What do hard money loans typically cost?

Short-term rehab loans commonly carry rates around 9% to 12% with 1 to 3 points, and often lend 80% to 90% of purchase and rehab, capped at a share of ARV. Terms vary by lender, experience and the property.

What is the 70% rule?

A rule of thumb that says pay no more than 70% of the after-repair value minus rehab costs. It leaves room for financing, holding and selling costs plus a profit. In competitive California markets many deals trade above it, which makes the full math more important.

Why does the holding period matter so much?

Every extra month adds interest and holding costs, and it stretches the time your cash is tied up, which lowers the annualized return. A two-month delay can turn a solid flip into a thin one.

All calculators · Investors and self-employed

Fix and Flip Calculator

A flip lives or dies on the spread between what you pay in and what it sells for. Enter the purchase, rehab and after-repair value with your short-term financing and holding period, and see the profit, the return on your cash and what that works out to per year.

Estimated profit

$62,100

36.1% on $171,900 of your cash over 6 months.

Purchase67%
Rehab13%
Financing5%
Holding and closing2%
Selling costs6%
Profit7%

Short-term loan: $612,000
Points: $12,240
Interest over the hold: $33,660
Holding costs: $9,000
Selling costs: $54,000
Total cost: $837,900
Cash you put in: $171,900
Profit: $62,100
ROI on your cash: 36.1%
Annualized return: 85.3%
Profit margin on sale price: 6.9%
70% rule maximum price: $510,000

The price is $90,000 above the 70% rule, so the margin depends on the ARV holding; every extra month costs about $7,110.

Get exact numbers from our team (949) 774-9599

Estimates for illustration only, not a loan offer or a commitment to lend. Rates, taxes, insurance and program rules vary; our team will confirm exact figures for your situation.

How this calculator works.

The short-term loan is a share of total cost, the purchase price plus rehab, which is how many hard money and fix-and-flip lenders size them. Points are charged on the loan at closing, and interest is calculated as interest-only on the full loan for the holding period.

Total cost adds the purchase, purchase closing costs, rehab, points, interest, monthly holding costs (taxes, insurance and utilities) and selling costs, a percentage of the sale price that covers commissions and closing.

Profit is the after-repair value minus total cost. ROI divides profit by the cash you put in: your share of purchase and rehab plus closing costs, points, interest and holding costs. Annualized return compounds that ROI over a year.

Profit = ARV − (purchase + rehab + closing + points + interest + holding + selling). ROI = profit ÷ cash invested.

Common questions.

Turn the estimateinto real numbers.

Answer a few questions and our team will price your scenario with current rates and the right program.

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