1. The deal
What you expect it to sell for. Use sold comparables, not a hope.
Agent fees, closing, transfer tax, as a share of the sale price.
Taxes, insurance, utilities.
2. Lender A
Share of the purchase price the lender funds.
Share of the rehab budget, released in draws.
Interest only.
Of the whole commitment, purchase plus rehab.
Underwriting, processing, documents.
Inspection or wire.
0 if none. Charged on the full commitment even if you sell sooner.
Per extension, of the commitment.
3. Lender B
Share of the purchase price the lender funds.
Share of the rehab budget, released in draws.
Interest only.
Of the whole commitment, purchase plus rehab.
Underwriting, processing, documents.
Inspection or wire.
0 if none. Charged on the full commitment even if you sell sooner.
Per extension, of the commitment.
Result
Questions flippers ask
What does a hard money loan really cost?
Add the interest, the points, the flat fees, the fee on every draw and any extension fees, then divide by the money you actually had outstanding. A 10% loan with 2 points and draw fees on a six-month flip can cost a rate well above 15% a year, because the points are paid on money that is only outstanding for months. This tool shows that effective rate for each lender.
Are points charged on the rehab money too?
Usually yes: points are quoted on the whole loan commitment, purchase plus rehab, even though the rehab part is released in draws and earns interest only once drawn. Check your term sheet. Enter the lender's own definition in the points and advance fields.
When does the lower rate lose?
When the lender with the lower rate charges more points, draw fees or a minimum-interest period. On a short flip the upfront cost dominates; on a long one the rate does. The tool finds the hold length at which the two lenders cost the same.
What happens if my flip runs late?
Interest keeps running, holding costs keep running, and past the loan term extension fees apply. The sensitivity table shows the finance cost and profit at 3 to 15 months so you can see what a delay costs before you sign.
Is this lending, legal or financial advice?
No. It is arithmetic on the terms you type, with simplifications listed under Not decided. Read the lender's actual term sheet and loan documents, and ask a lawyer or accountant before you borrow.
Not decided
Whether you will qualify, the lender's ARV cap and appraisal, interest compounding or per-diem conventions, rate bumps on extension, prepayment penalties beyond a minimum-interest period, closing costs on the sale, taxes on the profit, and the time value of your own cash. Rehab draws are assumed to be released in equal steps over the rehab period. Term sheets and law differ by lender and state.
Related tools: the fix-and-flip deal analyzer, the rental DSCR calculator and the 1031 exchange calculator.