Hard Money Loan Calculator
Monthly payment, points cost and balloon payoff on short-term bridge financing.
Your numbers
Monthly payment
$2,395.83
Interest-only · $250,000 balloon at month 12
- Points cost, due at funding$5,000.00
- Total interest over term$28,750.00
- Balloon payoff at maturity$250,000.00
- All-in cost of capital$33,750.00
- Loan amount
- $250,000
- Term
- 12 months
- All-in cost
- $33,750
- Cost of capital
- 13.5%
Balloon at maturity. The full $250,000 principal is due in month 12. Interest-only keeps the monthly payment low, but the exit — sale or refinance — has to be in place by then.
Hard money terms vary widely by lender, asset type and exit strategy. Treat this as deal screening, not a term sheet.
Frequently asked questions
How does a hard money loan work?+
A hard money loan is short-term financing secured by the property rather than the borrower's income. Terms usually run 6 to 24 months at a higher rate than a conventional mortgage, with origination points charged up front and the principal repaid in a single balloon at maturity.
What are origination points?+
Points are an up-front fee charged as a percentage of the loan amount - two points on a $250,000 loan is $5,000, due at funding. They are a real cost of capital and belong in any deal analysis alongside the interest.
Interest-only or amortizing?+
Most hard money loans are interest-only with a balloon, which keeps the monthly payment low while the project is underway and repays the principal from the sale or refinance. A fully amortizing structure pays the balance down over the term, so the monthly payment is far higher but nothing is owed at maturity.
What is the all-in cost of capital?+
Points plus total interest over the term - what the money actually costs, separate from repaying the principal. It is the figure to compare against the projected profit on a flip or the cost of an alternative lender.
What short-term capital costs
- Origination points
- Charged up front as a percentage of the loan. Paid at funding, before the project earns anything.
- Interest
- Higher than conventional debt because the loan is short, asset-backed and funded quickly. Usually paid monthly.
- Balloon payoff
- On an interest-only loan the whole principal falls due at maturity, repaid from the sale or a refinance.
- Collateral diligence
- Lien position, payoffs and title condition decide whether the loan is safe to fund — and how fast it can close.