Free calculator
Hard money loan calculator with draws and Dutch interest
A hard money loan costs more than its rate. Points come off the whole loan, the rehab money arrives in draws with a fee each time, and some lenders charge interest on money you have not drawn yet. This calculator sizes the loan month by month and shows what it really costs.
Total cost of the loan
$15,244
Loan amount
$189,000
Cash to close
$26,194
Points
$3,780
Interest on drawn funds
$9,364
Interest if Dutch (full balance)
$10,395
Rehab holdback in draws
$45,000
Simulated month by month: draws funded at the end of each rehab month, interest paid monthly. Total cost = points, lender and draw fees, and interest on drawn funds. Planning terms, not a quote or commitment to lend.
Comps, rehab, refi and a verdict for a real address. Your numbers come with you.
How to use it
Enter price, rehab and ARV
The lender sizes the loan from these. Many cap the loan at a share of ARV.
Enter the terms
Rate, points, loan to purchase (often 85% to 90%), rehab financed (often 100%) and the max loan to ARV (often 70% to 75%).
Set months and draws
How long you hold the loan and how many rehab draws you take. Each draw can carry a fee.
Compare Dutch and non-Dutch
Dutch interest charges the rate on the full loan from day one, including rehab money still held back.
Free here, deeper in the app
This free calculator
- Loan size from loan to purchase, rehab financed and the ARV cap
- Cash to close, including points, fees and buy closing costs
- Interest on drawn funds next to Dutch interest on the full balance
- The total cost of the money for your hold
Run The Deal app
- Your own lenders saved once and used on every deal
- Gap funding and HELOC layers on top of the first loan
- Extension fees when the hold runs past the term
- Draw requests with photos your lender opens with a link
How a hard money loan is sized
Most fix and flip lenders fund part of the purchase and all or part of the rehab, then cap the total at a share of ARV. The calculator takes the smallest of those, the way a lender does.
- Purchase price
- $160,000
- 90% of purchase
- $144,000
- 100% of $45,000 rehab
- $45,000
- Requested loan
- $189,000
- Cap: 75% of $300,000 ARV
- $225,000
The $45,000 rehab is held back and paid in 4 draws. You bring the other $16,000 of the price, plus closing costs, $3,780 in points and $2,100 in lender and draw fees.
Interest on drawn funds vs Dutch interest
With interest on drawn funds, the balance starts at the $144,000 purchase funding and grows as each draw is paid. With Dutch interest, you pay the rate on all $189,000 from day one. Over six months at 11%, that is about $9,364 on drawn funds versus $10,395 Dutch.
Want the whole draw process, from inspection to wire? Read hard money draws explained.
Questions
What is Dutch interest on a hard money loan?
Interest charged on the full loan amount from closing, even on rehab funds the lender has not released yet. Non-Dutch loans charge interest only on money drawn. On the default deal here, Dutch interest costs about $1,000 more over six months.
How are hard money points charged?
A point is 1% of the loan, paid at closing. Two points on a $189,000 loan is $3,780. Points are charged on the whole loan, including the rehab holdback.
How much cash do I need to close a hard money loan?
The part of the price the lender does not fund, plus buy closing costs, points and lender fees. Rehab funds come later in draws. If the ARV cap binds, you also bring the shortfall.
Are these real loan terms?
No. They are common planning terms, not a quote or commitment to lend. Use your own lender's term sheet.
Learn the terms
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