Bridge Loan Calculator

About this calculator

A bridge loan is short-term, interest-only financing that covers the gap between two transactions — most commonly buying a new property before the old one sells. Monthly cost is straightforward: interest = loan amount x annual rate, divided by 12, with no principal paid down during the term, plus a one-time origination fee (typically 1-3 points, i.e. 1-3% of the loan amount) charged upfront.

Homebuyers use bridge loans to make a non-contingent offer on a new house while their current one is still on the market, tapping the equity in the old property without waiting for its sale to close; businesses use the same structure to cover cash flow gaps or fund a purchase ahead of a longer-term refinance. Because rates on bridge loans run noticeably higher than a standard mortgage — reflecting the lender’s short-term risk — the total cost of fees and interest needs to be weighed against the convenience of not having to sell first.

This calculator takes your loan amount, interest rate, term and origination fee and returns the monthly interest, total cost and the amount due at payoff.