Bridge Loan Calculator

Calculate bridge loan cost when buying before selling your current home.
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Monthly Bridge Payment

$1,062.50

Total Bridge Cost

$9,375.00

Equity in Current Home

$250,000.00

Bridge Loan Costs

Monthly Interest Payment$1,062.50
Total Interest (6 months)$6,375.00
Closing Costs$3,000.00
Total Cost of Bridge$9,375.00

Current Home Sale

Current Home Value$450,000.00
Mortgage Balance- $200,000.00
Equity$250,000.00
Selling Costs (agent, closing)- $27,000.00
Net Proceeds$223,000.00

After Sale

Net Sale Proceeds$223,000.00
Repay Bridge Loan- $150,000.00
Remaining After Repayment$73,000.00
StatusSale proceeds cover bridge loan
True Cost of Bridging$9,375.00

Use the Bridge Loan Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

How It Works

This Bridge Loan Calculator helps you estimate the costs associated with securing a bridge loan when you need to purchase a new home before selling your current one. In 2026, with fluctuating interest rates and property values, understanding these upfront costs is crucial for smooth financial planning and avoiding unexpected burdens. It provides a clear picture of potential expenses like interest payments and fees, allowing you to make informed decisions.

The calculator determines the total bridge loan cost by summing up the estimated interest payments and typical closing fees. Interest is calculated using the principal loan amount, the estimated annual interest rate (e.g., 9.5% in 2026), and the expected loan term (e.g., 6 months). Closing fees, often 1-3% of the loan amount, are added to this interest to provide a comprehensive cost estimate.

A common mistake is underestimating the loan term; delays in selling your current home can significantly increase costs. Always factor in a buffer for the sale period. Additionally, compare bridge loan rates and fees from multiple lenders, as these can vary widely and impact your overall expenditure.

Example: Bridge Loan for a $400,000 Purchase

  1. 1 Step 1: Input your current home's estimated value ($500,000), the down payment you'll make on your new home ($100,000), the estimated bridge loan interest rate (9.5%), and the expected loan term (6 months).
  2. 2 Step 2: The calculator determines the bridge loan amount needed (e.g., $100,000 to cover the down payment), calculates the interest accrued over 6 months ($4,750), and adds estimated closing fees (e.g., 2% or $2,000).
  3. 3 Step 3: The estimated total bridge loan cost is $6,750. This includes $4,750 in interest and $2,000 in closing fees.
  4. 4 Step 4: This $6,750 represents the additional expense of using a bridge loan to facilitate your home purchase before selling your current property. This cost should be factored into your overall budget and compared against the potential benefits of securing your new home quickly.

Source: CFPB — Owning a Home · Last updated: April 2026

Frequently Asked Questions

What is a bridge loan for buying a home?
A bridge loan is short-term financing (6-12 months) that lets you buy a new home before selling your current one. It uses your current home equity as collateral. You pay both the bridge loan and your existing mortgage until your old home sells.
How much does a bridge loan cost?
Bridge loan rates are typically 2-3% higher than standard mortgages (8-10%+ in 2026), plus 1-3% in origination fees. On a $200,000 bridge loan for 6 months, total costs could be $8,000-$13,000. This is the cost of convenience for not having to sell before buying.
What are alternatives to a bridge loan?
Alternatives include a home equity line of credit (HELOC) at lower rates, making an offer contingent on selling your current home, negotiating a rent-back agreement with your current buyer, or using a sale-leaseback program. Each has trade-offs in cost, speed, and competitive positioning.

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