01
Enter Project Costs
Add the purchase price, renovation budget and requested bridge loan amount.
Real Estate and Lending
Bridge Loan Calculator
Estimate short-term bridge financing payments, interest, points, lender fees, net proceeds, payoff balance, LTV, loan-to-cost ratio and expected equity at exit.
Bridge financing analysis
LTV and LTC estimates
Exit payoff planning
Bridge Financing Details
Enter the acquisition, renovation, loan, fee and expected exit information.
Bridge Loan Estimate
Review monthly debt service, payoff balance, fees, leverage and exit equity.
Estimated monthly payment
$3,833.33
Monthly interest-only payment
Payoff at maturity
$404,000.00
Principal balance plus exit fee
Estimated exit equity
$254,000.00
After payoff and selling costs
Amount financed
$400,000.00
Total interest
$46,000.00
Origination fee
$8,000.00
Exit fee
$4,000.00
Total lender fees
$15,500.00
Estimated cash required
$186,500.00
Net loan proceeds
$388,500.00
Total borrowing cost
$61,500.00
Loan-to-value ratio
80.00%
Loan-to-cost ratio
69.57%
Payoff-to-exit value
57.71%
Selling costs
$42,000.00
Monthly coverage ratio
1.43
Financing cost percentage
15.38%
Interest per day
$126.03
Repayment structure
Interest-only
The expected exit value appears to cover the
projected payoff and estimated selling costs.
Bridge loans generally require a clear exit strategy.
A sale or refinance may be affected by market value,
construction delays, future rates and lender approval.
Short-Term Financing
What Is a Bridge Loan?
Understand how short-term financing can bridge the gap between an immediate purchase and a future sale or refinance.
A bridge loan is temporary financing used when a borrower needs capital before permanent financing or sale proceeds are available. These loans are commonly used for real estate acquisitions, renovations, investment property transitions and time-sensitive transactions.
Bridge loans often have shorter terms and higher interest rates than conventional long-term mortgages. Payments may be interest-only, fully accrued until maturity or calculated using a longer amortization schedule.
The borrower normally needs a defined exit strategy, such as selling the property, completing renovations, stabilising rental income or refinancing into permanent financing.
How It Works
How to Use the Bridge Loan Calculator
Estimate your short-term financing and exit position in four straightforward steps.
02
Set Loan Terms
Enter the interest rate, term and preferred payment structure.
03
Add Fees and Exit Value
Include origination points, lender fees, exit fee and expected sale or refinance value.
04
Review the Exit Analysis
Compare the payoff balance, borrowing cost, leverage, cash requirement and expected exit equity.
Bridge Loan Metrics
Important Bridge Financing Measurements
These figures help explain leverage, project exposure, monthly obligations and the strength of the exit strategy.
Loan-to-Value Ratio
LTV compares the bridge loan amount with the current purchase price or property value.
Loan-to-Cost Ratio
LTC compares the loan with the combined acquisition and renovation budget.
Exit Payoff
The estimated amount that must be repaid when the property is sold or refinanced.
Expected Exit Equity
The estimated exit value remaining after the loan payoff and entered selling costs.
Repayment Preview
Bridge Loan Monthly Schedule
Review the estimated monthly payment, interest, principal and outstanding payoff balance.
| Month | Payment | Principal | Interest | Outstanding Balance |
|---|
Frequently Asked Questions
Bridge Loan Calculator FAQs
Helpful answers about bridge payments, points, repayment structures, leverage and exit strategies.
The calculation depends on the selected payment
structure. An interest-only loan requires monthly
interest payments, an accrued-interest loan adds
interest to the balance, and an amortizing loan includes
principal and interest.
Origination points are lender charges calculated as a
percentage of the loan amount. One point normally equals
one percent of the entered bridge loan.
With an interest-only structure, the borrower pays the
monthly interest charge while the original principal
generally remains due when the loan matures.
Accrued interest means the borrower makes no regular
monthly payment in this estimate. Interest is added to
the outstanding balance and repaid at exit.
LTV compares the loan amount with the property purchase
price or current value. LTC compares the loan with the
total acquisition and renovation cost.
The payoff balance includes the outstanding principal,
any accrued interest included in the balance and the
entered exit fee. Actual lender payoff statements may
include additional charges.
Some lenders may allow eligible upfront fees to be added
to the loan. The calculator lets you compare financing
the origination and other upfront lender fees with
paying them at closing.
No. The result is an educational estimate. Approval
depends on lender underwriting, credit, experience,
property value, project feasibility, liquidity,
collateral and the proposed exit strategy.
Important: This bridge loan calculator is
provided for general informational and planning purposes
only. It does not constitute a financing offer, approval,
appraisal, financial advice, tax advice, accounting advice
or legal advice. Actual lender calculations may differ.