Bridge Loan Calculator
Estimate interest-only payments, financing costs, cash needed, and net proceeds for a short-term bridge loan used to purchase or refinance a property before a permanent exit. This estimate is informational only and is not an approval, rate quote, or commitment to lend.
- 1Property
- 2Bridge Financing
- 3Costs & Exit
- 4Your Results
Step 1 of 4: Property
Tell us about the property
Start by selecting your scenario and the property's current value.
The estimated current value of the property in its present condition.
The price you are paying to acquire the property.
This calculator provides an illustrative estimate for educational and planning purposes only. It is not a loan offer, approval, commitment to lend, rate quote, or guarantee of available terms. Interest calculations assume interest-only payments and exclude taxes, insurance, appraisal, legal, inspection, title, escrow, extension, draw, servicing, and prepayment fees unless entered above. The full loan principal remains due at payoff. Actual rates, payments, points, fees, eligibility, and loan terms vary by borrower, property, lender, valuation, and market conditions. Borrowers should review personalized options with a qualified lending professional.
What Is a Bridge Loan?
A bridge loan is a short-term, interest-only loan designed to span the gap between buying a new property and selling or refinancing an existing one. Instead of relying on long-term income qualification, bridge lenders focus on the property's value and the borrower's exit plan.
Because bridge loans are interest-only, monthly payments cover interest but do not reduce the principal balance. The full loan amount remains due at maturity. Program requirements and availability vary by lender, borrower, and property, so Anchor Capital Lending helps borrowers review and compare available bridge financing options for their scenario.
How Bridge Financing Works
Short-term, interest-only
Monthly payments cover interest on the loan amount. The principal balance is not reduced during the term and remains due at payoff.
Purchase or refinance
Bridge loans can fund a new purchase before a sale closes, or refinance an existing property until permanent financing is arranged.
Clear exit strategy
Lenders typically require a realistic plan to repay the loan — usually a sale or refinance into permanent financing — before the term ends.
Understanding Bridge Loan Costs
Because bridge loans are interest-only, the monthly payment is calculated by dividing the annual interest on the loan amount by 12. Origination points are an upfront fee expressed as a percentage of the loan amount — one point equals 1% of the loan. The estimated total financing cost combines total interest, the origination fee, and any other closing costs you enter.
For a purchase, the estimated cash needed at closing is the difference between the purchase price and the loan amount, plus the origination fee and other costs. For a refinance, the estimated net proceeds are the loan amount minus the current loan payoff and financing costs. This calculator does not estimate flip profit, ARV ROI, rental DSCR, or long-term amortization.
Exit Strategies and Risks
Sell the property
Repay the bridge loan from the proceeds of selling the property before the term ends.
Refinance
Replace the bridge loan with permanent financing once the property is stabilized or market conditions allow.
Plan for the balloon
Because the full principal remains due at payoff, a realistic exit plan is essential. Extension fees or default can apply if the loan is not repaid on time.
Bridge Loans vs. Hard Money
Bridge loans and hard money loans are both short-term, asset-based, and typically interest-only. A bridge loan is specifically structured to bridge a timing gap — often between a purchase and a sale or permanent refinance — while hard money is a broader category of short-term investment financing.
The terms, rates, and structure overlap significantly. The right approach depends on your scenario, timeline, and exit plan. Anchor Capital Lending helps borrowers review both options and identify the most appropriate path for their transaction.
Frequently Asked Questions
What is a bridge loan?
A bridge loan is a short-term, interest-only loan used to span the gap between buying a new property and selling or refinancing an existing one. Because bridge loans are asset-based and designed for speed, they focus on the property's value and the borrower's exit plan rather than long-term income qualification. They are intended to be repaid quickly through a sale or refinance.
How is a bridge loan different from a hard money loan?
Bridge loans and hard money loans are both short-term, asset-based, and typically interest-only. A bridge loan is specifically structured to bridge a timing gap — often between a purchase and a sale or permanent refinance — while hard money is a broader category of short-term investment financing. The terms, rates, and structure overlap significantly, and the right option depends on your scenario and exit strategy.
What does interest-only mean?
Interest-only means your monthly payments cover only the interest on the loan amount, not the principal. The principal balance does not decrease during the term, and the full loan amount remains due at payoff. This keeps monthly payments lower but requires a clear plan to repay the principal at exit.
What is an exit strategy?
An exit strategy is how you plan to repay the bridge loan before the term ends. The two most common exits are selling the property or refinancing into permanent financing. Lenders typically want to see a realistic exit plan before approving a bridge loan, since the full principal comes due at maturity.
What are the risks of a bridge loan?
Because bridge loans are short-term and interest-only, the full principal remains due at payoff. If your property does not sell or you cannot refinance before the term ends, you may face extension fees, a balloon payment, or default. Rates and costs are typically higher than permanent financing. This calculator helps you estimate costs, but it cannot predict market conditions, sale timing, or refinancing availability.
Is this calculator result a loan offer or approval?
No. The result is an informational estimate for educational and planning purposes only. It is not a loan offer, approval, commitment to lend, rate quote, or guarantee of available terms. Actual rates, payments, points, fees, eligibility, and loan terms are determined following review by the appropriate licensed lending professional.
Ready to Review Your Bridge Financing Options?
Schedule a consultation to discuss your property, timeline, and available lending options. We'll review your scenario and help identify the appropriate next steps.
Submitting an inquiry does not guarantee approval or constitute a commitment to lend. Financing availability and terms are determined following review by the appropriate licensed lending professional.
This calculator provides an illustrative estimate for educational and planning purposes only. It is not a loan offer, approval, commitment to lend, rate quote, or guarantee of available terms. Interest calculations assume interest-only payments and exclude taxes, insurance, appraisal, legal, inspection, title, escrow, extension, draw, servicing, and prepayment fees unless entered above. The full loan principal remains due at payoff. Actual rates, payments, points, fees, eligibility, and loan terms vary by borrower, property, lender, valuation, and market conditions. Borrowers should review personalized options with a qualified lending professional.