Calculator Inputs
Example Data Table
| Scenario | Purchase | Rehab | After Repair Value | Rate | Term | Expected Profit |
|---|---|---|---|---|---|---|
| Conservative Flip | $160,000 | $35,000 | $245,000 | 11% | 8 months | $18,000 |
| Moderate Rehab | $180,000 | $45,000 | $285,000 | 12% | 9 months | $27,000 |
| Heavy Renovation | $220,000 | $75,000 | $375,000 | 13% | 12 months | $34,000 |
Formula Used
Rehab With Contingency = Rehab Budget + Rehab Budget × Contingency Percent.
Loan By Cost = Total Project Cost Before Finance × Maximum LTC Percent.
Loan By Value = After Repair Value × Maximum LTV Percent.
Estimated Loan = Lower value among desired loan, cost cap, and value cap.
Interest Cost = Loan Amount × Annual Interest Rate ÷ 12 × Term Months.
Net Profit = Selling Price − Total Investment.
ROI = Net Profit ÷ Total Cash Needed × 100.
How To Use This Calculator
- Enter the purchase price and after repair value.
- Add your rehab budget and contingency allowance.
- Enter lender terms, including rate, points, LTC, and LTV.
- Add holding costs and expected selling costs.
- Press the calculate button.
- Review loan size, cash needed, profit, and ROI.
- Download the result as a CSV or PDF file.
Hard Money Deal Planning Guide
Why This Calculator Matters
Hard money financing can move quickly. That speed helps investors close deals that normal lenders may avoid. Yet speed also brings risk. A short loan term, high interest, and upfront points can change the whole deal. This calculator helps you test those costs before you make an offer.
Estimate The True Project Cost
A good analysis starts with the purchase price. Then it adds rehab, closing costs, and a repair cushion. The cushion is important. Renovations often uncover hidden damage. Older homes may need extra electrical, plumbing, roof, or permit work. A contingency keeps the estimate more realistic.
Understand Loan Limits
Hard money lenders usually review both cost and value. Loan to cost checks the project budget. Loan to value compares the loan with the repaired property value. The smaller limit usually controls the deal. This calculator shows both caps. That helps you see whether more cash is needed at closing.
Review Carrying Costs
Many investors focus only on purchase and rehab. Holding costs can quietly reduce profit. Taxes, insurance, utilities, lawn care, security, and interest continue every month. Longer projects need more cash. Delays can turn a strong spread into a weak return.
Check Exit Profit
The expected selling price should be based on current comparable sales. Selling costs should include agent commissions, transfer fees, concessions, staging, and final cleanup. After these costs, the calculator estimates net profit. It also compares profit with cash invested.
Use Conservative Inputs
Strong investors test several versions of a deal. Run a base case first. Then lower the selling price. Increase the rehab budget. Add two extra months of holding costs. If the deal still works, it may deserve deeper review. If small changes erase the profit, the offer may need adjustment.
Make Better Offers
This tool does not replace lender approval or local market research. It gives a fast structure for deal review. Use it before inspections, contractor bids, and final underwriting. Better numbers help you protect capital and negotiate with more confidence.
FAQs
What is a hard money loan?
A hard money loan is short-term financing often used by real estate investors. Approval usually depends on property value, deal strength, and exit plan.
What does loan to cost mean?
Loan to cost compares the loan amount with the total project cost. It helps show how much of the project a lender may finance.
What does loan to value mean?
Loan to value compares the loan amount with the after repair value. Many lenders use it to limit risk after renovation.
Are loan points included?
Yes. The calculator estimates points by multiplying the loan amount by the points percentage. These are usually paid at closing.
Why add a rehab contingency?
A contingency helps cover surprise repair costs. It creates a safer estimate when bids change or hidden issues appear during renovation.
Does this calculator include holding costs?
Yes. It includes monthly taxes, insurance, utilities, other carrying costs, and interest across the selected loan term.
Can I use this for rental projects?
You can use it for acquisition and rehab planning. For rental analysis, also review rent, vacancy, management, repairs, and refinancing terms.
Is the result a lender approval?
No. The result is only an estimate. Actual approval depends on lender rules, borrower strength, property condition, title review, and market value.