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Hard Money Points Calculator

Hard money loans charge 1-4 points (origination fee) upfront. On a short-term loan, points are significant — can add 3-8% to effective APR. This calculator sizes points and true cost.

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%
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All-in cost

$22,000

Effective APR

14.67%

Points cost

$4,000

Interest cost

$16,500

How the math works

$200K 2 points = $4,000 + 11% × 9/12 × $200K = $16,500 interest + $1,500 flat = $22,000 total. Effective APR 14.7%.

Shop lenders. 1 vs 2 points saves $2K on a $200K loan. Fewer points = slightly higher rate, but short-term loans often break even at 2 points vs 1 + 1% higher rate.

How to Use

  1. Enter loan amount, points, rate, and hold months.
  2. See points cost and effective APR including points.

Frequently Asked Questions

How many points typical?

2 points standard. 1 point for seasoned borrowers with clean track record. 3-4 points for new borrowers or risky projects. Negotiable.

Can I roll points into loan?

Sometimes — increases balance but no upfront cash. Check loan docs. If rolled, points technically add to interest base and increase total cost.

Effective APR?

Points + rate × time. On 9-month 11% loan with 2 points: base cost 11% + (2 pts / 9 months × 12) = 2.67% annualized = 13.67% effective APR.

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