Bridge Loan Calculator
See the monthly interest and the full cost of a short-term bridge loan before you commit.
Interest-only by design
You usually pay only interest each month and repay the principal in one lump sum when your old property sells.
Short and expensive
Bridge loans carry higher rates and fees than a regular mortgage, so the cost adds up fast.
What is a bridge loan?
Financing the gap
A bridge loan is short-term financing that covers the gap between buying a new property and selling your current one. It lets you put a deposit on the new home before the old one closes, then repay the loan from the sale proceeds. Because the loan is short and the lender takes on more risk, the interest rate and fees are higher than a standard mortgage. According to consumer-finance resources, most bridge loans are interest-only — you pay only the interest each month and settle the principal in a single payment at the end. This calculator estimates that monthly interest and the full cost of the loan.
The calculation has two parts: the monthly interest and the up-front fee.
monthly interest = balance × (annual rate ÷ 12); total cost = interest + feeThe monthly interest is the loan balance times the monthly rate — the annual rate divided by twelve. Because a bridge loan is interest-only, that same payment repeats every month and the balance does not fall until you repay the principal in full. The origination fee is a one-time charge, usually 1% to 3% of the loan, taken up front to set up the financing. Adding the total interest over the term to that fee gives the all-in cost of borrowing. Research shows the biggest driver of that cost is the combination of a high rate and how many months you actually need the loan, so an early sale saves real money.
You borrow 100,000 at 9% for six months, with a 1.5% origination fee.
Find the monthly rate
9% ÷ 12 = 0.75% per month.Monthly interest
100,000 × 0.75% = 750 in interest each month.Total interest
750 × 6 months = 4,500 over the term.Add the fee
A 1.5% fee is 1,500, so the total cost is 4,500 + 1,500 = 6,000.
Three inputs decide how expensive a bridge loan really is.
The interest rate
Bridge rates run well above standard mortgages, so even a couple of points adds noticeably to the monthly interest.
How long you hold it
Every extra month adds another full interest payment, so a quick sale is the single biggest cost saver.
The origination fee
A one-time percentage of the loan that you pay regardless of how fast you repay — it can rival a month or two of interest.
If you are weighing other ways to finance property, our construction loan calculator covers building rather than buying, and our biweekly mortgage calculator shows how a long-term loan can be paid off faster. Comparing the all-in cost of each option is the key to choosing well.
The headline figure is the monthly interest you owe while the bridge loan is outstanding. The total interest is what that adds up to over the term you entered, the origination fee is the one-time set-up charge, and the total cost combines the two into the real price of the financing. When the old property sells, you repay the principal in a lump sum; the cost figures here are on top of returning that principal. Use the total cost to compare a bridge loan against alternatives such as a home-equity line or simply waiting, and remember that the cost climbs with every extra month the loan stays open.
The arithmetic is exact; your actual terms may differ.
An estimate — confirm with your lender
This calculator assumes a simple interest-only structure with one rate and a single up-front fee. Real bridge loans vary widely: some charge points, appraisal, legal, or exit fees, some compound or defer interest, and some are structured as a second mortgage with different terms. It also assumes you hold the loan for the full term you enter. This calculator is for informational and planning purposes only and is not financial advice. Confirm the exact terms and all fees with your lender, and consult a qualified financial advisor before taking on bridge financing.