Bridge Loan Payment Calculator
Bridge loans are usually interest-only: you pay just the interest each month and repay the whole principal at the end. Enter the amount, rate, and term to see the monthly payment and the balloon due.
Estimates only — not financial advice. This calculator gives approximate figures for planning. It is not financial, tax, or legal advice; check with a qualified professional before making decisions.
How the bridge loan payment calculator works
With interest-only payments, the balance never shrinks during the term — each month you pay exactly one month of interest (balance × annual rate ÷ 12), and at the end of the term the entire principal comes due as a balloon payment. A $300,000 bridge at 8.5% for 12 months costs $2,125 a month and $25,500 in total interest, plus the $300,000 balloon.
That balloon is the risk: bridge loans assume you will sell the old property or refinance before it hits. Have the exit plan — and the backup plan — lined up before you sign.
payment = B × r/12 · total interest = payment × months · balloon = B
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Bridge loan payment calculator FAQ
What is a bridge loan?
A short-term loan that “bridges” a gap — most often letting you buy a new home before selling the old one. Terms run 6–24 months and rates sit above standard mortgages.
Are bridge loan payments interest-only?
Usually, yes. You pay only the interest each month and repay the full principal as a balloon payment when the term ends or the old property sells.
What is a balloon payment?
A single large payment of the remaining principal due at the end of the loan term. On an interest-only bridge loan, the balloon equals the original loan amount.
What happens if I cannot repay the balloon?
You may need to refinance, extend the loan (if the lender agrees), or sell under pressure — all expensive. Lenders underwrite bridge loans expecting a clear exit, like a pending sale.
How are bridge loan rates set?
They run higher than conventional mortgages to compensate for the short term and risk — often prime plus a margin, or a fixed rate 1–3 points above mortgage rates.