Bridge Loan Calculator

With Dual Loan Payment Schedule

Bridge loans, also known as gap financing or interim financing, are short-term loans designed to help borrowers bridge the gap between two transactions, typically the purchase of a new property and the sale of an existing one. Bridge loans are usually used to finance the down payment on a new property while the borrower waits for their current property to sell.

Bridge Loan Calculator
Bridge Loan Calculator

A bridge loan helps you buy one property while financing another. You can calculate if a bridge loan is needed and its payment amount. Also:

  • Create a payment schedule showing payments for both loans
  • The equity in one property is used as collateral for the bridge loan
  • The bridge loan is paid-in-full with the proceeds from the sale of the first property.

To use the bridge loan calculator, the user will need to provide the following inputs:

  • Purchase price - The total cost of the new property.
  • Cash available - The amount of cash the borrower has available to put towards the down payment.
  • First mortgage amount - The amount of the first (or primary long-term) mortgage on the new property that the borrower plans to take out.
  • First loan's interest rate - The interest rate on the first mortgage.
  • First loan's term - The length of the first mortgage, typically 15 or 30 years.
  • Bridge loan interest rate - The interest rate on the interest-only bridge loan.
  • Anticipated bridge loan term - The length of the bridge loan, typically 6 to 12 months.

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Once the user has provided these inputs, the bridge loan calculator will provide the following outputs:

  • Bridge loan amount - The amount of the bridge loan needed to finance the down payment.
  • Monthly interest-only payment - If the bridge loan requires the debtor to pay only the interest due, this output will display the monthly interest-only payment amount.

Click on the "Help" button for more details and an example.

Loan Calculator
Loan Calculator

This loan calculator creates printable loan schedules with dates.

  • Calculate unknown payment, term, interest rate, or loan amounts
  • Saves to Excel & Word files.
  • Print or export colorful charts
  • Supports extra payments too!

Bridge loans may be risky

Bridge loans can be risky because they often come with high-interest rates and fees, and they are typically secured by the borrower's current property. If the borrower is unable to sell their property quickly, they may be unable to pay back the bridge loan, which could lead to default and potentially losing their current property. Additionally, the borrower may be subject to penalties if they are unable to pay back the bridge loan on time.

To minimize the risks associated with bridge loans, borrowers should carefully consider their financial situation and ensure that they have a solid plan for selling their current property before taking out a bridge loan. They should also shop around for the best rates and terms and avoid lenders who charge excessive fees.

51 Comments on “Bridge Loan Calculator”

Join the conversation. Tell me what you think.
  • currently in attorney. Selling price of current home is $480,000. No mortgage. Need $180,000 for purchase of new home. Bridge loan needed for 2 months to close on new home before closing on current home. How do I fill out the chart.

    • I certainly see that I need to add more documentation for this calculator.

      The $180,000 for the new home, is that the total purchase price? Or, what’s the cost of the new home, and how much will the new mortgage be (that the value for 1st mortgage)? Do you have any cash-on-hand?

      The point of this calculator is to see if you need a bridge loan, and if you do, calculate a total payment of the new mortgage and the bridge loan.

    • You already understand that you’ll need a bridge loan. If you are not taking out a mortgage on the new home, and the bridge loan is the only loan, then this calculator is not what you need (it is for when there are two loans on the new property).

      Use this loan calculator to calculate the details and create a schedule for the bridge loan.

  • What is the average monthly interest rate for a mortgage bridge loan through a b or c lender in Canada?

  • Zenon Frencel says:

    My current house is value 850000 to 900000.Iheve no mortgage.
    New house cost 560000.I need bridge mortgage for 3 to 6 months.
    I paid downpayment 50000.Can i get bridge mortgage?
    How match this mortgage will cost

    • The calculator helps you to determine that. However, I don’t know what it will cost because I don’t know the interest rates in your area.

      Do you have a question about the calculator?

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