Hard money and fix-and-flip loan calculator
Loan amount, cash to close and profit on your flip, from the price, rehab budget and after-repair value (ARV). No sign-up.
Your fix-and-flip estimate
- Purchase funding (90%)
- $180,000
- Rehab funding (100%)
- $60,000
- ARV limit (75%)
- $270,000
- Loan amount
- $240,000
- Cash to close
- $28,800
- Interest over 6 months
- $11,550
- Holding + selling costs
- $27,600
- Estimated profit
- $52,050
- Return on cash
- 122% (244% a year)
- Cost of a 2-month delay
- $4,650
- Highest offer for 15% profit
- $198,207
Profit is 14.5% of ARV, under your 15% target. Offer $198,207 or less to hit it.
Get my term sheetEstimate only, from the numbers you enter. Not a loan offer. Actual terms are subject to underwriting.
How to use the hard money loan calculator
- Enter the purchase price, your rehab budget and the after-repair value (ARV) from comparable sales.
- Pick your flip experience. It sets how much of the purchase is financed.
- Enter a rate and points to test and the months until you sell.
- Add closing, holding and selling costs.
- Read the loan amount, cash to close, profit and the highest offer for your target profit.
- Copy the link to share the deal with a partner or your loan officer.
How a hard money loan is sized
The purchase and rehab funding add up, then the ARV limit caps the total:
- Loan-to-cost (LTC) on the purchase: 85% for a first flip, 90% standard, up to 100% for experienced investors.
- Rehab: up to 100% of the budget, released in draws.
- After-repair value (ARV): the total loan stays at or under 75% of ARV. If purchase plus rehab funding is more, the ARV limit sets the loan.
What a flip really costs
Beyond the price and rehab, budget for points (paid at closing) and interest (interest-only, on the drawn balance).
Add closing costs on the purchase, holding costs while you own it and selling costs, often 6 to 8% of the sale price.
The 70% rule is a quick screen: pay no more than 70% of ARV minus the rehab. The calculator replaces the rule with your actual numbers.
Worked example: a $200,000 flip, line by line
A house bought for $200,000 needs $60,000 of work and should sell for $360,000.
The investor has done two flips, borrows at an assumed 11% with 2 points, and sells in 6 months.
| Line | Amount |
|---|---|
| Loan: 90% of price + 100% of rehab | $240,000 |
| Down payment (10% of price) | $20,000 |
| Points (2%) + purchase closing costs (2%) | $8,800 |
| Cash to close | $28,800 |
| Interest, 6 months (rehab drawn over time) | $11,550 |
| Holding costs, 6 months | $2,400 |
| Selling costs (7%) | $25,200 |
| Profit | $52,050 |
| Cash in the deal | $42,750 |
The profit is 14.5% of the sale price, about 122% on the cash invested over 6 months. Two extra months would add about $4,650 in interest and holding.
To earn a 15% margin, the highest offer is about $198,000. Enter these numbers above to test your own changes.
The 70% rule, and why to go past it
The 70% rule says: pay no more than 70% of the ARV, minus the rehab. On the example, 70% of $360,000 is $252,000, minus $60,000 of rehab gives a $192,000 maximum offer.
It is a fast screen, but it ignores your actual rate, points, hold time and selling costs.
With low selling costs or a short hold, the rule is too strict. With a long rehab or high taxes, it is too loose.
The calculator's highest-offer line solves for your real target profit instead.
How a draw schedule works
The rehab money is held back at closing and released in stages after an inspector checks the work. A typical $60,000 budget might be drawn like this:
| Stage | Work | Draw |
|---|---|---|
| 1 | Demo, framing, roof | $15,000 |
| 2 | Plumbing, electrical, HVAC | $18,000 |
| 3 | Drywall, windows, insulation | $12,000 |
| 4 | Kitchen, baths, flooring, paint | $15,000 |
You fund each stage and get reimbursed after inspection. Keep enough cash to carry one stage at a time.
Interest is charged only on what has been drawn. That is why the calculator charges the rehab portion for about half the hold.
Hard money vs. bridge vs. DSCR
| Fix and flip (hard-money) | Bridge | DSCR | |
|---|---|---|---|
| Use | Buy and renovate | Buy or refi, light or no work | Hold a rental |
| Term | 6 to 24 months | 6 to 24 months | 30 years |
| Payments | Interest-only | Interest-only | Amortizing or interest-only |
| Sized on | Cost and ARV | As-is value | Rent vs. payment |
| Rehab funding | Yes, in draws | Usually no | No |
Many investors use two of these on one property: a fix-and-flip loan to buy and renovate, then a DSCR cash-out refinance to keep it as a rental.
How lenders check your ARV
The after-repair value is the biggest number in the deal, so lenders verify it.
An appraiser values the property as if the renovation were done, using similar nearby sales (size, age and finish), usually from the last 3 to 6 months.
Your scope of work matters: a detailed budget by room and trade makes the as-completed value easier to support.
An appraisal below your estimate shrinks the loan to stay within 75% of the new ARV. Test a lower ARV here before you offer.
Fix-and-flip loans for foreign nationals
Fix-and-flip loans are open to investors living outside the U.S. No SSN or U.S. credit required.
Expect somewhat lower leverage, a U.S. LLC, a U.S. bank account for draws and a trusted local contractor, since you won't be at every inspection.
See hard money loans for foreign investors for the full checklist.
Common flip budgeting mistakes
- An optimistic ARV. Use sold comparables from the last 3 to 6 months, not listings.
- No contingency. Add 10 to 15% to the rehab budget for surprises behind the walls.
- Underestimating time. Every extra month adds interest and holding costs. The calculator shows what 2 months of delay costs.
- Forgetting selling costs. Commissions, transfer tax and seller credits often take 6 to 8% of the sale price.
- Carrying the draws. Rehab money is reimbursed after inspection, so you need cash to fund each stage first.
Sell or keep it: your exit
Most flips sell. Numbers work better as a rental? Refinance into a long-term DSCR loan (buy, renovate, rent, refinance) and check the rental with the DSCR calculator.
Program terms are on the fix and flip (hard-money) loans page. Foreign nationals can use every program, fix and flip included.
Common questions
How much can I borrow on a hard money loan?
Up to 90% of the purchase price (100% for experienced flippers) plus up to 100% of the rehab.
The total is capped at 75% of the after-repair value. The lower limit sets the loan.
What is ARV?
After-repair value: what the property will be worth once the renovation is done, based on the appraiser's comparable sales. It sets the ceiling on a fix-and-flip loan.
Is the rehab money paid at closing?
No. The rehab part is held back and released in draws as the work is inspected. Interest runs only on what has been drawn.
This calculator assumes draws spread evenly over the project.
Do first-time flippers qualify?
Yes, with a solid budget and contractor. First flips get around 85% of the purchase.
The rate improves with each completed project.
Is this calculator a loan offer?
No. It runs on your own numbers and assumed rate. Your actual leverage, rate and fees come on the same-day term sheet, subject to underwriting.