Bridge Loan Cost Calculator

About this calculator

A bridge loan is a short-term (typically 6–12 month) loan that lets a borrower — often a homebuyer purchasing a new property before their current one sells, or a business covering a financing gap — access capital quickly. Because the lender is taking on short-duration risk, bridge loans carry meaningfully higher interest rates than conventional mortgages, plus an upfront origination fee (commonly 1–3 points, i.e. 1–3% of the loan amount).

Total cost is straightforward: interest accrued over the term (principal × rate × term/12) plus the origination fee. Borrowers compare this all-in cost against the alternative — a contingent-sale offer, a home-equity line, or simply waiting to sell first — since a bridge loan's convenience of speed and flexibility comes at a real premium.