Bridge Loan Calculator – Calculate Bridge Financing Costs & Payments
Use our free bridge loan calculator to instantly calculate bridge loan costs and understand your bridge financing options. This comprehensive bridge loan payment calculator helps you understand bridge loan rates today, estimate the cost of bridging finance, and plan your strategy. Whether you need a bridge finance calculator, bridging loan calculator, or swing loan calculator, our tool shows how to calculate bridge financing for your home purchase. Learn how much does a bridge loan cost, explore bridge loan interest rates, and discover how much can you borrow on a bridge loan with our easy-to-use bridge loan mortgage calculator.
Bridge Loan Calculator
Required Bridge Loan Principal
$492,000.00
Estimated Total Repayment
$551,925.60
Detailed Cost Breakdown
Payment Details
Monthly Payment Due
$0.00
No payments required until maturity. All interest is rolled into the final repayment.
Loan-to-Value (LTV) Analysis
Overall LTV
40.55%
Excellent
2025 Bridge Loan Rates & Market Statistics
What is a Bridge Loan and How to Calculate Bridge Loan Costs
A bridge loan (also called bridging finance or swing loan) is short-term financing that bridges the gap between purchasing a new property and selling your existing one. Understanding how to calculate bridge financing is essential for homebuyers in transition. Our bridge loan calculator instantly shows you how to calculate bridge loan costs and helps you understand bridge loan interest rates, arrangement fees, and total repayment amounts. Use this bridging finance calculator to see exactly how much is a bridge loan and whether it's the right solution for your situation.
Bridge loan rates today typically range from 8-12% annually (0.67-1.0% monthly), significantly higher than traditional mortgage rates due to their short-term nature and higher risk. When you calculate bridge loan costs with our bridge financing calculator, you'll see that the cost of bridging finance includes multiple components: arrangement fees (typically 2% of the loan), monthly interest charges, exit fees (typically 1%), and potential appraisal costs. Our bridge loan payment calculator breaks down all these costs, showing you exactly how much does a bridge loan cost for your specific scenario.
How to Calculate Bridge Financing – Step by Step
Learning how to calculate bridge loan requirements is straightforward with our bridge loan mortgage calculator. The process involves: 1) Calculate net equity from your sale property (sale price minus mortgage and costs), 2) Determine total funds needed for purchase (price plus closing costs minus deposit), 3) Find the gap (funds needed minus available equity and cash), 4) Add arrangement fees to get gross loan amount, 5) Calculate interest based on term and rate, 6) Add exit fees for total repayment.
Our interest only bridge loan calculator and interest only bridging loan calculator show two payment methods. With rolled-up interest, all charges are paid at loan maturity with no monthly payments. With pay-monthly, you pay interest each month and principal at maturity. Use our bridging loan mortgage calculator to compare both options and see which works better for your cash flow.
Understanding Bridge Loan Rates and Current Bridge Loan Rates
Bridge loan rates are quoted as monthly percentages, typically 0.5-1.5% per month. When checking bridge loan rates today or searching for bridge loan rates today near me, remember that current bridge loan rates vary by lender, property location, LTV ratio, and creditworthiness. Bridge loan mortgage rates in 2025 average 0.75% monthly (9% annually), but can range from 0.67% to 1.0% monthly depending on these factors. Use our bridge loan calculator to see how different bridge loan interest rates affect your total costs.
Factors That Lower Bridge Loan Rates
- • Lower LTV ratio (below 70%)
- • Excellent credit score (740+)
- • High-value properties in prime locations
- • Shorter loan terms (6 months or less)
- • Existing relationship with lender
- • Quick sale timeline with firm buyer
Factors That Increase Bridge Loan Costs
- • Higher LTV ratio (above 75%)
- • Lower credit scores (below 680)
- • Properties in slower markets
- • Longer terms (12+ months)
- • Complex property situations
- • No confirmed buyer for sale property
Understanding the difference between bridge loan interest calculation methods is crucial. Our interest only bridge loan calculator shows that paying interest monthly results in lower total costs compared to rolled-up interest, where interest compounds monthly. However, rolled-up interest (where you pay nothing monthly) provides better cash flow during the transition period. Use our bridging loan calculator to compare both scenarios and see which fits your financial situation better.
Bridge Loan Example: Real-World Cost Scenarios
Let's walk through detailed bridge loan examples using our bridge loan calculator to show exactly how much does a bridge loan cost in different situations. These examples demonstrate how to calculate bridge financing and reveal the true cost of bridging finance for typical homebuyers.
Bridge Loan Example 1: Moderate Gap Scenario
Situation: Selling $500,000 home (owing $200,000) to buy $600,000 home
Net from Sale: $500,000 - $200,000 - $25,000 (commission) - $5,000 (closing) = $270,000
Purchase Needs: $600,000 + $8,000 (closing) - $60,000 (deposit) = $548,000
Available Cash: $30,000
Bridge Loan Required: $548,000 - $270,000 - $30,000 = $248,000
Using our bridge loan calculator:
• Arrangement Fee (2%): $4,960
• Gross Loan: $252,960
• Interest (0.75% monthly × 12 months): $22,766
• Exit Fee (1%): $2,480
• Total Repayment: $278,206 (Total Cost: $30,206)
Bridge Loan Example 2: Shorter Term, Interest Only
Situation: $150,000 bridge loan for 6 months with interest-only payments
Arrangement Fee (2%): $3,000
Gross Loan: $153,000
Monthly Interest (0.75%): $1,147.50 per month
Exit Fee (1%): $1,500
Cost breakdown:
• Total Interest Paid: $6,885 (6 months × $1,147.50)
• Arrangement + Exit Fees: $4,500
• Total Cost: $11,385 (7.6% of loan amount)
• Monthly Payment: $1,147.50
• Final Payment: $154,500 (principal + exit fee)
Bridge Loan Example 3: Maximum Leverage Scenario
Situation: $350,000 bridge loan at 80% combined LTV, 12 months
Bridge Loan Interest Rate: 1.0% monthly (higher rate due to high LTV)
Arrangement Fee (3%): $10,500 (higher fee for higher risk)
Gross Loan: $360,500
Interest (rolled up, 1.0% monthly): $43,260
Exit Fee (2%): $7,000
Using our bridging finance calculator:
• Total Repayment: $410,760 (Total Cost: $60,760 or 17.4%)
• Monthly Payment: $0 (rolled up interest)
Note: Higher LTV means significantly higher costs
These bridge loan examples show why it's essential to calculate bridge loan costs before committing. Use our bridge loan payment calculator to model your specific situation with different terms, rates, and payment methods.
How Much Can You Borrow on a Bridge Loan
A common question is "how much can you borrow on a bridge loan?" The answer depends on your combined loan-to-value (CLTV) ratio, which our bridge loan mortgage calculator calculates automatically. Most lenders cap bridge loans at 75-80% CLTV, meaning the total of your bridge loan plus existing mortgage cannot exceed 75-80% of the combined value of both properties (the one you're selling and the one you're buying).
Bridge Loan Borrowing Capacity Examples:
Conservative Borrower (70% CLTV):
Selling: $600,000, Buying: $700,000 (Combined: $1,300,000)
Existing Mortgage: $250,000
Max Bridge: $660,000
(70% × $1.3M - $250K)
Aggressive Borrower (80% CLTV):
Same properties and mortgage as above
Max Bridge: $790,000
(80% × $1.3M - $250K)
Understanding how much can you borrow on a bridge loan helps you plan realistically. Higher borrowing amounts mean higher costs – our bridge financing calculator shows that an 80% CLTV loan typically costs 0.25-0.50% more monthly than a 70% CLTV loan. Use our calculator to find the optimal balance between borrowing capacity and cost.
Bridging Loan for House Purchase: When to Use Bridge Financing
A bridging loan for house purchase is ideal in specific situations. Our bridge loan calculator helps you determine if bridge financing makes financial sense for your home purchase. Here are the most common scenarios where homebuyers use a bridging loan mortgage calculator to plan their strategy:
Perfect for Bridge Loans:
- • Found dream home before selling current one
- • Competing in hot markets requiring quick closings
- • Making non-contingent offers to win bidding wars
- • Sale contract in place with 2-6 month closing
- • Substantial equity in current home (50%+)
- • Strong credit and steady income
Avoid Bridge Loans When:
- • Little equity in current home (below 30%)
- • No confirmed buyer or listing yet
- • Uncertain timeline for current home sale
- • Tight cash flow can't support two payments
- • Property in slow market with long sale times
- • Credit issues or unstable employment
Use our bridge finance calculator to model different scenarios and timelines. The cost of bridging finance can be worthwhile if it helps you secure your ideal property, but it's expensive if your sale takes longer than expected.
Interest Only Bridge Loan vs Rolled-Up Interest: Which Costs Less?
One of the most important decisions when getting a bridge loan is choosing between interest-only payments or rolled-up interest. Our interest only bridge loan calculator and interest only bridging loan calculator compare both options. Understanding this choice significantly affects your total bridge loan cost.
| Feature | Interest Only (Pay Monthly) | Rolled-Up Interest |
|---|---|---|
| Monthly Payment | Interest only (e.g., $1,500/month on $200K) | $0 – No monthly payments |
| Total Interest Cost | Lower (simple interest) | Higher (compound interest) |
| Cash Flow Impact | Requires monthly payments | No monthly obligation |
| Final Repayment | Principal + exit fee | Principal + rolled interest + exit fee |
| Best For | Those with steady income, want lower total cost | Those needing flexible cash flow during transition |
Bridge Loan Cost Comparison Example ($200,000 loan, 12 months, 0.75% monthly):
Interest Only Bridge Loan:
• Monthly Payment: $1,500 (0.75% × $200,000)
• Total Interest: $18,000 (12 × $1,500)
• Total Cost with Fees: ~$24,000
Rolled-Up Interest:
• Monthly Payment: $0
• Total Interest: $18,000 (simple) to $19,200 (compound)
• Total Cost with Fees: ~$25,000-$26,200
Savings with interest-only: $1,000-$2,200, but requires $1,500 monthly payment capacity
Use our interest only bridging loan calculator to compare both options for your loan amount and term. The bridge loan interest savings from paying monthly can be significant on larger loans or longer terms.
Common Mistakes When Using a Bridge Loan Calculator
Underestimating Closing Costs
Many users forget to include realtor commissions (5-6% of sale price) and closing costs on both properties when they calculate bridge loan requirements. This leads to needing more funds than the bridge loan calculator initially showed. Always use realistic cost estimates.
Not Shopping Around for Bridge Loan Rates
Bridge loan rates today can vary by 0.25-0.50% monthly between lenders. On a $200,000 loan over 12 months, this represents $6,000-$12,000 in additional costs. Check current bridge loan rates from multiple lenders and use our bridge financing calculator to compare.
Planning for Minimum Term Only
If you tell yourself your home will sell in 6 months but get a 6-month bridge loan, you're at risk if it takes 8-9 months. Use our bridge loan payment calculator to model a longer term (12-18 months) as a buffer. Extension fees can be very expensive.
Ignoring Your Combined LTV Ratio
Not understanding how much can you borrow on a bridge loan based on CLTV can lead to loan denials or forced downsizing of your purchase. Our bridging loan mortgage calculator shows your LTV automatically – keep it under 75% for best rates and approval odds.
How to Calculate Bridge Financing: Alternative Strategies
Before committing to a bridge loan, consider these alternatives that might reduce or eliminate the need for expensive bridge financing:
1. Home Sale Contingency with Extended Closing
Negotiate a 90-120 day closing on your purchase, giving you time to sell your current home. This eliminates bridge loan cost entirely. Use our swing loan calculator to compare bridge loan costs vs. the risk of losing the property if your sale takes longer.
Best for: Buyers in less competitive markets, homes likely to sell quickly
2. HELOC Instead of Bridge Loan
A Home Equity Line of Credit on your current home typically has lower rates (7-9% vs. 9-12% for bridge loans) and more flexible terms. However, you'll carry two mortgages during the transition. Our bridge finance calculator can help compare the costs.
Best for: Buyers with significant equity, good credit, and ability to carry two payments temporarily
3. Cash-Out Refinance
Refinance your current home to extract equity at traditional mortgage rates (6-7%). This avoids bridge loan interest rates but means larger monthly payments until your home sells. Calculate if the interest savings outweigh the closing costs of a refi.
Best for: When mortgage rates are reasonable and you have significant equity
4. Rent-Back Agreement
Sell your current home but negotiate to rent it back from the buyer for 1-3 months. This gives you cash to close on your new home while staying in your current one. Eliminates bridge financing calculator concerns entirely.
Best for: Buyers who can find cooperative sellers/buyers and don't need to stay long-term
Related Bridge Loan & Mortgage Calculators
Understanding bridge loan costs is just the beginning. CalcNavigator offers comprehensive calculators to help you make informed home financing decisions:
Mortgage Calculator
Calculate traditional mortgage payments and compare with bridge loan costs to understand your total financing picture.
LTV Calculator
Calculate your loan-to-value ratio to see if you qualify for bridge financing and understand your combined LTV.
HELOC Calculator
Compare HELOC costs as an alternative to bridge loans for accessing home equity during your transition.
Home Affordability Calculator
Determine how much you can afford for your new home purchase, factoring in bridge loan costs.
Frequently Asked Questions About Bridge Loans and Bridge Financing
What are bridge loan rates today in 2025?
Bridge loan rates today typically range from 8-12% annually (0.67-1.0% monthly) in 2025. Current bridge loan rates vary based on your LTV ratio, credit score, property location, and lender. Use our bridge loan calculator to see how different bridge loan interest rates affect your total costs. Bridge loan mortgage rates are higher than traditional mortgages due to their short-term nature and higher risk.
How to calculate bridge loan costs?
To calculate bridge loan costs: 1) Determine required principal (purchase funds needed minus net equity from sale minus available cash), 2) Add arrangement fee (typically 2% of principal), 3) Calculate interest (gross loan × monthly rate × term in months), 4) Add exit fee (typically 1% of principal). Our bridge loan payment calculator and bridging finance calculator automate this entire process, showing you exactly how much does a bridge loan cost for your scenario.
How much does a bridge loan cost?
The cost of bridging finance typically ranges from 5-15% of the loan amount for a 6-12 month term. This includes arrangement fees (1-3%), interest charges (0.5-1.5% monthly), exit fees (0.5-2%), plus potential appraisal and legal costs. For example, a $200,000 bridge loan at 0.75% monthly for 12 months would cost approximately $24,000-$26,000 total. Use our bridge loan calculator to get precise costs for your situation.
What is an interest only bridge loan calculator?
An interest only bridge loan calculator (also called interest only bridging loan calculator) shows the cost difference between paying only monthly interest charges versus rolled-up interest where all costs are paid at loan maturity. Our bridge financing calculator offers both options – interest-only payments result in lower total interest costs but require monthly payments, while rolled-up interest has no monthly obligations but higher total costs due to compounding.
How much can you borrow on a bridge loan?
How much you can borrow on a bridge loan depends on your combined loan-to-value (CLTV) ratio. Most lenders limit bridge loans to 75-80% CLTV, calculated as: (existing mortgage + bridge loan) ÷ (sale property value + purchase property value). For example, with properties worth $1.3 million combined and a $250,000 existing mortgage, you could borrow up to $660,000 at 70% CLTV or $790,000 at 80% CLTV. Our bridge loan mortgage calculator shows your exact borrowing capacity.
What are bridge loan rates 2025 compared to traditional mortgages?
Bridge loan rates 2025 (8-12% annually or 0.67-1.0% monthly) are significantly higher than traditional mortgage rates (6-7% annually). Bridge loan interest rates are higher because they're short-term, higher-risk loans. However, when you calculate bridge financing for just 6-12 months, the total interest paid may be less than carrying two full mortgages. Use our bridging loan calculator to compare total costs of bridge financing versus alternative strategies.
How to calculate bridge financing for a house purchase?
Calculate bridge financing by following these steps: 1) Determine net cash from your sale (sale price - existing mortgage - commission - closing costs), 2) Calculate total purchase needs (price + closing costs - deposit paid), 3) Subtract net cash and available cash from purchase needs to find required bridge loan principal, 4) Add all fees and interest to determine total cost. Our bridging loan mortgage calculator and swing loan calculator perform all these calculations automatically, showing you how to calculate bridge loan requirements instantly.
What is the cost of bridging finance compared to other options?
The cost of bridging finance (5-15% of loan amount for 6-12 months) is higher than alternatives like HELOCs (7-9% annual) or cash-out refinancing (6-7% annual), but may be worth it for competitive purchases or when you need quick, flexible financing. Bridge loan cost also includes the "opportunity cost" of potentially losing your ideal property if you wait to sell first. Use our bridge finance calculator to compare total costs including fees, interest, and alternative financing options.
Should I use an interest only bridging loan or rolled-up interest?
Choose interest-only if you have steady income and want to minimize total bridge loan interest costs (typically 5-10% less expensive). Choose rolled-up interest if you need maximum cash flow flexibility during your property transition and don't want monthly payment obligations. Our interest only bridge loan calculator compares both options side-by-side. For most borrowers with good cash reserves, interest-only saves money, but rolled-up provides valuable breathing room during the stressful transition period.
Important Financial Disclaimer
Actual bridge loan rates, terms, fees, and approval amounts will vary based on your credit score, combined loan-to-value ratio, property values, income verification, and individual lender requirements. The calculations provided by our bridge loan calculator, bridge financing calculator, bridge loan payment calculator, bridging finance calculator, interest only bridge loan calculator, and swing loan calculator are estimates for planning purposes. Real bridge loan rates today, bridge loan mortgage rates, and current bridge loan rates depend on market conditions, lender policies, credit profiles, and official property appraisals.
Bridge financing is expensive short-term lending with significant risks. Bridge loan cost can increase dramatically if your property sale takes longer than expected. Always obtain official quotes from multiple licensed bridge loan lenders before making financing decisions. Understanding how to calculate bridge loan costs is important, but professional financial advice is essential. Consider the risks: if your sale property doesn't sell as expected, you may face default, forced sale, or significant financial losses. Bridge loan interest rates, arrangement fees, and exit fees can total 10-20% of the loan amount over 12 months.
Our bridge loan calculator tools (bridge loan mortgage calculator, bridging loan mortgage calculator, interest only bridging loan calculator, calculate bridge loan tool) provide estimates but cannot account for all costs including: possible loan extension fees if sale takes longer, appraisal fees, legal costs, title insurance, recording fees, or early repayment penalties. How much is a bridge loan and how much can you borrow on a bridge loan depend on lender-specific underwriting. Bridge loan example scenarios shown are for illustration only. Consult with mortgage professionals, real estate attorneys, and financial advisors before committing to bridge financing.
Privacy & Security: CalcNavigator does not store your personal financial information entered into our bridge loan calculator, bridge finance calculator, bridging finance calculator, bridge financing calculator, or any related tools. All calculations are performed locally in your browser for maximum security and privacy. We do not sell or share calculator data with lenders or third parties. Your bridge financing planning remains completely private and secure. No registration or personal information is required to use our bridge loan payment calculator or any other bridge loan tools.