Bridge Loan Carry Cost Estimator

See the carrying cost of a bridge loan before you commit. Provide the loan amount, APR, and holding period to reveal the monthly interest, total interest due before payoff, upfront points and fees, and the implied annualized rate you are effectively paying.

Total proceeds advanced by the bridge lender to cover purchase or construction costs.
Quoted annual interest rate for the bridge loan.
Expected number of months before the bridge loan is paid off or refinanced.
Optional. Defaults to 0% if blank. Use lender points charged upfront on the funded amount.
Optional. Defaults to $0. Include underwriting, legal, or appraisal fees funded at closing.

Calculations assume interest-only payments with no amortization and ignore potential escrow or tax advances. Confirm payoff quotes with your lender.

Examples

  • $425,000 loan, 9.75% APR, 7 months, 2% points, $3,850 fees ⇒ Monthly interest only payment: $3,453.13 USD • Interest over 7 months: $24,171.88 USD • Upfront points and fees: $12,350.00 USD • Total cash cost of financing: $36,521.88 USD • Effective annualized rate: 14.73%
  • $300,000 loan, 11.25% APR, 4 months, points blank, fees blank ⇒ Monthly interest only payment: $2,812.50 USD • Interest over 4 months: $11,250.00 USD • Upfront points and fees: $0.00 USD • Total cash cost of financing: $11,250.00 USD • Effective annualized rate: 11.25%

FAQ

Does this include extension fees?

No. Add anticipated extension or renewal charges to the other closing cost field or rerun the calculator with the longer term once you know the exact fee.

How do I reflect an interest reserve?

Enter the full loan amount including any interest reserve the lender funds, then treat the reserve draw as part of the cash cost you cover at payoff.

Can I compare this to permanent financing?

Yes. Use the effective annualized rate output to benchmark against mortgage offers and quantify how much the bridge premium costs to move quickly.

Additional Information

  • Most bridge lenders collect interest-only payments, so the principal balance remains outstanding until payoff or refinance.
  • Origination points are calculated as a percentage of the funded loan amount and are due at closing.
  • Effective annualized rate divides the total carrying cost by loan size and converts the short holding period into a 12-month equivalent.

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