Bridge Loan Calculator
Work out how much equity you can tap from your current home before it sells (up to 80% combined loan-to-value), your monthly interest-only payment, upfront origination points, and total carrying cost over 3 to 12 months.
Residential bridge loan & usable equity calculator
How bridge loan equity and costs are calculated
| Metric | Formula |
|---|---|
| Maximum second-lien bridge capacity | (Current Home Value × 80% CLTV) − Existing Mortgage Balance |
| Monthly interest-only carry payment | Bridge Loan Amount × (Annual Interest Rate ÷ 12) |
| Total cost for holding period | (Monthly Interest × Months Held) + (Loan × Points %) + Fees |
| Effective annualized APR | Stated Rate + (Upfront Points & Fees ÷ Loan) × (12 ÷ Months Held) |
Bridge Loan Calculator Worked Example: 80% CLTV Equity & 6-Month Carry Cost
Your current home is worth $600,000 with a $300,000 mortgage. At an 80% combined LTV cap ($480,000), your maximum bridge capacity is $180,000. Borrowing $150,000 for the down payment on your next home at 9.5% interest-only with 1.5 points ($2,250) and $1,800 in closing fees costs $1,187.50 a month in interest. If your old home sells in 4 months, total interest is $4,750 plus $4,050 in points and fees = $8,800 total cost (an effective annualized APR of 17.60%).
Common questions
How much can I borrow on a bridge loan?
Most residential bridge lenders cap combined loan-to-value (CLTV) at 75% to 80% of your current home's appraised value minus your existing mortgage balance.
Why is a bridge loan's APR much higher than its interest rate?
Because 1% to 2% upfront origination points and closing fees are spread over only 3 to 6 months instead of 30 years.
Do bridge loans require monthly payments?
Some bridge loans require monthly interest-only payments, while others accrue interest and deduct it from your home sale proceeds at closing.
Sources
- CFPB Regulation Z (12 CFR § 1026.32): Short-Term Bridge Loan & APR Rules
- Fannie Mae Selling Guide: Bridge Loan & Departing Residence Equity Rules
More calculators: Hard Money Loan Calculator · DSCR Loan Calculator · Commercial Mortgage Calculator · Seller Financing Calculator
New 2026 tax, pension, unemployment & loan calculators: Bridge Loan Calculator · Cash Out Refinance Calculator · Commercial Mortgage Calculator · Florida Vehicle Registration Fee Calculator · Form 4562 Calculator · Form 8379 Calculator · Form 8880 Calculator · Form 8889 Calculator · Form 982 Calculator · FRS Pension Calculator · Hard Money Loan Calculator · Medicare IRMAA Calculator · Pennsylvania Unemployment Calculator · QQQI Dividend Calculator · Real Estate Commission Calculator · Texas Unemployment Benefits Calculator · TRS Texas Retirement Calculator · VA Disability Calculator · Wisconsin Unemployment Calculator
Related
General information, not financial, tax or legal advice. Check important numbers with the official source before acting on them.