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Bridge Loan Calculator
Model a bridge loan used to buy a new home before the current home sells. Enter your current-home equity, the lender's combined LTV cap, and the short-term rate — then see the bridge amount, monthly payment, and balloon payoff expected from the sale.
Purchase and current home
Most bridge lenders cap total debt at 75%-85% of the current home value.
Bridge loan terms
Most bridge loans are 6 to 12 months.
Bridge loan amount
$165,000
Based on 80% combined LTV cap
Monthly payment
$1,581
interest-only payments
Balloon payoff at term
$165,000
expected from sale proceeds
All-in cost of the bridge
$22,650
≈ 13.7% annualized
Equity and cost breakdown
The bridge loan covers the gap between closings. Plan to repay from the net sale of the current home — the balloon amount shown assumes the loan is still open at term end.
Max combined debt allowed
$380,000
current home value × LTV cap
Equity available for bridge
$165,000
after existing mortgage
Origination fee
$2,475
Total closing fees
$3,675
Net cash available at closing
$161,325
Total interest over term
$18,975
Bridge loans are designed for short gaps between closings and are usually secured by the current home. The balloon is repaid from the net sale proceeds — pressure test your sale price and timeline before committing.
EveryCalc calculators are designed for fast, practical estimates with transparent inputs and no required account. We use plain formulas, visible assumptions, and related tools so visitors can check the result from more than one angle.
Results are informational only. For financial, tax, legal, medical, construction, or other high-impact decisions, verify the output against primary sources or a qualified professional.
Learn more about our review process on the EveryCalc methodology page.
How this calculator works
What this page estimates
This Bridge Loan Calculator is built to give a quick, browser-based estimate for bridge loan. Model a bridge loan used to buy a new home before the current home sells. Enter your current-home equity, the lender's combined LTV cap, and the short-term rate — then see the bridge amount, monthly payment, and balloon payoff expected from the sale. The inputs stay on the page during normal use, and the result should be treated as an estimate for planning, comparison, or education rather than professional advice.
Calculation approach
The calculator applies the standard relationship implied by the inputs, then formats the answer so it can be checked and reused. For finance tools, the most important step is using consistent units, rates, time periods, and assumptions before comparing the result with another calculator or outside quote.
Example workflow
For example, start with a realistic value you already know, change one input at a time, and watch how the answer moves. That makes it easier to tell whether the result is being driven by the main amount, the rate, the time period, or a unit conversion.
Practical checks
- Use current, real-world numbers when the result affects money, health, tax, or legal decisions.
- Run a low, base, and high case when the inputs are estimates.
- Check the related calculators below when the next decision depends on a different assumption.
How to interpret the bridge loan result
Best use
Use the result as a planning number for comparing payments, rates, returns, tax reserves, or cash-flow choices before you request a quote or make a commitment.
Cross-check
Compare the answer with the contract, lender estimate, tax form, brokerage statement, payroll record, or invoice that will control the real-world outcome.
Watch for
Do not rely on a single optimistic rate, return, or fee assumption. Money pages work best when you run low, base, and high cases and keep professional advice separate from the estimate.
This page belongs to the Finance calculator library, so the answer should be read in the context of the decision you are modeling rather than as a universal rule.
Before relying on this bridge loan estimate
Most calculator mistakes come from the inputs, not the arithmetic. Use this short audit before you reuse the answer in a spreadsheet, quote, application, or important conversation.
Confirm source numbers
Match balances, rates, fees, taxes, income, and payment dates against the lender quote, payroll record, tax form, statement, invoice, or contract.
Separate cash flow from total cost
A lower monthly payment can still cost more over time if fees, interest, taxes, or a longer term are hidden in the structure.
Run conservative cases
Test at least one higher-cost or lower-return case before using the output for a purchase, refinance, investment, loan, or tax decision.
Rerun this page when the rate, price, term, fee, tax rule, income, expense, or expected holding period changes.
How to Use
- Enter the price of the new home plus the current home's market value and existing mortgage balance.
- Set the lender's max combined loan-to-value — most bridge programs cap combined debt at 75% to 85% of the current home value.
- Enter the bridge rate and term. Short-term rates run well above conventional mortgages, and 6 to 12 months is the typical term.
- Choose the payment structure: interest-only, interest accrued until payoff, or a fully amortized payment if the lender requires it.
- Add origination and other closing fees so the all-in cost and the net cash available at closing are both reflected.
Frequently Asked Questions
What is a bridge loan?
A bridge loan is a short-term loan (typically 6 to 12 months) secured by your current home that lets you close on a new home before the existing one sells. When the current home sells, the bridge is paid off from net proceeds.
How much can I borrow with a bridge loan?
Most lenders cap combined debt across both homes at 75% to 85% of the current home value. The bridge amount is the difference between that combined LTV cap and your existing mortgage balance.
Is a bridge loan better than a HELOC?
A HELOC on the current home is usually cheaper but must be opened before the home is listed — many lenders won't fund a HELOC on a listed property. Bridge loans are more expensive but have no listing restriction and are underwritten with the short payoff in mind.
What happens if my current home does not sell in time?
Most bridge loans have an extension option for a fee, or can be refinanced into a longer-term product secured by the new home. If neither works and the balloon comes due, lenders can foreclose on the current home. Price conservatively and confirm an extension policy up front.
Are bridge loan fees tax deductible?
Interest on a loan secured by a primary or second residence may be deductible subject to the current mortgage interest limits. Origination fees are generally capitalized into the cost of the financing. Consult a tax professional.
Related Calculators
HELOC Calculator
Compare a HELOC on the current home versus a bridge loan for equity access.
Cash-Out Refinance Calculator
Evaluate a cash-out refinance as an alternative source of the down payment.
Home Equity Loan Calculator
Size a fixed-rate home equity loan against the same equity the bridge is tapping.
Seller Net Sheet Calculator
Confirm the sale side will net enough to pay off both the bridge and the existing loan.
Mortgage Calculator
Run the permanent financing on the new home that will replace the bridge.
Closing Cost Calculator
Layer bridge origination fees into buyer-side cash to close.
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