Finance category

Mortgage, loan, investing, tax, and money calculators.

Private Money Loan Calculator

Private money loans come from individual investors — often family, friends, or real estate-focused networks. Rates 8-13%, flexible terms. This calculator structures a fair deal and computes borrower cost and lender yield.

Loan amount

Interest rate

Term months

Points %

Payment type

Total cost to borrower

$24,000

Monthly payment

$1,250

Total interest

$22,500

Points cost

$1,500

Effective annual yield to lender

10.67%

How the math works

$150K at 10% IO for 18 months with 1 point: $1,250/mo interest + $1,500 points = $23,250 borrower cost. Lender yield 10.7%.

Private money is great when you have a track record. Lenders want collateral, experience, and trust. Treat every deal professionally — 1 bad deal ends the relationship.

Editorial noteMaintained by EveryCalc - Reviewed June 2026

EveryCalc calculators are designed for fast, practical estimates with transparent inputs and no required account. We use plain formulas, visible assumptions, and related tools so visitors can check the result from more than one angle.

Results are informational only. For financial, tax, legal, medical, construction, or other high-impact decisions, verify the output against primary sources or a qualified professional.

Learn more about our review process on the EveryCalc methodology page.

How this calculator works

What this page estimates

This Private Money Loan Calculator is built to give a quick, browser-based estimate for private money loan. Private money loans come from individual investors — often family, friends, or real estate-focused networks. Rates 8-13%, flexible terms. This calculator structures a fair deal and computes borrower cost and lender yield. The inputs stay on the page during normal use, and the result should be treated as an estimate for planning, comparison, or education rather than professional advice.

Calculation approach

The calculator applies the standard relationship implied by the inputs, then formats the answer so it can be checked and reused. For finance tools, the most important step is using consistent units, rates, time periods, and assumptions before comparing the result with another calculator or outside quote.

Example workflow

For example, start with a realistic value you already know, change one input at a time, and watch how the answer moves. That makes it easier to tell whether the result is being driven by the main amount, the rate, the time period, or a unit conversion.

Practical checks

Use current, real-world numbers when the result affects money, health, tax, or legal decisions.
Run a low, base, and high case when the inputs are estimates.
Check the related calculators below when the next decision depends on a different assumption.

How to interpret the private money loan result

Best use

Use the result as a planning number for comparing payments, rates, returns, tax reserves, or cash-flow choices before you request a quote or make a commitment.

Cross-check

Compare the answer with the contract, lender estimate, tax form, brokerage statement, payroll record, or invoice that will control the real-world outcome.

Watch for

Do not rely on a single optimistic rate, return, or fee assumption. Money pages work best when you run low, base, and high cases and keep professional advice separate from the estimate.

This page belongs to the Finance calculator library, so the answer should be read in the context of the decision you are modeling rather than as a universal rule.

Before relying on this private money loan estimate

Most calculator mistakes come from the inputs, not the arithmetic. Use this short audit before you reuse the answer in a spreadsheet, quote, application, or important conversation.

Confirm source numbers

Match balances, rates, fees, taxes, income, and payment dates against the lender quote, payroll record, tax form, statement, invoice, or contract.

Separate cash flow from total cost

A lower monthly payment can still cost more over time if fees, interest, taxes, or a longer term are hidden in the structure.

Run conservative cases

Test at least one higher-cost or lower-return case before using the output for a purchase, refinance, investment, loan, or tax decision.

Rerun this page when the rate, price, term, fee, tax rule, income, expense, or expected holding period changes.

How to Use

Enter loan amount, rate, term, and any points.
See monthly payment, total cost to borrower, and yield to lender.

Frequently Asked Questions

Private vs hard money?

Private money: individual lender, relationship-based, flexible. Hard money: professional lender, institution, standardized process. Private usually cheaper (8-12% vs 10-14% hard money) but requires network.

Secured by property?

Should be. Mortgage or deed of trust on the property protects the lender. Unsecured private loans are high-risk for lender. Record the lien.

How structured?

Promissory note + mortgage/deed of trust. Interest-only or amortizing. Balloon typical (12-36 months). Title insurance for lender. RE attorney for both sides.