Bridge Loan Calculator: Short-Term Loan Payment & Total Interest
Work out the monthly payment and total interest on a bridge loan — the short-term financing that lets a buyer close on a new home before the old one sells.
Adjust the inputs and select Calculate for a full breakdown.
Year-by-year amortization schedule
Compare Common Scenarios
How the numbers shift across typical situations for this calculator:
| Scenario | Monthly payment | Total interest | Total of payments |
|---|---|---|---|
| $300k · 10% · 1-year | $26,374.77 | $16,497.19 | $316,497.19 |
| $150k · 11% · 1-year | $13,257.25 | $9,086.99 | $159,086.99 |
| $500k · 9% · 2-year | $22,842.37 | $48,216.91 | $548,216.91 |
| $80k · 12% · 1-year | $7,107.90 | $5,294.84 | $85,294.84 |
How This Calculator Works
Enter the bridge loan amount, the APR, and the term. The calculator turns the rate into one constant monthly payment using the amortization formula and shows total interest. Many real bridge loans run interest-only with a balloon at payoff — pick the structure that matches your contract.
The Formula
Fixed-Rate Amortization
P = loan amount, r = monthly rate (APR ÷ 12), n = number of monthly payments
Worked Example
A $300,000 bridge loan at 10% APR over 1 year produces a monthly payment of about $26,375 — large, because the loan repays the full principal inside a year. Total interest comes to roughly $16,500 across the term.
Key Insight
Bridge loans cost more than conventional mortgages because they are fast, short-term, and secured against transitional equity. The breakeven question is rarely 'what is the rate' — it is 'is the new home worth losing if the timing slips by a month'. Underwrite for the timing risk, then check the rate.
Frequently Asked Questions
What is a bridge loan?
A short-term loan that lets a buyer close on a new home before the old one sells, using equity in the existing property as collateral. Terms typically run six months to two years.
Why are bridge loan rates higher?
They are short, fast, and carry timing risk for the lender. Bridge loan APRs commonly price 2 to 4 points above prime, plus origination fees of 1% to 3%.
Is a bridge loan interest-only?
Often yes. Many bridge loans pay interest monthly with a balloon for the full principal when the old home sells. Use a calculator matched to the structure your lender offers.
Are there alternatives?
Yes — HELOCs, sale contingencies in the purchase offer, and 'buy before you sell' programs from specialty fintechs. Each has different cost and risk trade-offs.
What if the old home does not sell in time?
Bridge loans often allow extensions for a fee, or convert to longer-term financing. The worst case is selling under pressure — which is why bridge loans suit confident sellers, not desperate ones.
Related Calculators
Data Sources & Benchmarks
This calculator draws on 2 independent, dated sources.
Methodology & Review
Payments use the standard fixed-rate amortization formula. The calculator assumes a fixed APR over the bridge term and amortizes the loan in full; many real-world bridge loans are interest-only with a balloon at payoff — choose a calculator that fits your loan structure.
Written by Ugo Candido · Last updated May 17, 2026.