{
  "slug": "hard-money-bridge-cost",
  "title": "Hard Money Bridge Loan Total Cost Calculator",
  "heading": "Hard Money Bridge Loan Total Cost Calculator",
  "category": "financial",
  "url": "https://www.revenuelab.fyi/toolbox/hard-money-bridge-cost",
  "summary": "Total all-in cost of a short-term hard money or bridge loan, points included.",
  "description": "Hard money and bridge loans price differently than conventional debt — the headline rate is only part of the cost. Lenders typically charge origination points (1-3 points is common, sometimes more on riskier deals), and the interest-only monthly payments run for a short term, often 6-18 months, before the loan is refinanced or the property is sold. This calculator adds points, interest-only carrying cost over your planned hold, and any exit fee to give you the true all-in dollar cost and an annualized effective rate, which is almost always meaningfully higher than the quoted note rate because points get amortized over a short holding period rather than a 30-year term. A loan quoted at '10% plus 2 points' held for only four months carries an effective annualized cost well north of 15% once you account for the points being a fixed cost spread over a short window — exactly the kind of number that needs to be compared against your projected profit before you sign the loan documents, not after.",
  "formula": "Points cost = Loan amount × points%; Interest cost = Loan amount × rate × (months held ÷ 12); Total cost = Points cost + Interest cost + Exit fee; Effective annual rate = (Total cost ÷ Loan amount) × (12 ÷ months held) × 100.",
  "dateModified": "2026-09-30",
  "run_url": "https://www.revenuelab.fyi/api/public/calc?tool=hard-money-bridge-cost",
  "inputs": [
    {
      "id": "loanAmount",
      "label": "Loan amount",
      "kind": "number",
      "hint": null,
      "default": 180000,
      "unit": "$",
      "min": 1,
      "max": null
    },
    {
      "id": "rate",
      "label": "Interest rate",
      "kind": "number",
      "hint": null,
      "default": 10.5,
      "unit": "%/yr",
      "min": 1,
      "max": 20
    },
    {
      "id": "points",
      "label": "Origination points",
      "kind": "number",
      "hint": null,
      "default": 2,
      "unit": "pts",
      "min": 0,
      "max": 6
    },
    {
      "id": "monthsHeld",
      "label": "Months held",
      "kind": "number",
      "hint": null,
      "default": 6,
      "unit": null,
      "min": 1,
      "max": 36
    },
    {
      "id": "exitFee",
      "label": "Exit fee",
      "kind": "number",
      "hint": null,
      "default": 1500,
      "unit": "$",
      "min": 0,
      "max": null
    }
  ],
  "outputs": [
    {
      "id": "totalCost",
      "label": "Total all-in cost of loan",
      "format": "currency",
      "hint": null,
      "primary": true
    },
    {
      "id": "effectiveAnnualRate",
      "label": "Effective annualized rate",
      "format": "percent",
      "hint": null,
      "primary": false
    },
    {
      "id": "monthlyInterestPayment",
      "label": "Monthly interest-only payment",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "pointsCost",
      "label": "Points cost",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "interestCost",
      "label": "Total interest cost over hold",
      "format": "currency",
      "hint": null,
      "primary": false
    }
  ],
  "worked_example": {
    "inputs": [
      "Loan amount: 180000 $",
      "Interest rate: 10.5 %/yr",
      "Origination points: 2 pts",
      "Months held: 6",
      "Exit fee: 1500 $"
    ],
    "outputs": [
      "Total all-in cost of loan: $14,550",
      "Effective annualized rate: 16.2%",
      "Monthly interest-only payment: $1,575",
      "Points cost: $3,600",
      "Total interest cost over hold: $9,450"
    ]
  },
  "how_to": {
    "title": "How to use this",
    "steps": [
      "Enter loan amount ($).",
      "Enter interest rate (%/yr).",
      "Enter origination points (pts).",
      "Enter months held.",
      "Enter exit fee ($).",
      "Read your total all-in cost of loan on the right — it updates as you type.",
      "Hit Share to keep the scenario or send it to someone."
    ]
  },
  "scenarios": [
    {
      "name": "Conservative",
      "description": "Lower-end numbers — what if things land soft?",
      "values": {
        "loanAmount": 110000,
        "rate": 10.5,
        "points": 1.2,
        "monthsHeld": 4,
        "exitFee": 900
      }
    },
    {
      "name": "Typical",
      "description": "Defaults — the most common real-world setup.",
      "values": {
        "loanAmount": 180000,
        "rate": 10.5,
        "points": 2,
        "monthsHeld": 6,
        "exitFee": 1500
      }
    },
    {
      "name": "Ambitious",
      "description": "Higher-end numbers — what if things really pop?",
      "values": {
        "loanAmount": 290000,
        "rate": 10.5,
        "points": 3.2,
        "monthsHeld": 10,
        "exitFee": 2400
      }
    }
  ],
  "limitations": [
    "Results are estimates before tax, fees, and inflation unless an input explicitly covers them.",
    "Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.",
    "This is educational maths, not financial advice. Check anything contractual with the lender or your accountant."
  ],
  "faq": [
    {
      "q": "Why is the effective rate so much higher than the quoted rate?",
      "a": "Points are a fixed dollar cost regardless of how long you hold the loan, so the shorter your actual hold period, the more those points weigh on your annualized cost. A 2-point fee is roughly equivalent to 4% annualized if held 6 months, but only about 1.3% annualized if held 18 months — same fee, very different effective cost."
    },
    {
      "q": "Should I negotiate points or rate first?",
      "a": "If you're confident in a short hold (under 6 months), negotiate points down aggressively since they hurt annualized cost the most; if you expect delays and a longer hold, negotiating the rate matters more since interest cost scales with time while points don't."
    },
    {
      "q": "What other fees show up that this calculator doesn't include?",
      "a": "Watch for draw fees on construction/rehab loans, extension fees if you need more time than the original term, appraisal and underwriting fees, and prepayment penalties on some programs (though many hard money loans have none). Ask for the full fee schedule in writing before closing, not just the rate and points."
    },
    {
      "q": "When does hard money make sense despite the cost?",
      "a": "When speed and flexibility (no income verification, fast close, financing based on the deal not your personal credit) let you win a deal or close in days instead of weeks, and your projected profit margin comfortably absorbs the financing cost. It's a tool for a specific window, not permanent financing — always have a clear refinance or sale exit before you close."
    }
  ],
  "related": [
    "https://www.revenuelab.fyi/toolbox/brrrr-refinance-capture",
    "https://www.revenuelab.fyi/toolbox/dscr-loan-sizing",
    "https://www.revenuelab.fyi/toolbox/subject-to-deal-math"
  ],
  "license": "CC-BY-4.0",
  "citation": "RevenueLab — Hard Money Bridge Loan Total Cost Calculator (https://www.revenuelab.fyi/toolbox/hard-money-bridge-cost)"
}