Bridge Loan Calculator
Estimate the interest cost of a bridge loan — a short-term, interest-only loan that 'bridges' the gap until longer-term financing or a property sale completes. Enter the loan amount, annual rate, and term to see the monthly interest and total repayment.
Formula
Monthly Interest = Principal × Annual Rate / 1200
Total Interest = Monthly Interest × Duration
Total Repayment = Principal + Total Interest
30,000 bridge loan at 12% for 6 months
Inputs
- Bridge Loan Amount: 30000
- Annual Interest Rate: 12 %
- Duration: 6 months
Monthly interest = 30,000 × 12% ÷ 12 = 300. Over 6 months that's 1,800 in interest, so the total repayment is 31,800.
Frequently asked questions
What is a bridge loan?
A bridge loan is short-term financing that covers a gap — for example, buying a new home before your current one sells. It's usually interest-only and repaid when long-term funds arrive.
How is bridge loan interest calculated?
This calculator treats it as interest-only: monthly interest = principal × annual rate ÷ 12. The principal is repaid in full at the end of the term.
Why are bridge loan rates higher?
Bridge loans are short-term and higher-risk for lenders, so they typically carry higher interest rates than standard mortgages.
Does this include fees?
No. Arrangement, valuation, and exit fees can add significantly to the cost. Add them separately for a full picture.
When is the principal repaid?
Typically as a lump sum when your long-term financing completes or your property sells, rather than in monthly instalments.