Bridge Loan Calculator

Bridge Loan Calculator

Bridge loans provide short-term financing to bridge the gap between buying a new home and selling your current one.

What This Calculator Shows

• Monthly Payment: Your expected payment amount based on loan terms
• Total Interest: The cost of borrowing over the loan lifetime
• Amortization Schedule: How payments split between principal and interest
• Payment Breakdown: Visual representation of your loan costs

How to Calculate

1. Enter your loan amount 2. Input the interest rate (APR) 3. Select the loan term 4. Review your payment details and total costs

Key Considerations for Bridge Loan

• Compare offers from multiple lenders before committing
• Understand all fees including origination, closing costs, and prepayment penalties
• Consider how rate changes might affect your payments (for variable rates)
• Factor in your overall financial goals and debt-to-income ratio

A bridge loan buys time between purchase and sale. It is short (6–12 months), expensive (2–4 points above a mortgage plus 1.5–3% in fees) and secured against the property you are still trying to sell.

The real cost is not the rate, it is the overlap:

Cost during a 6-month bridge	Amount
Bridge interest at 9.5% on $200,000	$9,500
Origination at 2%	$4,000
Old mortgage still being paid	varies
New mortgage	varies

You are carrying two properties. If the old one does not sell on schedule, the bridge has to be extended at a further cost, or refinanced. Take one only when the sale is a matter of timing rather than of price.

The Numbers This Page Opens With

The calculator above starts at $200,000 over 1 year at 9.5%, which is representative for this product:

Monthly payment	$17,537
Total repaid	$210,440
Total interest	$10,440
Interest as a share of principal	5%

Change any input above and every figure recalculates. The amortisation formula behind it:

`` M = P × [ r(1+r)^n ] / [ (1+r)^n − 1 ]

P = principal, r = monthly rate (annual ÷ 12), n = number of payments ``

Before You Sign

• Compare APR, not the rate. APR includes origination and points; the rate does not.
• Ask about prepayment penalties. They turn a plan to pay early into a fee.
• Rate-shop inside 14 days. Credit scoring models treat multiple mortgage or auto

enquiries in that window as one enquiry.

• Check whether the payment includes escrow. A mortgage quote without taxes and insurance

understates the real monthly cost by hundreds.

Where the Money Goes

On $200,000 at 9.5% over 1 year, paying $17,537 a month:

Point	Principal repaid	Interest paid	Balance
Month 3	$48,240	$4,370	$151,760
Month 6	$97,635	$7,585	$102,365
Month 9	$148,212	$9,618	$51,788
Month 12	$200,000	$10,440	$0

Early payments are mostly interest. That is not a fee structure — it is arithmetic: interest accrues on the outstanding balance, which starts at its largest. It is also why an extra payment made early saves far more than the same payment made late.

What a Rate Change Costs

Rate	Monthly	vs 9.5%	Total repaid
8.50%	$17,444	-$93	$209,327
9.00%	$17,490	-$46	$209,884
9.50%	$17,537	—	$210,440
10.00%	$17,583	+$46	$210,998
10.50%	$17,630	+$93	$211,557

Half a percentage point moves the monthly payment by $46 and the total by $558. Shopping three lenders usually beats any amount of negotiating on price.