Bridge Loan Calculator

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

By Konstantin Iakovlev · Updated September 2026 · Source: CFPB — Owning a 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

When you have to buy a new home before the old one sells, a bridge loan fills the gap, and this tool estimates what that gap financing costs. Getting a clear read on the expense, from interest to fees, is what keeps the transition smooth and free of nasty surprises, and it lets you decide with the numbers in front of you.

Total cost is interest plus closing costs. Interest is simple and interest-only: the bridge amount you enter times the annual rate divided by 12 gives the monthly payment, and that times the number of months gives total interest. Closing costs are the percentage you enter (2% by default) of the bridge amount. The calculator also subtracts your mortgage balance and selling costs (6% by default) from the current home's value to show your net sale proceeds and whether they cover repaying the bridge loan.

The most expensive miscalculation is assuming your current home sells on schedule, since every week of delay adds to the bill, so pad the sale window when you plan. Rates and fees on bridge loans range widely from one lender to the next, which makes shopping several of them worth the effort.

Example: Bridge Loan for a $400,000 Purchase

  1. 1 Step 1: Input your current home's value ($500,000) and mortgage balance ($200,000), the new home's price ($400,000), and a $100,000 bridge loan to cover the down payment. The bridge amount is a figure you enter; the calculator does not size it for you. Use a 9.5% rate, a 6-month term, 2% closing costs and 6% selling costs.
  2. 2 Step 2: Interest is $100,000 × 9.5% ÷ 12 = $791.67 a month, or $4,750 over 6 months. Closing costs are 2% × $100,000 = $2,000.
  3. 3 Step 3: The estimated total bridge loan cost is $4,750 + $2,000 = $6,750. Every month the sale runs past plan adds another $791.67.
  4. 4 Step 4: On the sale side, equity is $500,000 − $200,000 = $300,000. Selling costs of 6% ($30,000) leave $270,000 of net proceeds, enough to repay the $100,000 bridge loan with $170,000 left over. Weigh the $6,750 against the benefit of securing the new home before the old one sells.

Source: CFPB — Owning a Home · Last updated: September 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?
Rates and fees vary by lender, so enter the quotes you get. At the calculator's defaults of 8.5% and 2% closing costs, a $200,000 bridge loan held for 6 months costs $8,500 in interest plus $4,000 in closing costs, $12,500 in total, and each extra month adds $1,416.67. 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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