Case 1
- How much is the bridge loan?
- 100000
- What is the annual interest rate?
- 9%
- How many months will you hold it?
- 6
- What is the origination fee?
- 1.5%
6,000.00
Open with these valuesBridge Loan Calculator
6,000.00
Result: 6,000.00A bridge loan is interest-only: you pay the interest every month and repay the whole principal in one lump sum when the old property sells. On 100000 at 9 % for six months with a 1.5 % fee, the financing costs 6000 — 4500 in interest plus a 1500 fee, on top of returning the 100000.
The numbers at a glance
Held fixed: How much is the bridge loan? 100,000.00, What is the annual interest rate? 9.000 %, How many months will you hold it? 6.
| What is the origination fee? (%) | Result |
|---|---|
| 0.000 | 4,500.00 |
| 0.500 | 5,000.00 |
| 1.000 | 5,500.00 |
| 1.500Your value | 6,000.00 |
| 2.000 | 6,500.00 |
| 2.500 | 7,000.00 |
| 3.000 | 7,500.00 |
Worked examples
Case 2
- How much is the bridge loan?
- 100000
- What is the annual interest rate?
- 9%
- How many months will you hold it?
- 12
- What is the origination fee?
- 1.5%
10,500.00
Open with these valuesCase 3
- How much is the bridge loan?
- 250000
- What is the annual interest rate?
- 10.5%
- How many months will you hold it?
- 9
- What is the origination fee?
- 2%
24,687.50
Open with these valuesHow it's calculated
cost = P × (rate ÷ 12) × months + P × fee ÷ 100
- StepEnter the bridge amount and the annual interest rate.
- StepEnter the number of months you expect to hold the loan.
- StepEnter the origination fee as a percentage of the loan.
- ResultRead the cost of the financing — on top of repaying the principal.
What this number means
A bridge loan covers the gap between buying the next property and selling the current one, and it is almost always interest-only. That single fact decides the arithmetic: because no payment reduces the balance, the monthly interest is the same every month and the total interest is a plain product rather than a schedule. On 100000 at 9 %, the monthly rate is 0.75 % and the payment is 750; six of those come to 4500. The origination fee is charged once, up front, as a percentage of the loan: 1.5 % of 100000 is 1500. Added together, the financing costs 6000. That figure is the cost of borrowing and nothing else. The 100000 itself still has to be repaid in full on the payoff date, normally out of the sale proceeds. Two inputs move the number most. Every extra month adds another full interest payment, so a sale that closes early is the single biggest saving available. The fee, by contrast, is fixed the day you sign and does not shrink if you repay early — over a six-month term it can outweigh two months of interest. The result assumes one rate for the whole term, interest paid monthly rather than rolled up, and a single fee. Real agreements add appraisal, legal, administration or exit charges, some quote points, and some defer the interest into the payoff. None of those are in the number above.
The principal is not in this number
A bridge loan is interest-only, so the balance never falls. The figure above is the cost of borrowing; the full principal comes due as a lump sum on the payoff date.
Every extra month is another full payment
Because the balance does not amortise, month twelve costs exactly as much interest as month one. Doubling the term from six months to twelve doubles the interest, from 4500 to 9000.
The fee does not shrink if you repay early
The origination fee is charged once on the whole loan, whatever happens next. At 1.5 % on a six-month term it is worth two months of interest, so compare offers on the fee and the rate together.
Ask for the whole fee schedule
This calculator models one rate and one up-front fee. Appraisal, legal, administration and exit charges, points, and rolled-up interest all sit outside it and are common in real agreements.
Commonly misread
The lump sum at the end is the principal plus all the interest.
Not on an interest-only loan: the interest has already been paid monthly. Only the principal falls due at the end.
A short term makes the rate less important.
The rate is the whole monthly payment here, because nothing is being repaid. At 9 % on 100000 that is 750 a month, every month.
A 1.5 % fee is a rounding error next to a 9 % rate.
Over six months the 9 % rate costs 4500 and the 1.5 % fee costs 1500. The fee is a quarter of the total cost.
Reference table
| Loan, rate, months, fee | Interest | Fee | Total cost |
|---|---|---|---|
| 100000, 9, 6, 1.5 | 4500.00 | 1500.00 | 6000.00 |
| 100000, 9, 6, 0 | 4500.00 | 0.00 | 4500.00 |
| 100000, 0, 6, 1.5 | 0.00 | 1500.00 | 1500.00 |
| 100000, 9, 12, 0 | 9000.00 | 0.00 | 9000.00 |
| 100000, 9, 12, 1.5 | 9000.00 | 1500.00 | 10500.00 |
| 250000, 10.5, 9, 2 | 19687.50 | 5000.00 | 24687.50 |
Questions
How is bridge loan interest calculated?
Most bridge loans are interest-only, so the monthly payment is the balance times the monthly rate — the annual rate divided by twelve. On 100000 at 9 % that is 100000 × 0.75 % = 750 a month. Over six months that is 4500 in interest, with the principal repaid in one lump sum at the end.
What does this calculator include?
The interest over the term you enter plus a single up-front origination fee, expressed as a percentage of the loan. It does not include the principal, which is repaid separately, and it does not model appraisal, legal, administration or exit fees.
Why does the balance never go down?
Because the scheduled payments cover only interest. The Consumer Financial Protection Bureau describes this structure plainly: the amount owed does not go down with each payment. The balance is settled in a single payoff at the end of the term.
How much does an extra month cost?
One more full interest payment — the same amount as every other month, because nothing has been repaid. On the default figures that is 750, so twelve months cost 9000 in interest instead of 4500.
Are bridge loans expensive?
They cost more than a standard mortgage, because the term is short and the lender carries more risk. Rates run higher and an origination fee of roughly 1 % to 3 % is common on top. What you actually pay depends mostly on the rate and on how many months you need the money.
Is this financial advice?
No. It is a planning estimate built on one rate, one fee and interest paid monthly. Confirm the exact terms and the full fee schedule with your lender before committing.
Sources and last check
Information, not financial advice.