What will a bridge loan cost?
Type the value of the home you are selling, what you owe on it, your lender’s loan-to-value limit, and the bridge loan amount, rate, fee and months. The bridge loan calculator shows the most you can borrow, the monthly interest-only payment, and what the loan costs until the home sells.
- Monthly interest-only payment
- $1,125.00
A $150,000.00 bridge loan costs $1,125.00 a month in interest and $9,750.00 in all until the home sells.
- Most you can borrow
- $200,000.00
- Origination fee
- $3,000.00
- Interest until the sale
- $6,750.00
- Total cost of the bridge loan
- $9,750.00
- Cash you receive
- $147,000.00
- Repaid from the sale
- $150,000.00
- Combined loan-to-value
- 70%
Monthly interest-only payment: $1,125.00. A $150,000.00 bridge loan costs $1,125.00 a month in interest and $9,750.00 in all until the home sells.
What does the bridge loan cost?
The results are estimates for information only. They are not financial, tax, or legal advice. Check the numbers with your lender or a qualified professional before you decide. Terms of use
How to calculate
Works out how much you can borrow on a bridge loan against the home you are selling, the monthly interest-only payment, the fee, and the total cost until the home sells.
Example with the default inputs (Value of the home you are selling $500,000.00, Mortgage owed on it $200,000.00, Lender’s loan-to-value limit 80%, Bridge loan amount $150,000.00, Interest rate 9%, Months until the home sells 6, Origination fee 2%): A $150,000.00 bridge loan costs $1,125.00 a month in interest and $9,750.00 in all until the home sells.
Method: Most you can borrow = value × LTV limit − mortgage owed; monthly payment = amount × rate ÷ 12; fee = amount × fee %; interest = payment × months; cost = fee + interest. All in exact decimals.
- Interest only, paid monthly at the yearly rate ÷ 12; the whole amount is repaid when the home sells.
- The fee is paid at closing out of the loan. Other closing costs, appraisal fees and the payments on your current mortgage are not included.
- Some bridge loans add the interest to the balance instead of charging it monthly; ask your lender.
- Type the rate and limit your lender quotes; no live rates.
Worked examples
Each example is checked against the calculator on every build.
- Value of the home you are selling $500,000.00, Mortgage owed on it $200,000.00, Lender’s loan-to-value limit 80%, Bridge loan amount $150,000.00, Interest rate 9%, Months until the home sells 6, Origination fee 2% gives Most you can borrow $200,000.00, Monthly interest-only payment $1,125.00, Origination fee $3,000.00, Interest until the sale $6,750.00, Total cost of the bridge loan $9,750.00, Cash you receive $147,000.00, Combined loan-to-value 70%.Source: Consumer Financial Protection Bureau, Regulation Z, 12 CFR 1026.43(a)(3)(ii): a temporary or "bridge" loan with a term of 12 months or less, such as a loan to buy a new dwelling where the consumer plans to sell a current dwelling within 12 months, https://www.consumerfinance.gov/rules-policy/regulations/1026/43/ (retrieved 2026-10-05); Consumer Financial Protection Bureau, What is a home equity loan? (equity is the amount the property is worth minus any existing mortgage), https://www.consumerfinance.gov/ask-cfpb/what-is-a-home-equity-loan-en-106/ (retrieved 2026-10-05)
- Value of the home you are selling $750,000.00, Mortgage owed on it $350,000.00, Lender’s loan-to-value limit 75%, Bridge loan amount $200,000.00, Interest rate 10.5%, Months until the home sells 12, Origination fee 1.5% gives Most you can borrow $212,500.00, Monthly interest-only payment $1,750.00, Origination fee $3,000.00, Interest until the sale $21,000.00, Total cost of the bridge loan $24,000.00.Source: Consumer Financial Protection Bureau, Regulation Z, 12 CFR 1026.43(a)(3)(ii): a temporary or "bridge" loan with a term of 12 months or less, such as a loan to buy a new dwelling where the consumer plans to sell a current dwelling within 12 months, https://www.consumerfinance.gov/rules-policy/regulations/1026/43/ (retrieved 2026-10-05)
- Value of the home you are selling $400,000.00, Mortgage owed on it $0.00, Lender’s loan-to-value limit 80%, Bridge loan amount $100,000.00, Interest rate 0%, Months until the home sells 3, Origination fee 0% gives Monthly interest-only payment $0.00, Total cost of the bridge loan $0.00, Repaid from the sale $100,000.00, Combined loan-to-value 25%.
How it works
With the home value V, the mortgage owed M, the lender’s loan-to-value limit c%, a bridge loan A at a yearly rate R% for m months, and a fee f%, all in exact decimals:
- Most you can borrow = V × c ÷ 100 − M. A loan above it, or a limit already used up by the mortgage, gives no answer.
- Monthly interest-only payment = A × R ÷ 1200.
- Origination fee = A × f ÷ 100. Cash you receive = A − fee.
- Interest until the sale = monthly payment × m. Total cost = fee + interest.
- Repaid from the sale = A. Combined loan-to-value = (M + A) ÷ V × 100.
Rules
- Home value $1,000 to $1,000,000,000; limit 1% to 100%; rate 0% to 40%; 1 to 36 months; fee 0% to 10%.
Worked examples by hand
The default: $500,000 home, $200,000 owed, 80% limit, $150,000 at 9% for 6 months, 2% fee. Most you can borrow = 400,000 − 200,000 = $200,000. Payment = 150,000 × 9 ÷ 1200 = $1,125. Fee $3,000; interest 6 × 1,125 = $6,750; total $9,750. Combined loan-to-value (200,000 + 150,000) ÷ 500,000 = 70%.
$750,000 home, $350,000 owed, 75% limit, $200,000 at 10.5% for 12 months, 1.5% fee. Most you can borrow = 562,500 − 350,000 = $212,500. Payment $1,750; fee $3,000; interest $21,000; total $24,000.
$100,000 at 0% with no fee on a $400,000 home owned outright. No cost; combined loan-to-value 25%.
Other questions people ask
What is a bridge loan?
A short loan, often 12 months or less, secured by the home you are selling, so you can buy the next home before the sale closes. It is repaid from the sale. Regulation Z describes it as a temporary loan to buy a new home when you plan to sell your current one within 12 months.
How much can I borrow on a bridge loan?
Lenders cap the mortgage and the bridge loan together at a percent of your home’s value. At an 80% limit, a $500,000 home with $200,000 owed allows 500,000 × 0.80 − 200,000 = $200,000.
How is the monthly payment worked out?
Most bridge loans charge interest only: amount × yearly rate ÷ 12. $150,000 at 9% is $1,125 a month. The whole amount is repaid when the home sells.
What does a bridge loan cost?
The fee plus the interest until the sale. With a 2% fee and 6 months at 9% on $150,000: $3,000 + 6 × $1,125 = $9,750.
What if my home takes longer to sell?
You pay interest for longer, and the loan may come due before the sale. Try more months to see the cost, and ask the lender what happens at the end of the term.
Does the calculator include my current mortgage payment?
No. Until the sale you may pay your current mortgage, the new mortgage and the bridge loan. Add them up to see your monthly costs.