Bridge Loan Cost Calculator

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Term-sheet date:

Records which quote the scenario uses; it does not change the whole-month math.

Bridge amount:

Gross principal from the term sheet, not anticipated sale proceeds or equity.

Annual interest rate:

The model divides this rate by 12. Use it only when that matches the lender's stated basis.

Interest payment timing:

Retained, compounded, or grossed-up structures need lender-specific math.

Stated term:

months

Whole monthly interest periods before the balloon is due.

Planned sale or refinance exit:

Month

Use a conservative whole month on or before stated maturity.

Origination fee:

Use the percentage from the same dated term sheet.

Other upfront fees:

Known lender, appraisal, valuation, legal, title, or filing charges when not duplicated.

Exit fee:

Use zero when the term sheet has no exit fee.

First delayed-exit check:

Plan +months

Use a shorter delay than the second check.

Second delayed-exit check:

Plan +months

Must be longer than the first delay.

Currency display:

The default shows cents. This setting changes presentation only.

Cost breakdown

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Calculation method:

Planned financing cost excludes repayment of the unchanged balloon principal.

cost = principal × annual rate ÷ 12 × months + entered fees

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Planning estimate only. Verify rate basis, fee treatment, maturity, payoff, extension, and prepayment terms with the lender and qualified advisers.

The chart renderer is unavailable. The same scenarios remain available in the ledger.

Scenario	Financing cost	Extra vs plan	Exit payoff	Before-exit cash	Status	Copy
{{ row.label }} · {{ row.monthLabel }}	{{ row.cost }}	{{ row.incremental }}	{{ row.payoff }}	{{ row.preExitCash }}	{{ row.status }}

A bridge loan covers a short gap between paying for a property and receiving money from a sale, refinance, or longer-term loan. The appeal is speed and timing flexibility. The tradeoff is a short maturity, recurring interest, lender fees, and a large payoff that depends on the exit happening as planned.

The quoted interest rate is only one part of the cost. Origination charges, appraisal or legal expenses, and an exit fee can make a six-month loan materially more expensive than the rate alone suggests. An annual percentage rate may help compare some regulated offers, but this estimate is a cash-cost model built from the dated term sheet rather than an APR calculation.

Bridge loan cash timing compared with total cost
Amount	When it is usually paid in this model	Why it matters
Origination and other upfront fees	Before the exit	They increase cash needed even when the loan ends early.
Monthly-paid interest	During the bridge period	It raises carrying cash but not the final payoff in this model.
Deferred simple interest	At the exit	It reduces monthly cash use but increases the balloon payoff.
Principal and exit fee	At payoff	The full principal remains due because the balance does not amortize.

Exit timing is the largest uncertainty in many bridge plans. Each extra whole month adds another month of simple interest until the stated maturity. Falling property value, a delayed sale, or a failed refinance can also remove the expected source of repayment, so a cost estimate cannot prove that the exit is available.

Use the signed or current quoted terms, not a remembered rate or an advertisement. Compounded, retained, grossed-up, variable-rate, daily-accrual, extension, default, and prepayment provisions need lender-specific math and can produce a different result.

How to Use This Tool:

Transcribe one dated term sheet, then test a planned exit and two longer delays against the same terms.

Enter the Term-sheet date, Bridge amount, annual rate, and stated term exactly as quoted. The date identifies the scenario but does not change the whole-month calculation.
Choose whether interest is paid monthly or deferred to exit. Use deferred only when the lender describes simple, noncompounding deferral.
Enter the planned whole-month exit on or before maturity, then add two delay checks with the second delay longer than the first.
Add the origination percentage, known upfront charges, and exit-fee percentage without duplicating the same charge in two fields.
Compare the planned exit with the delay and maturity rows. If a delayed scenario lands after maturity, obtain extension terms instead of extending this estimate.

Interpreting Results:

Planned exit cost is interest through the chosen exit month plus all entered fees. It is the clearest comparison number for scenarios using the same principal and fee basis. Exit payoff answers a different question: how much is due at the balloon date under the selected interest timing.

Cash before exit includes upfront fees and, for monthly-paid interest, the interest paid during the term.
Incremental cost shows how much a delayed scenario adds above the planned exit cost.
Maturity cushion is stated term minus planned exit month. A small cushion leaves little room for transaction delays.
An after-maturity row deliberately withholds a dollar result because extension rates, fees, and remedies are unknown.

Technical Details:

The model is a nonamortizing, interest-only bridge with a fixed principal and one simple monthly rate. Dividing the annual rate by 12 assumes equal whole-month periods. It does not count calendar days or apply a 360-day, 365-day, or actual-day convention.

Formula Core:

Interest and percentage fees are calculated from the original bridge amount. The principal does not decline before the balloon payoff.

\begin{array}{lll} I_{month} & = & P \times \frac{r}{12} \\ I_{exit} & = & I_{month} \times n \\ Fees & = & (P \times f_{orig}) + F_{other} + (P \times f_{exit}) \\ TotalCost & = & I_{exit} + Fees \end{array}

Bridge loan formula variables
Symbol	Meaning	Unit
P	Bridge amount and balloon principal	USD
r	Annual interest rate expressed as a decimal	per year
n	Whole months through the selected exit	months
f_orig, f_exit	Origination and exit fee percentages expressed as decimals	ratio
F_other	Other known upfront charges	USD

Payment-Timing Rule Core:

Bridge loan payment timing rules
Timing	Cash before exit	Exit payoff
Interest paid monthly	Origination fee + other upfront fees + interest through exit	Principal + exit fee
Deferred simple interest	Origination fee + other upfront fees	Principal + exit fee + interest through exit

Dollar inputs and rates accept no more than two decimal places. Principal, monthly interest, and percentage fees are converted to cents and rounded to the nearest cent before month totals are built, so the displayed scenario sums remain internally consistent.

Worked Examples:

Six-month exit with monthly interest

A $300,000 bridge at 10.5% produces $2,625 of monthly interest. Six months cost $15,750 in interest. With a 2% origination fee, $3,500 of other upfront fees, and a 1% exit fee, total fees are $12,500 and planned cost is $28,250. Monthly payment timing puts $25,250 of cash before exit and leaves a $303,000 payoff.

Same cost, different cash timing

Deferring simple interest does not reduce total interest in this model. It moves that interest into the balloon payoff. This distinction matters when the exit proceeds can cover the payoff but monthly liquidity is tight.

Limitations:

This estimate is educational and is not lending, legal, tax, or financial advice. Review the actual note and payoff instructions before committing funds.

No principal amortization, compounding, daily accrual, variable rate, retained interest, gross-up, extension pricing, default interest, or prepayment rule is modeled.
Taxes, insurance, opportunity cost, sale proceeds, existing liens, and the availability of a refinance are outside the result.
The result is not an APR disclosure and should not be used as a substitute for required lender documents.

References:

Interest rate and APR differences, Consumer Financial Protection Bureau.
What is a balloon payment?, Consumer Financial Protection Bureau, reviewed August 2026.
Mortgage key terms, Consumer Financial Protection Bureau.