Hard Money Loan Calculator: LTC, ARV, Points and Cash

Hard Money Loan Calculator

Estimate a property-based loan limit from loan-to-cost and loan-to-ARV rules, then calculate cash needed, points, payments, interest and the payoff balance.

Use a supported estimate; the lender’s appraisal may differ.
If this exceeds either limit, the model uses the lower eligible amount and shows the gap.
Loan limits, fees and amortization
Taxes, title, escrow, inspection or other cash costs; exclude points and lender fees entered above.
Used only for the amortized-payment option.

How the hard money loan calculator works

The calculator treats the entered loan-to-cost and loan-to-ARV percentages as two separate caps. The modeled maximum is the lower of those amounts. If you enter a requested loan above that maximum, the calculator reduces the modeled amount and reports the gap. Actual lenders may use different definitions, appraisals, exclusions and minimum equity rules.

Modeled maximum loan: the lower of (purchase price + renovation budget) × maximum LTC and ARV × maximum loan-to-ARV. Interest-only payment: modeled loan × annual rate ÷ 12. Points: modeled loan × entered points percentage.

For an interest-only structure, the monthly payment covers modeled interest and the full principal remains due at payoff. For an amortized structure, the payment is based on the chosen amortization period and the remaining balance after the shorter loan term appears as the balloon.

Worked example

For a US$250,000 purchase, US$50,000 renovation budget and US$400,000 ARV, an 85% LTC cap permits US$255,000 while a 70% ARV cap permits US$280,000. The lower modeled maximum is therefore US$255,000. A requested US$250,000 loan at 12% for 12 months, interest-only, produces a US$2,500 monthly payment, US$30,000 of term interest and a US$250,000 payoff balance. With 2 points, US$1,500 of lender fees and US$7,000 of other closing costs, estimated cash needed at closing is US$63,500.

Loan-limit inputs are assumptions. A lender may base LTC on eligible costs rather than every project expense, use its own ARV appraisal, hold back renovation funds, require interest reserves or finance fees differently. Enter the definitions from the actual term sheet.

What cash needed at closing includes

The estimate starts with the purchase price, renovation budget and entered non-lender acquisition costs. It subtracts the modeled loan, then adds points and other lender fees. The calculation assumes points and fees are paid in cash and that the modeled loan can be applied to the full purchase and renovation budget. It does not schedule renovation draws.

Important limits

This calculator is an educational planning estimate, not a loan offer, underwriting decision, appraisal, disclosure or financial advice. It uses monthly periods and a fixed rate. It does not model daily interest, staged renovation draws, holdbacks, reserves, inspection fees, appraisal fees unless entered, prepayment terms, default interest, extension fees, late charges, taxes, insurance, utilities, sale costs or project profit. Confirm eligible costs, lien position, payoff terms and every fee with the lender and closing professional.

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Frequently asked questions

What is the difference between LTC and loan-to-ARV?

LTC compares the modeled loan with purchase price plus renovation budget. Loan-to-ARV compares it with the entered after-repair value. This calculator applies both and uses the lower permitted amount.

Are hard money loan payments always interest-only?

No. Interest-only is a common planning structure for short terms, but contracts differ. Use the amortized option when the note requires scheduled principal reduction.

Does the calculator estimate profit on a property flip?

No. It isolates the financing and acquisition cash model. A profit estimate also needs holding costs, sale price, selling expenses, taxes and project-specific contingencies.