Bridge Loan Calculator
A bridge loan helps you buy a new home before your current one sells. Enter the amount, rate, term and fees to estimate your interest-only payment and the full cost of the loan.
Disclaimer: This calculator provides estimates for general informational and educational purposes only. It is not financial, lending, tax or legal advice, and it does not guarantee any loan terms, rate, payment or approval. Actual figures depend on your lender, credit, location and the final terms of any loan. Always confirm numbers with a licensed mortgage lender, financial advisor or housing counselor before making a decision.
What a bridge loan is
A bridge loan is short-term financing that "bridges" the gap between buying a new home and selling your current one. When the timing does not line up — you have found the home you want but your current one has not sold yet — a bridge loan lets you access the equity in your current home for a down payment or to close on the new property before the sale of the old one closes. Once your existing home sells, you use the proceeds to repay the bridge loan.
Bridge loans are deliberately short-term, typically running 6 to 12 months. They are almost always interest-only, and they carry higher rates and fees than a standard mortgage to compensate the lender for the speed and short window. The loan is secured by your current home, or sometimes by both homes, so the lender has collateral while you wait for the sale.
How the cost is figured
Because most bridge loans are interest-only, the monthly payment is simply the balance multiplied by the monthly interest rate:
Interest-only payment = balance × (annual rate ÷ 12)
On top of that, lenders charge an origination fee — a percentage of the loan, sometimes called points — paid up front. To estimate the full cost, this calculator adds the origination fee to the total interest you would pay across the term. Note that some bridge loans are structured with no monthly payment at all: instead of paying interest each month, the accrued interest is rolled up and repaid as a balloon payoff when your home sells.
A worked example
Take the default figures: a $100,000 bridge loan at 9.5% for 6 months with a 1.5% origination fee.
- The interest-only payment is about $792/month (100,000 × 9.5% ÷ 12).
- The origination fee is $1,500 (1.5% of $100,000).
- Over six months the total interest is about $4,750.
- The total cost of the bridge loan comes to roughly $6,250.
That is the price of buying before you sell. If your home sells faster, you pay fewer months of interest; if it drags on, the cost climbs.
What affects your bridge-loan cost
- The interest rate. Bridge rates are typically higher than standard mortgage rates, and a higher rate raises every monthly interest payment.
- The loan amount. The more equity you bridge, the larger the balance the interest is charged on.
- How long until your home sells. Every extra month is another interest payment. A quick sale keeps the cost low; a slow one adds up fast.
- Fees and points. The origination fee — and any points or administrative charges — is paid up front and adds directly to your total cost.
- The payment structure. Interest-only monthly payments, deferred interest rolled into a balloon, or partial principal payments all change what you owe and when.
Bridge loans are expensive and risky. If your current home takes longer to sell than you expect, you may end up carrying two housing payments plus the bridge loan at the same time. Before committing, consider alternatives such as a HELOC opened in advance or making your new-home offer contingent on the sale of your current one.
Frequently asked questions
What is a bridge loan?
A bridge loan is short-term financing that "bridges" the gap between buying a new home and selling your current one. It lets you tap the equity in your current home for a down payment or closing on the new property before your old home has sold, then is repaid when the sale closes.
How long does a bridge loan last?
Most bridge loans are short-term, typically 6 to 12 months. They are designed to be repaid quickly — usually as soon as your current home sells — rather than carried for years like a standard mortgage.
Are bridge loan payments interest-only?
Often, yes. Many bridge loans are structured as interest-only, so each monthly payment covers just the interest on the balance and the full principal is repaid in a lump sum at the end. Some lenders defer payments entirely and add the accrued interest to the payoff when your home sells.
How much does a bridge loan cost?
Cost depends on the loan amount, the interest rate and how long until your home sells, plus an origination fee or points charged up front. Bridge rates run higher than standard mortgage rates, so even a short loan can add up. This calculator estimates the interest-only payment, the origination fee and the total cost over the term.
Bridge loan vs HELOC — which is cheaper?
A HELOC usually carries a lower rate and more flexible repayment than a bridge loan, but it must be opened before you list your current home and lenders may be reluctant once it is on the market. A bridge loan is purpose-built for the transition but costs more. Compare both with our HELOC calculator.
What happens if my home does not sell?
This is the main risk. If your current home takes longer to sell than expected, you may have to carry two housing payments plus the bridge loan, and the loan can come due before the sale closes. Build in a cushion and have a backup plan before relying on a bridge loan.
Related tools
Compare your options with the HELOC calculator and the home equity loan calculator to see cheaper ways to tap your equity, the construction loan calculator if you are building rather than buying, and the refinance calculator once you are ready to settle into a long-term loan.