Bridge Loan Calculator

Calculate the exact total cost of a short-term bridge loan, including monthly interest-only payments, origination fees, and the final payoff amount.

Loan amount USD Total principal borrowed Please enter a valid loan amount

Interest rate % Annual percentage rate (APR) Please enter a valid interest rate

Loan term months Typically 6 to 18 months Please enter a valid term

Origination fee % Upfront fee charged by the lender Please enter a valid fee

Other upfront fees USD Appraisal, admin, or legal costs Please enter valid fees

Calculation Results

Total Cost of Loan

— USD

How to use this bridge loan calculator

Enter the loan amount

Input the total principal amount you plan to borrow.

Set rate and term

Enter the annual interest rate (APR) and the duration of the loan in months. Bridge loans are typically 6 to 18 months.

Include your fees

Add the origination fee percentage and any other flat fees (like appraisal or administrative fees) the lender charges.

Review the total costs

The calculator instantly reveals the monthly interest payment, total fees, and the overall cost of capital.

Estimated Bridge Loan Costs (Includes 2% Origination Fee)

Loan Principal	Interest Rate	Loan Term	Estimated Total Cost
$1,00,000	8% APR	6 Months	$6,000
$1,00,000	8% APR	12 Months	$10,000
$1,00,000	10% APR	6 Months	$7,000
$1,00,000	10% APR	12 Months	$12,000
$1,00,000	12% APR	6 Months	$8,000
$1,00,000	12% APR	12 Months	$14,000
$2,50,000	8% APR	6 Months	$15,000
$2,50,000	8% APR	12 Months	$25,000
$2,50,000	10% APR	6 Months	$17,500
$2,50,000	10% APR	12 Months	$30,000
$2,50,000	12% APR	6 Months	$20,000
$2,50,000	12% APR	12 Months	$35,000
$5,00,000	8% APR	6 Months	$30,000
$5,00,000	8% APR	12 Months	$50,000
$5,00,000	10% APR	6 Months	$35,000
$5,00,000	10% APR	12 Months	$60,000
$5,00,000	12% APR	6 Months	$40,000
$5,00,000	12% APR	12 Months	$70,000
$10,00,000	8% APR	6 Months	$60,000
$10,00,000	8% APR	12 Months	$1,00,000
$10,00,000	10% APR	6 Months	$70,000
$10,00,000	10% APR	12 Months	$1,20,000
$10,00,000	12% APR	6 Months	$80,000
$10,00,000	12% APR	12 Months	$1,40,000
$20,00,000	8% APR	6 Months	$1,20,000
$20,00,000	8% APR	12 Months	$2,00,000
$20,00,000	10% APR	6 Months	$1,40,000
$20,00,000	10% APR	12 Months	$2,40,000
$20,00,000	12% APR	6 Months	$1,60,000
$20,00,000	12% APR	12 Months	$2,80,000

Frequently asked questions

What is a bridge loan?

A bridge loan is short-term financing used to "bridge" a gap in funding until permanent financing is secured or an underlying obligation is met. They are common in real estate, allowing buyers to purchase a new home before their current home sells, or by investors to acquire and stabilize commercial properties.

Are bridge loans interest-only?

Yes, in the vast majority of cases, bridge loans are structured as interest-only loans. This means your monthly payments only cover the interest accrued, while the entire principal balance is due as a balloon payment at the end of the loan term (or when the property sells).

Why are bridge loan interest rates higher?

Bridge loans carry higher risk for lenders because they are short-term and often rely on the sale of a property that hasn't happened yet, or a business transition that isn't complete. To compensate for this elevated risk and the short timeframe in which they earn interest, lenders charge higher APRs and upfront origination fees.

What is an origination fee?

An origination fee is an upfront charge by the lender to process, underwrite, and execute the loan. For bridge loans, it is usually expressed as a percentage of the total loan amount (often 1% to 3%) and is paid at closing or deducted from the initial loan disbursement.

About this calculator

This bridge loan calculator helps real estate investors, homebuyers, and business owners estimate the true cost of short-term financing. Because bridge loans are typically structured as interest-only payments with a balloon principal payoff at maturity, calculating the exact out-of-pocket expense requires a specific formula.

The mathematical formulas used in this tool are:

Monthly Interest Payment = Principal × (Annual Interest Rate ÷ 12)
Total Interest Paid = Monthly Interest Payment × Loan Term (Months)
Total Fees = (Principal × Origination Fee %) + Flat Fees

Total Cost of Loan = Total Interest Paid + Total Fees

It is crucial to factor in upfront fees (like origination and appraisal costs) when evaluating a bridge loan. In many short-term scenarios (e.g., 6 months), the origination fee can actually cost you more out-of-pocket than the interest payments themselves. Always review the full cost of capital, not just the advertised interest rate.