-bold text-lg cursor-pointer\" itemprop=\"name\" onclick=\"const a=this.nextElementSibling;a.style.display=a.style.display==='none'?'block':'none'\"><span class=\"ez-toc-section\" id=\"How_fast_can_I_close_with_hard_money\"><\/span><span class=\"ez-toc-section\" id=\"How_fast_can_I_close_with_hard_money\"><\/span>How fast can I close with hard money?<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"schema-faq-answer py-2\" itemprop=\"acceptedAnswer\" itemscope itemtype=\"https:\/\/schema.org\/Answer\" style=\"display:none\">\n<p itemprop=\"text\">5\u201310 business days is typical. Some lenders close in 3 days for repeat borrowers. This speed is the #1 advantage of hard money \u2014 it lets you compete with cash buyers on distressed properties. Conventional takes 30\u201345 days; DSCR takes 21\u201330 days.<\/p>\n<\/div>\n<\/div>\n<div class=\"schema-faq-section\" itemscope itemtype=\"https:\/\/schema.org\/Question\">\n<h3 class=\"schema-faq-question font-bold text-lg cursor-pointer\" itemprop=\"name\" onclick=\"const a=this.nextElementSibling;a.style.display=a.style.display==='none'?'block':'none'\"><span class=\"ez-toc-section\" id=\"Is_hard_money_good_for_BRRRR\"><\/span><span class=\"ez-toc-section\" id=\"Is_hard_money_good_for_BRRRR\"><\/span>Is hard money good for BRRRR?<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"schema-faq-answer py-2\" itemprop=\"acceptedAnswer\" itemscope itemtype=\"https:\/\/schema.org\/Answer\" style=\"display:none\">\n<p itemprop=\"text\">Yes \u2014 hard money is the most common acquisition tool for BRRRR. You use it to buy and rehab (3\u20136 months), then refinance into a conventional or DSCR loan for long-term hold. Total hard money cost is typically $5,000\u2013$10,000 \u2014 baked into your all-in price. Model the full cycle in the <a href=\"\/brrrr-calculator\">BRRRR calculator<\/a>.<\/p>\n<\/div>\n<\/div>\n<div class=\"schema-faq-section\" itemscope itemtype=\"https:\/\/schema.org\/Question\">\n<h3 class=\"schema-faq-question font-bold text-lg cursor-pointer\" itemprop=\"name\" onclick=\"const a=this.nextElementSibling;a.style.display=a.style.display==='none'?'block':'none'\"><span class=\"ez-toc-section\" id=\"What_credit_score_do_I_need_for_hard_money\"><\/span><span class=\"ez-toc-section\" id=\"What_credit_score_do_I_need_for_hard_money\"><\/span>What credit score do I need for hard money?<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"schema-faq-answer py-2\" itemprop=\"acceptedAnswer\" itemscope itemtype=\"https:\/\/schema.org\/Answer\" style=\"display:none\">\n<p itemprop=\"text\">Most hard money lenders require 620+ credit score, but some go as low as 580. The loan is primarily based on the property&#8217;s value (LTV), not your creditworthiness. Higher credit scores may get slightly better rates (0.5\u20131% difference). Hard money is asset-based \u2014 the property is the collateral.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<h2><span class=\"ez-toc-section\" id=\"Related_Calculators_and_Guides\"><\/span><span class=\"ez-toc-section\" id=\"Related_Calculators_and_Guides\"><\/span>Related Calculators and Guides<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><a href=\"\/hard-money-loan-calculator\"><strong>Hard Money Loan Calculator<\/strong><\/a> \u2014 Total cost with points and interest<\/li>\n<li><a href=\"\/fix-and-flip-calculator\"><strong>Fix and Flip Calculator<\/strong><\/a> \u2014 Full flip profit analysis<\/li>\n<li><a href=\"\/brrrr-calculator\"><strong>BRRRR Calculator<\/strong><\/a> \u2014 Buy, rehab, rent, refinance, repeat<\/li>\n<li><a href=\"\/arv-calculator\"><strong>ARV Calculator<\/strong><\/a> \u2014 After-repair value estimation<\/li>\n<li><a href=\"\/rehab-cost-estimator\"><strong>Rehab Cost Estimator<\/strong><\/a> \u2014 Room-by-room rehab budget<\/li>\n<li><a href=\"\/70-percent-rule-calculator\"><strong>70% Rule Calculator<\/strong><\/a> \u2014 Maximum offer for flips<\/li>\n<li><a href=\"\/ltv-calculator\"><strong>LTV Calculator<\/strong><\/a> \u2014 Loan-to-value ratio<\/li>\n<li><a href=\"\/dscr-calculator\"><strong>DSCR Calculator<\/strong><\/a> \u2014 For refinance qualification<\/li>\n<li><a href=\"\/mortgage-calculator-investment\"><strong>Mortgage Calculator<\/strong><\/a> \u2014 Compare permanent financing<\/li>\n<li><a href=\"\/calculators\"><strong>All 30+ Calculators<\/strong><\/a><\/li>\n<\/ul>\n<p>Blog guides:<\/p>\n<ul>\n<li><a href=\"\/blog\/how-to-flip-a-house-beginner-guide\/\">How to Flip a House: Beginner Guide<\/a><\/li>\n<li><a href=\"\/blog\/fix-and-flip-calculator-how-to-use\/\">Fix and Flip Calculator How-to-Use<\/a><\/li>\n<li><a href=\"\/blog\/cost-to-rehab-a-house\/\">Cost to Rehab a House<\/a><\/li>\n<li><a href=\"\/blog\/70-percent-rule-real-estate-flipping-guide\/\">70% Rule Guide<\/a><\/li>\n<li><a href=\"\/blog\/brrrr-strategy-guide\/\">BRRRR Strategy Explained<\/a><\/li>\n<li><a href=\"\/blog\/dscr-calculator-how-to-use\/\">DSCR Calculator How-to-Use<\/a><\/li>\n<li><a href=\"\/blog\/investment-property-interest-rates\/\">Investment Property Interest Rates<\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>The hard money loan calculator shows you the true cost of short-term financing \u2014 not just the interest rate, but origination points, monthly payments, and total cost over your hold&#8230;<\/p>\n","protected":false},"author":1,"featured_media":963,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[18],"tags":[],"class_list":["post-955","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-guides"],"_links":{"self":[{"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/posts\/955","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/comments?post=955"}],"version-history":[{"count":2,"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/posts\/955\/revisions"}],"predecessor-version":[{"id":962,"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/posts\/955\/revisions\/962"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/media\/963"}],"wp:attachment":[{"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/media?parent=955"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/categories?post=955"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/tags?post=955"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}