Bridge Loan Calculator

Estimate the monthly interest, total interest, fees and final payoff on a short-term bridge loan. Enter the amount, rate and term, then press Calculate.

Written by TopicDrill Editorial Team·Updated June 2026

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How the bridge loan calculator works

A bridge loan is designed to be short and simple. Because it is usually interest-only, your monthly payment is just the loan balance multiplied by the monthly rate, and the full principal comes due at the end of the term. This calculator adds any origination fee so you can see the real cost of bridging the gap.

The key figures are the monthly interest you carry while the loan is open, the total interest over the term and the lump sum payoff. Together they tell you how much the convenience of bridging actually costs.

A quick example

Borrow $250,000 at 9.5% for 12 months with a 2% fee. The monthly interest is about $1,979, total interest over the year is roughly $23,750, and the fee adds $5,000. The cost to borrow is near $28,750, with the $250,000 principal due at the end.

Things to keep in mind

Bridge loans assume your old property sells or your permanent financing closes on time. Have a clear exit plan, and budget for an extension just in case. For guidance on home financing, the Consumer Financial Protection Bureau is a reliable source. Compare options with our other free calculators.

Frequently asked questions

What is a bridge loan?

A bridge loan is short-term financing that covers the gap between two transactions, most often buying a new home before selling your current one. It is usually interest-only and is repaid in full once the longer-term financing or sale closes.

How is bridge loan interest calculated?

Most bridge loans are interest-only, so the monthly payment is the loan amount times the monthly interest rate, with no principal paid down. The full principal is repaid as a lump sum at the end of the term, which is why monthly payments stay flat.

Why are bridge loans more expensive?

Because they are short-term and higher risk for the lender, bridge loans carry higher interest rates than standard mortgages and often add an origination fee. The total cost is small in dollars only because the term is brief, so paying it off quickly matters.

What happens at the end of the term?

You repay the entire principal in one payment, usually from the sale of your old property or by refinancing into a permanent loan. If neither happens in time, you may need an extension, which can add cost, so plan the exit before you borrow.

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