property calculator

Bridge Loan Calculator

Interest-only cost, origination points, effective annual rate, and the surplus left after the sale.

Bridge loans are interest-only for 6-12 months with a 1-3% origination fee, so the effective annual cost runs well above the quoted rate. Example: a $150,000 bridge at 10.5% for nine months with a 2% fee and $1,500 of other costs totals $16,312.50 — 10.88% of the loan, or an effective 14.5% a year.

Quick actions: Save inputs, view saved runs, print, share, or export results

Saved Runs

Inputs

Current Home Value$

Current Mortgage Balance$

Existing Mortgage

Maximum LTV%

New Home Price$

Down Payment on the New Home%

Bridge Interest Rate%

Origination Fee%

Other Fees$

Bridge Termmo

Selling Costs on the Departing Home%

Results

Total Cost of the Bridge

$16,312

Bridge Amount$150,000

Maximum Bridge Available$211,000

Shortfall Against What You Need$0

Down Payment Needed$150,000

Existing Mortgage Paid by the Bridge$0

Monthly Interest-Only Payment$1,312.50

Total Interest$11,812

Origination Fee$3,000

Other Fees$1,500

Cost as a Share of the Loan10.87%

Effective Annual Cost14.50%

Cost Per Month$1,812.50

Selling Costs on the Departing Home$43,400

Net Sale Proceeds$291,600

Surplus After Repaying the Bridge$125,288

Tip

Bridge terms are short and the fees are front-loaded, so a delay changes the answer fast. Re-run it whenever the timeline moves.

Formula

Bridge loan formulas

Ceiling = Current Home Value × Max LTV%
Max Bridge = Ceiling − existing mortgage (if it stays in place)

Monthly Interest = Bridge Amount × (Annual Rate ÷ 12)
Total Cost = Monthly Interest × Months + Origination + Other Fees

Effective Annual Cost = Total Cost ÷ Bridge × (12 ÷ Months) × 100
Surplus = Net Sale Proceeds − Bridge Amount − Total Cost

Bridge loans are interest-only, so the payment is simply balance times rate divided by twelve and the principal is repaid in a lump when the departing home sells. The effective annual cost is the number that matters: because origination fees are charged once regardless of term, a bridge repaid in six months carries the same fee as one repaid in twelve and therefore costs proportionally more per year. There is no comfortable side of that trade, which is why the term should be set against a credible sale rather than a hopeful one.

Step by step

How the calculation works

1The loan-to-value ceiling applies to all debt against the departing home. If the existing mortgage stays in place the bridge is a second lien and capacity is the ceiling less that balance; if the bridge pays the mortgage off, the whole ceiling is available but the bridge must be correspondingly larger.
2Keeping the existing mortgage means carrying three payments at once — old mortgage, bridge interest, and the new home's mortgage. Paying it off removes one at the cost of a bigger bridge. Lenders underwrite that carrying ability even when equity is ample.
3Watch the effective annual cost rather than the headline rate. Front-loaded fees mean a short bridge is proportionally the most expensive kind, and a long one accrues more interest — the cost rises whichever way the timeline moves.
4The surplus after repayment is the real safety margin. If it is thin, the bridge was sized against an optimistic sale price, and a sale 10% below expectation can consume most of it.
5Check the cheaper alternatives first. A [HELOC](/calculators/home-equity-line-of-credit-heloc-calculator) or a [second mortgage](/calculators/second-mortgage-calculator) arranged before the home is listed usually costs far less, though most lenders will not open either on a property already on the market — which is the practical reason bridges exist.

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Interest-Only Mortgage Calculator

The same interest-only arithmetic measured in years rather than months.

property calculator

Bridge Loan Calculator

Interest-only cost, origination points, effective annual rate, and the surplus left after the sale.

Quick actions: Save inputs, view saved runs, print, share, or export results

Saved Runs

Inputs

Current Home Value$

Current Mortgage Balance$

Existing Mortgage

Maximum LTV%

New Home Price$

Down Payment on the New Home%

Bridge Interest Rate%

Origination Fee%

Other Fees$

Bridge Termmo

Selling Costs on the Departing Home%

Results

Total Cost of the Bridge

$16,312

Bridge Amount$150,000

Maximum Bridge Available$211,000

Shortfall Against What You Need$0

Down Payment Needed$150,000

Existing Mortgage Paid by the Bridge$0

Monthly Interest-Only Payment$1,312.50

Total Interest$11,812

Origination Fee$3,000

Other Fees$1,500

Cost as a Share of the Loan10.87%

Effective Annual Cost14.50%

Cost Per Month$1,812.50

Selling Costs on the Departing Home$43,400

Net Sale Proceeds$291,600

Surplus After Repaying the Bridge$125,288

Tip

Bridge terms are short and the fees are front-loaded, so a delay changes the answer fast. Re-run it whenever the timeline moves.

Summary

Key output metrics

Total Cost of the Bridge

$16,312

10.87% of the loan over 9 months

Effective Annual Cost

14.50%

Against a 10.50% headline rate, once fees are annualised

Surplus After the Sale

$125,288

From $291,600 of net proceeds after $43,400 of selling costs

D3 visualization

What the Bridge Costs

Interest accrues with time; the origination fee does not. That is why a short bridge is proportionally the most expensive kind.

Guide

How to understand and use this calculator

Quick Answer — How Much Does a Bridge Loan Cost?

Bridge loans are interest-only on the drawn amount for a short term, usually 6 to 12 months, with an origination fee of 1% to 3% paid up front. Because the fee is spread over months rather than years, the effective cost is well above the quoted rate.

Maximum Bridge = (Current Home Value × Max LTV%) − existing mortgage, if it stays in place
Monthly Interest = Bridge Amount × (Annual Rate ÷ 12)
Total Cost = Interest × Months + Origination Fee + Other Fees
Effective Annual Cost = Total Cost ÷ Bridge Amount × (12 ÷ Months) × 100

Worked example: a $620,000 home with a $285,000 mortgage staying in place, at an 80% ceiling, gives $211,000 of capacity. A $150,000 bridge covers the 20% down payment on a $750,000 purchase.

At 10.5% the interest-only payment is $1,312.50 a month. Over 9 months that is $11,812.50, plus a 2% origination fee of $3,000 and $1,500 of other fees — $16,312.50 total, or 10.88% of the loan. Annualised, the effective cost is 14.5%, four points above the headline rate.

How to Use This Calculator: A $150,000 Bridge on a $620,000 Home

Start with the departing home's value and its mortgage balance. The loan-to-value ceiling applies to all debt against that property, so if the existing mortgage stays in place the bridge is a second lien and capacity is the ceiling less the mortgage: $496,000 − $285,000 = $211,000 here. If the bridge instead pays off the existing mortgage, the whole ceiling is available but the bridge has to be that much larger.

Enter the new home's price and the down payment you need. $150,000 covers 20% of a $750,000 purchase, comfortably inside the $211,000 available. Where capacity falls short, the calculator reports the shortfall — and a shortfall is a hard stop, not a negotiating position.

The interest-only payment of $1,312.50 is what you pay monthly while both properties are held. Note that this sits on top of the existing mortgage payment and the new home's mortgage payment: for those nine months you are carrying three housing obligations, which is the real cash-flow test of a bridge and the reason lenders underwrite the borrower carefully even when the equity is ample.

The effective annual cost of 14.5% against a 10.5% headline is the number that gets underestimated. The origination fee and other charges are the same whether the bridge lasts three months or nine, so a bridge repaid quickly is proportionally more expensive, and one that runs long accrues more interest. There is no comfortable end of that trade — which is why a bridge should be sized to a specific, credible sale rather than a hopeful one. For an interest-only structure measured in years instead of months, the interest-only mortgage calculator shows the same arithmetic on a longer horizon.

A Second Example: A Bridge That Pays Off the Existing Mortgage

The other common structure replaces the first mortgage rather than sitting behind it. Take a $430,000 home with a $190,000 mortgage, a 75% ceiling, and a $560,000 purchase needing 20% down.

Because the bridge pays off the existing mortgage, the full ceiling of $322,500 is available and the bridge needs $302,000 — $112,000 for the down payment plus $190,000 to retire the mortgage. That fits, with $20,500 to spare.

The cost is proportionally larger. At 11.5% the interest-only payment is $2,894.17 a month, totalling $17,365 over 6 months, plus a $6,040 origination fee and $1,200 of other fees — $24,605, or 8.15% of the loan. Annualised that is 16.29%, higher than the first example despite similar terms, purely because the fees are spread over six months instead of nine.

The compensation is cash flow: the old mortgage payment disappears, so during the bridge period you carry the bridge interest and the new mortgage rather than three payments. When the home sells at $430,000 with 7% selling costs, net proceeds are $399,900, the bridge is repaid, and $73,295 remains. The surplus is what matters: it is the buffer if the sale price disappoints, and if it is thin the bridge was sized too aggressively.

When a Bridge Loan Is Worth It

The case for a bridge is timing, not price. It is always more expensive than a conventional mortgage — that is not the comparison. The comparison is against the alternatives: a sale contingency that a seller in a competitive market will reject, moving twice with storage in between, or losing a property you wanted. If a bridge secures a house you would otherwise not get, $16,000 is a defensible price on a $750,000 purchase. If it merely saves you the inconvenience of a rental, it is not.

Investors use bridges differently. For a flip or a BRRRR acquisition, a bridge or hard-money loan funds a purchase that conventional lenders will not touch — a property in poor condition, or a closing that has to happen in ten days. There the cost is a line item in the deal's underwriting, and the house flipping calculator and the BRRRR calculator both need it entered as a holding cost. It is also the financing an end buyer typically uses on a wholesale contract, which is why the maximum allowable offer calculator leaves them a margin large enough to absorb it.

The risk is entirely on the sale. A bridge assumes the departing home sells within the term at roughly the price you expect. If it does not, you face an extension fee, a higher rate, or a forced price reduction with the loan clock running. Bridge lenders generally underwrite the equity rather than the timeline, which means the timeline risk stays with you.

Consider the cheaper alternatives first. A HELOC opened *before* the home is listed is usually far cheaper than a bridge and can serve the same purpose, though most lenders will not open one on a property already on the market. A second mortgage can do the same at a lower rate if the timeline allows. Both need arranging in advance, which is the practical reason bridges get used: they are the option that remains once the offer is already on the table.

Limitations

This calculator assumes interest is paid monthly rather than accrued and settled at payoff, which some bridge lenders prefer — an accrued structure removes the monthly payment but increases the balance due at sale. It also assumes a single fixed rate with no extension, where extension fees and rate step-ups are common and are precisely what a delayed sale triggers. The costs shown are therefore a best case on the timeline you enter.

The maximum bridge figure is a loan-to-value calculation on the value you supply. Lenders will use their own valuation, will underwrite your ability to carry all obligations simultaneously, and may apply tighter ceilings than the ones typically quoted. Capacity in this model is not an approval, and a bridge is one of the products where lender appetite varies most.

Net sale proceeds assume the departing home sells at the value entered, with selling costs as a flat percentage. Both are estimates, and the whole structure depends on them: a sale 10% below expectation on a $430,000 home removes $43,000 from a surplus that may only be $73,295. Nothing here models capital gains treatment, prorated property taxes at closing, repairs demanded during the sale, or carrying costs on the departing property while it sits. This is a general educational tool, not lending advice — get written terms including extension provisions and consult a qualified professional.

Related Calculators

Check the cheaper alternatives first: a HELOC or a Second Mortgage Calculator run before the home is listed usually beats a bridge on cost, though both need arranging in advance. The Home Equity Calculator shows the position the bridge is secured against. For investor use, the House Flipping Calculator and the BRRRR Calculator need the bridge cost entered as a holding cost, and the Maximum Allowable Offer Calculator prices the acquisition it funds. The Interest-Only Mortgage Calculator shows the same interest-only arithmetic over years rather than months.

Related concepts

Effective Annual Cost

Total cost annualised over the actual term. Front-loaded fees make short bridges disproportionately expensive.

Bridge Capacity

The loan-to-value ceiling on the departing home, less any mortgage that stays in place. A shortfall here is a hard stop.

Surplus After Repayment

What is left from the sale once selling costs, the bridge, and its fees are met. The buffer if the sale price disappoints.

Frequently Asked Questions

How much does a bridge loan cost?+

Interest-only payments plus an origination fee of roughly 1% to 3%. On a $150,000 bridge at 10.5% for nine months with a 2% fee and $1,500 of other costs, the total is $16,312.50 — 10.88% of the loan, or an effective 14.5% annualised.

How is a bridge loan payment calculated?+

Bridge loans are interest-only, so the payment is the balance times the annual rate divided by twelve. A $150,000 bridge at 10.5% is $1,312.50 a month, with the principal repaid in full when the departing home sells.

How much can I borrow on a bridge loan?+

Against a loan-to-value ceiling on the departing home, typically 75% to 80% including any mortgage that stays in place. A $620,000 home with a $285,000 mortgage at an 80% ceiling gives $211,000 of capacity; if the bridge instead pays off that mortgage, the full $496,000 ceiling applies.

Why is the effective cost higher than the interest rate?+

Because the origination fee is the same whether the loan lasts three months or nine, so annualising it inflates the cost. A 10.5% bridge with a 2% fee over nine months costs an effective 14.5% a year; the same structure over six months costs more still.

How long is a bridge loan term?+

Usually 6 to 12 months, often with an extension option at additional cost. The term should be set against a credible sale timeline rather than an optimistic one, because an extension fee plus continued interest is exactly what a slow sale produces.

Do I make three housing payments during a bridge?+

If the existing mortgage stays in place, yes — the old mortgage, the bridge interest, and the new home's mortgage. A bridge that pays off the existing mortgage removes one of the three at the cost of a larger bridge, which is the main reason to choose that structure.

Is a HELOC cheaper than a bridge loan?+

Usually, sometimes by several points, but timing gets in the way. Most lenders will not open a HELOC on a home already listed for sale, so it has to be arranged before the property goes on the market. That is the practical reason bridges get used at all.

What happens if my house does not sell in time?+

You face an extension fee, a higher rate, or a price reduction with the loan clock running. Bridge lenders underwrite the equity rather than the timeline, which means the timeline risk stays with you — and it is why the surplus left after repayment matters more than the headline rate.

Formula

Bridge loan formulas

Ceiling = Current Home Value × Max LTV%
Max Bridge = Ceiling − existing mortgage (if it stays in place)

Monthly Interest = Bridge Amount × (Annual Rate ÷ 12)
Total Cost = Monthly Interest × Months + Origination + Other Fees

Effective Annual Cost = Total Cost ÷ Bridge × (12 ÷ Months) × 100
Surplus = Net Sale Proceeds − Bridge Amount − Total Cost

Step by step

How the calculation works

1The loan-to-value ceiling applies to all debt against the departing home. If the existing mortgage stays in place the bridge is a second lien and capacity is the ceiling less that balance; if the bridge pays the mortgage off, the whole ceiling is available but the bridge must be correspondingly larger.
2Keeping the existing mortgage means carrying three payments at once — old mortgage, bridge interest, and the new home's mortgage. Paying it off removes one at the cost of a bigger bridge. Lenders underwrite that carrying ability even when equity is ample.
3Watch the effective annual cost rather than the headline rate. Front-loaded fees mean a short bridge is proportionally the most expensive kind, and a long one accrues more interest — the cost rises whichever way the timeline moves.
4The surplus after repayment is the real safety margin. If it is thin, the bridge was sized against an optimistic sale price, and a sale 10% below expectation can consume most of it.
5Check the cheaper alternatives first. A [HELOC](/calculators/home-equity-line-of-credit-heloc-calculator) or a [second mortgage](/calculators/second-mortgage-calculator) arranged before the home is listed usually costs far less, though most lenders will not open either on a property already on the market — which is the practical reason bridges exist.

Related guides

Learn more about this calculation

Guide

Bridge Loan Calculator

Inputs

Results

Bridge loan formulas

How the calculation works

Learn more about this calculation

House Flipping Guide: How to Calculate ARV, 70% Rule, and Profit Margin

Loan Payment Guide: Formula, Interest, and Total Cost

Second Mortgage Calculator

House Flipping Calculator

BRRRR Calculator

Interest-Only Mortgage Calculator

Key facts

Bridge Loan Calculator

Inputs

Results

Key output metrics

What the Bridge Costs

How to understand and use this calculator

Quick Answer — How Much Does a Bridge Loan Cost?

How to Use This Calculator: A $150,000 Bridge on a $620,000 Home

A Second Example: A Bridge That Pays Off the Existing Mortgage

When a Bridge Loan Is Worth It

Limitations

Related Calculators

Related concepts

Frequently Asked Questions

Bridge loan formulas

How the calculation works

Learn more about this calculation

House Flipping Guide: How to Calculate ARV, 70% Rule, and Profit Margin

Loan Payment Guide: Formula, Interest, and Total Cost

Second Mortgage Calculator

House Flipping Calculator

BRRRR Calculator

Interest-Only Mortgage Calculator

Key facts

Key output metrics

What the Bridge Costs

How to understand and use this calculator

Quick Answer — How Much Does a Bridge Loan Cost?

How to Use This Calculator: A $150,000 Bridge on a $620,000 Home

A Second Example: A Bridge That Pays Off the Existing Mortgage

When a Bridge Loan Is Worth It

Limitations

Related Calculators

Related concepts

Frequently Asked Questions