Bridge Loan Payment Calculator
Calculate your loan payments with our Bridge Loan Calculator and understand the total cost of borrowing. Bridge loans help you finance a new property while waiting to sell your existing one.
How to Use The Bridge Loan Calculator
1. Enter Loan Details
Input loan amount, annual interest rate, and the number of months.
2. Calculate Results
Click Calculate or simply edit any field results update live.
3. Reset & Recalculate
Use Reset to restore defaults and run another scenario.
Bridge Loan Calculator Overview
A bridge loan calculator helps you estimate what short-term financing might cost while you wait for your property sale or long-term loan to close. Enter your loan amount, interest rate, and term to see estimated monthly interest payments and the total cost of borrowing.
It’s a quick, reliable way to understand how bridge loans work before talking to a lender or comparing quotes.
Note: Results are for illustrative purposes only. Actual loan terms depend on lender criteria, credit profile, and property value.
How This Bridge Loan Calculator Works
This calculator estimates the cost of a typical interest-only bridge loan. It assumes you’ll pay only interest during the loan term and repay the principal in full once your home sells or permanent financing takes over.
What the calculation shows
- Monthly Payment: the interest-only amount due each month.
- Total Interest: the cumulative cost of interest across the full term.
- Total Payment: total interest plus the final balloon payoff (the original loan amount).
Underlying formulas
- Monthly Interest Payment = (Loan Amount × Interest Rate) ÷ 12
- Total Interest = Monthly Payment × Number of Months
- Total Payment = Total Interest + Loan Amount
These reflect the most common structure for short-term bridge financing, where the loan is secured by real estate and repaid once the sale or refinance closes.
How to interpret your results
Your results show three things: how much you’d pay in monthly interest, what that adds up to over the full term, and how much cash you’ll owe when the loan ends.
If your monthly interest seems high, remember that bridge loans carry higher rates because they’re short-term and risk-based. The key is to focus on total interest relative to your expected sale timeline; the shorter the term, the lower your total cost.
Use this as a planning tool to check whether the cost of carrying two properties (your current home and the new one) fits your budget and expected closing schedule.
Example scenario
Imagine you take out a $250,000 bridge loan at 8.5% interest for six months.
- Monthly interest payment: about $1,770.83
- Total interest cost: roughly $10,625
- Balloon payoff at the end of term: $250,000 (original principal)
That means you’d pay around $1,770 each month in interest and owe the full $250,000 once your current home sells or your refinance completes.
Understanding Bridge Loans
A bridge loan is short-term financing that helps borrowers “bridge” the gap between selling one property and buying another. It’s most common among homeowners and investors who need access to funds before an existing property transaction is finalized.
These loans are typically secured by real estate and are structured as interest-only, meaning you pay only interest during the term and repay the full principal once your property sells or long-term financing begins.
Typical features of a bridge loan:
- Higher interest rates than traditional mortgages (often 6% – 12%).
- Short terms, generally 6 – 12 months.
- Collateral-based approval, relying on available home equity and exit strategy.
- Flexible repayment, allowing early payoff without major penalties.
- Fast funding, often within 1 – 2 weeks.
Bridge loans are designed for timing problems, not long-term borrowing. They make sense when you have substantial home equity and a clear, short timeline for repayment such as when your home is under contract or refinancing is pending.
Before applying, make sure you can handle both payments (your current mortgage and the bridge loan interest) until your sale closes. It’s not just about qualifying, it’s about staying comfortable through the overlap period.
According to 2025 lender data and consumer mortgage reports, bridge loans are most frequently used by homeowners with at least 20% equity, strong credit scores (660+), and verified sale or refinance plans within six months.
Related Resource: For a deeper look at bridge loan rates, terms, and repayment examples, visit our Bridge Loan Guide.
Bridge Loan Calculator – FAQs
1) What does this Bridge Loan Calculator do?
This calculator estimates how much a bridge loan will cost over your chosen term. It focuses on interest-only payments, showing your estimated monthly interest, total interest, and final payoff amount. Use it to understand costs, not eligibility or approval odds.
2) Can I use this calculator to see how much I qualify for?
No. This tool is designed to show the cost of borrowing, not qualification limits. Lenders base approval on factors like property value, available equity, credit score, and your repayment plan—not just the loan amount you enter here.
3) What kind of bridge loans does this calculator apply to?
This calculator models short-term, interest-only bridge loans, which are common for homebuyers and real estate investors. It assumes you’ll repay the full principal once your property sells or a refinance is completed.
4) How do I know what interest rate to enter?
Bridge loan rates vary by lender, credit score, and market conditions. In 2025, they typically range from 6% to 12%. You can use a rate quoted by your lender or test different scenarios to see how interest changes your total cost.
5) Are closing costs or fees included in this calculator?
No. This calculator shows payment and interest only. It does not include lender origination fees, appraisal costs, or legal closing charges, which vary by lender. Always request a full loan estimate before finalizing any financing.
6) What’s the typical repayment timeline for a bridge loan?
Most bridge loans last 6 to 12 months, with interest-only payments throughout. The loan is usually repaid in full when your property sells or permanent financing is secured.
7) When does using a bridge loan make sense?
A bridge loan works best when you’ve found your next property but haven’t sold your current one. It helps you move quickly without waiting for your sale to close, as long as you have sufficient equity and a clear repayment plan.
Bridge Loan Calculator Disclaimer
This calculator is for informational purposes only and provides approximate calculations. The actual loan terms, interest rates, and payments may vary depending on your lender, credit score, and other factors. Always consult with a qualified financial advisor or lending professional before making any financial decisions. The results provided by this calculator should not be considered as financial advice or a guarantee of loan terms.
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The content on this website is for informational and educational purposes only and should not be considered financial, investment, or legal advice. Financial markets and regulations change frequently. Consult a qualified financial advisor or professional before making any decisions. We do not guarantee the accuracy or completeness of the information provided, and we are not responsible for any financial losses.