Hard Money Loan Calculator
Enter any lender's rate, points and fees to see the monthly payment, what you owe at payoff, the total cost and the true APR. Compare two offers side by side to see which is cheaper for how long you'll keep the loan.
Offer A
Offer B
| Pay off after | Offer A | Offer B |
|---|
Estimates for comparison only. Total cost = points + fees + interest paid until payoff; the loan amount itself is repaid at payoff. APR includes points, fees and any guaranteed payments over the months you keep the loan. Escrow, title and appraisal costs aren't included. City Capital Realty terms shown as Offer A: 9% interest-only, 2 points, 4 guaranteed monthly payments, loans of $500,000 to $5,000,000. Rates and fees are subject to change without notice. Some restrictions may apply. Subject to credit approval.
How hard money loan costs add up
A hard money loan has three costs: points and fees paid at closing, interest paid each month, and, with some lenders, a set number of guaranteed payments if you repay early. City Capital Realty loans have 4 guaranteed monthly payments. The loan amount itself is repaid when you sell or refinance, so it isn't a cost. These are the formulas the calculator uses:
- Pointsloan × points ÷ 100
- Monthly payment, interest-onlyloan × rate ÷ 12
- Due at payoff, interest-onlythe full loan amount
- Total costpoints + fees + interest paid until payoff
- APRthe yearly rate where what you receive equals what you repay
Points or rate: which offer is cheaper?
Say you're comparing two offers on a $700,000 loan. Offer A is 9% with 2 points and 4 guaranteed monthly payments. Offer B is 11.5% with 1 point and a $1,500 fee. B costs less at closing ($8,500 vs. $14,000), but $875 more every month. So the answer depends on how long you keep the loan:
| Pay off after | Offer A: 9%, 2 points, 4 guaranteed payments | Offer B: 11.5%, 1 point + $1,500 |
|---|---|---|
| 3 months | $35,000 | $28,625 |
| 4 months | $35,000 | $35,333 |
| 6 months | $45,500 | $48,750 |
| 12 months | $77,000 | $89,000 |
Offer B is cheaper only if you repay within 3 months. From month 4, Offer A costs less, and the gap grows every month. Over 12 months, Offer A costs $77,000 in total and Offer B $89,000: a difference of $12,000. Put your own numbers into the calculator above to find the switch-over month for your offers.
Why APR looks high on a short loan
Points are paid once, at the start, so the shorter you keep the loan, the bigger their share of the cost. A 9% loan with 2 points has an APR of about 13.2% if you repay it after 6 months, and about 11.1% after 12 months. When you compare lenders, compare APR or total cost for the same payoff month, not the interest rate alone.
Questions about hard money loan costs
How do I calculate a hard money loan payment?
Most hard money loans are interest-only: multiply the loan amount by the yearly rate and divide by 12. A $700,000 loan at 9% costs $5,250 a month. You repay the full loan amount when you sell or refinance.
What are points, and when do I pay them?
Points are an upfront fee, each point is 1% of the loan. They're usually paid at closing, often out of the loan proceeds. Two points on $700,000 is $14,000.
Is the offer with the lower rate always cheaper?
No. A lower rate with more points costs more if you pay the loan off quickly, and less if you keep it longer. The calculator shows the month where the cheaper offer changes.
What is APR on a hard money loan?
APR is the true yearly cost once points and fees are included, spread over the months you actually keep the loan. Because points are paid upfront, the APR of a short loan is well above its interest rate.
Interest-only or amortized: which is better?
Interest-only keeps payments low, which suits fix-and-flip and bridge loans you'll pay off within months. Amortized payments also reduce the balance, but cost more each month and rarely matter on a loan you keep for less than a year.
Is there a prepayment penalty with City Capital Realty?
Yes: every loan has 4 guaranteed monthly payments. If you repay before making 4 payments, the rest of those 4 payments are still due. After that, you only pay for the months you keep the loan. Enter the number of guaranteed payments in the calculator to see its effect.
Want numbers for a specific Los Angeles property, including local prices, the LA mansion tax and how fast you can close? Try LA Deal Check on our homepage, apply for a loan or call (310) 714-5616.
Local guides: Beverly Hills, Santa Monica, Sherman Oaks, Burbank, Glendale, Pasadena, Torrance, Orange County. Loan types: bridge loans, construction loans.