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Bridge Loan Calculator

Estimate Your Costs and Payments

A bridge loan can be an invaluable tool for navigating financial transitions, whether you're buying a new property before selling your current one, funding a construction project, or managing other short-term financing needs. To help you make informed decisions, our Bridge Loan Calculator provides a simple and effective way to estimate costs and monthly payments.

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How to Use Our Bridge Loan Calculator

Using the calculator is simple. Input the following details:

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  1. Loan Amount: Enter the total amount you intend to borrow.

  2. Interest Rate: Input the annual interest rate offered by your lender.

  3. Loan Term: Specify the length of the loan, typically 6–24 months.

  4. Repayment Structure: Our loans follow and interest-only payment structure.

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Once entered, the calculator will provide:

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  • Estimated monthly payments.

  • Total interest paid over the loan term.

  • Total amount paid on the loan

Why Use a Bridge Loan Calculator?

Before entering into a bridge loan agreement, it’s important to understand the financial implications, including interest rates, payment schedules, and total costs. A bridge loan calculator allows you to:

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  • Estimate Monthly Payments: Enter your loan amount, interest rate, and repayment period to see what your monthly interest payments might look like.

  • Calculate Total Loan Costs: Understand the full financial commitment, including balloon payments at the end of the loan term.

  • Compare Options: Assess whether a bridge loan is the most cost-effective solution for your financial needs.

Bridge Loan Cost Disclosure

To help you evaluate whether a bridge loan is right for your situation, we provide this example of how a bridge loan may work.

  • Minimum and Maximum Repayment Period: Bridge loans typically have terms ranging from 6 to 24 months.

  • Maximum APR: The Annual Percentage Rate (APR) for a bridge loan may vary based on lender and borrower qualifications but is generally no higher than 18%. This includes interest and applicable fees.

  • Representative Example:
    A borrower receives a bridge loan of $100,000 at an interest rate of 10% APR for a 12-month term.

    • Origination fee: 2% ($2,000)

    • Monthly interest payments: $833.33

    • Total interest paid over the term: $10,000

    • Total repayment amount (principal + fees + interest): $112,000

Please note: The calculator provided is for educational purposes only. Actual loan terms and costs may vary depending on lender policies, property type, and borrower qualifications.

Summary of Bridge Loan Costs & Payment Structures

While bridge loans provide flexibility, they come with associated costs:

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Origination Fees: Typically range from 1.5–3% of the loan amount.
Interest Charges: Higher than traditional loans, often between 6–16% annually.
Closing Costs: Including appraisal fees, legal fees, and other administrative costs (1–4% of the loan amount).
Extension Fees: If the loan term is extended, additional charges may apply.

Bridge loans generally feature short terms and unique repayment structures:

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  • Interest-Only Payments: Borrowers pay only the interest each month, with the principal due as a balloon payment at the end of the term. This is the case for most 

  • Fully Amortizing Payments: In some cases, borrowers may opt for payments that cover both interest and principal during the loan term.

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Knowing your payment structure helps you prepare for monthly obligations and final costs.

How Interest Rates Work in Bridge Loans

Calculating an interest rate for a bridge loan takes into consideration multiple variables. However the most important variable is current interest rates, which are public data. Here is an example of current interest rates in the market.

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Benefits of Using Our Bridge Loan Calculator

  • Clarity: Gain a clear picture of how much your bridge loan will cost and what payments to expect.

  • Convenience: Accessible anytime, allowing you to explore different scenarios and adjust inputs as needed.

  • Informed Decisions: Make confident choices about your financial strategy with detailed cost breakdowns.

Apply Now for your Bridge Loan

Ready to talk? Submit our Application Form to speak with an expert on our team.

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