Bridge To Perm Spread Calculator

Bridge costs more than perm. This calculator quantifies.

Bridge rate %

Perm rate %

Loan balance

Bridge months

Cost differential

$840,000

Bridge interest

$2,640,000

Perm-equivalent interest

$1,800,000

How the math works

Bridge interest = loan × bridge rate × years. Perm-equivalent same. Differential = bridge − perm.

$12M bridge at 11% vs perm at 7.5% over 24 months: $2.64M − $1.8M = $840k differential. Bridge worth the $840k if value-add/timing creates $1M+ of additional value.

How to Use

Enter bridge rate %.
Enter perm rate %.
Enter loan balance.
Enter bridge months.
Read total rate cost differential.

Frequently Asked Questions

Typical spread?

Bridge: SOFR + 400-700 bps. Perm: SOFR + 200-350 bps. Differential: 200-400 bps. Plus bridge points (1-2%) and exit fee (0.5-1%). Full cost delta vs perm: 400-600 bps effective on 18-24 month bridge.

Why bridge?

Lease-up (perm requires stabilization). Renovation (perm won't fund value-add). Timing (closing needs fast bridge; perm underwriting slow). Rate environment (perm rates unfavorable; bridge to later window). Each reason has expected cost.

Breakeven?

Bridge worthwhile when: (a) avoiding missed opportunity, (b) future rate/cap rate improvement, (c) stabilization uplift creates more value than bridge cost. Model scenarios. Over-cost bridge: kills value-add economics.

How often should I rerun this?

Rerun this calculator whenever inputs change materially — new rent roll data, rate moves, loan balance updates, or quarterly operating data. For active deals, monthly refresh is typical. For stabilized assets under monitoring, quarterly is fine. Treat the output as a decision tool, not a one-time answer — market conditions evolve and so should your analysis.