Buy before you sell
Bridge Loan Calculator
Use this bridge loan calculator to estimate the maximum bridge loan, the interest-only payment, and the cost of buying your next home before the current one sells. The example below uses the same numbers loaded in the tool.
Calculator Command Center
Estimate your bridge loan
Estimate monthly bridge payment, interest cost, available equity, and cash needed for your next home purchase.
Current Home Details
Bridge Loan Details
New Home Details
Payment Composition
Monthly bridge payment and carry-cost estimate mix.
Quick Results Snapshot
Based on your current assumptions.
Estimated Monthly Bridge Payment
$1,238
Estimated Interest Cost Over Term
$7,425
Estimated Available Equity
$365,000
Estimated Cash Needed
$0
Bridge Loan Breakdown
Based on your current assumptions, your estimated monthly bridge loan payment is $1,238 and your projected short-term borrowing cost is $15,425 over 6 months.
This bridge loan calculator provides an estimate only. Final bridge financing terms, rates, fees, loan structure, eligibility, and approval depend on lender guidelines, equity position, credit profile, property type, and transaction details.
Need a Real Bridge Financing Quote?
Talk with a loan officer to review your timeline and equity structure.
Methodology uses current home value, mortgage payoff, bridge amount, term, selected rate, fee assumptions, and optional carry costs. This is informational and not a final loan offer or commitment to lend.
Calculated with National Mortgage Center
Know your numbers. Plan your next move.
Worked example: buying before you sell
Maximum bridge = home value × 80% − current mortgage. Monthly interest = bridge amount × annual rate ÷ 12. On a $650,000 home with a $285,000 mortgage, the 80% combined loan-to-value guide is $235,000. This example borrows $180,000, which puts the combined loan-to-value at 71.5%.
Monthly interest
$1,237.50
Interest over 6 months
$7,425
Total short-term cost
$15,425
Equity left after payoff
$139,800
The $1,237.50 payment is interest-only at 8.25% on $180,000. The tool rounds that monthly figure to the nearest dollar. A 1% origination fee is $1,800, and closing costs are $6,200, so the short-term cost over a 6-month sale is $15,425. Each extra month on the market adds $1,237.50 in bridge interest. Taxes and insurance on the current home add $750 a month, so the illustrated carry on that home is $1,987.50 before the new mortgage payment.
The loan term in the tool is 9 months. The cost above uses the 6-month sale timeline, because the bridge is repaid when the home sells. If the sale takes the full 9 months, interest is $11,137.50. With sales proceeds left blank, the calculator nets 94% of value after a 6% selling-cost allowance, then subtracts the mortgage, the bridge, and closing costs, leaving $139,800.
| Month | Interest | Interest paid to date | Bridge balance |
|---|---|---|---|
| 1 | $1,237.50 | $1,237.50 | $180,000 |
| 2 | $1,237.50 | $2,475 | $180,000 |
| 3 | $1,237.50 | $3,712.50 | $180,000 |
| 4 | $1,237.50 | $4,950 | $180,000 |
| 5 | $1,237.50 | $6,187.50 | $180,000 |
| 6 | $1,237.50 | $7,425 | $180,000 |
Fannie Mae treats a bridge loan as a contingent liability that counts in the debt-to-income ratio until the lender has a fully executed sales contract on the current home and confirmation that any financing contingency has cleared. Selling Guide B3-6-05 is the section that describes that treatment. Until then, the current housing payment, the bridge payment, and the new mortgage can all count.
How to Use the Bridge Loan Calculator
Step 1
Enter your current home value and mortgage balance
Step 2
Add your bridge loan assumptions and timeline
Step 3
Review payment, interest cost, and equity position
Step 4
Speak with a loan officer for personalized terms
What This Bridge Loan Estimate Includes
Estimated bridge loan amount
Monthly payment estimate
Interest cost over selected term
Estimated available equity position
Estimated fees and closing costs
Estimated cash contribution toward next home purchase
What Can Change Your Final Bridge Loan Terms
- Lender-specific bridge loan programs
- Equity and combined loan-to-value limits
- Credit profile
- Occupancy type
- Property eligibility
- Actual payoff amount
- Time needed to sell current home
- Market conditions and rate changes
Common Bridge Loan Scenarios
Buying Before Selling
$650k value, $285k mortgage, $180k bridge, 9 months
High Equity Homeowner
$850k value, $260k mortgage, $200k bridge
Short 6-Month Timeline
$140k bridge, 6-month term
Interest-Only Example
Interest-only payment structure with quick sale
What is a bridge loan?
A bridge loan is a short-term mortgage that lets you use equity in the home you are selling to buy the next one before that sale closes. That is the bridge loan meaning: financing that covers the gap between two closings. You repay it from the sale proceeds, usually within 6 to 12 months. Many programs are interest-only, so the monthly payment is the interest and the full balance is due when the current home sells.
A bridge loan mortgage is secured by the home you already own. It is not the 30-year mortgage on the house you are buying. The purchase still needs its own loan. The bridge loan supplies cash, often the down payment, while you own both homes.
When a bridge loan may make sense
When you need to make an offer without waiting for your existing home to close, and the equity in that home can cover the gap.
Common risks and tradeoffs
The rate is higher than a typical mortgage, and every extra month the home sits on the market adds interest. The payment can also count in your debt-to-income ratio until the sale is under contract.
Bridge Loan vs HELOC vs Cash-Out Refinance
| Feature | Bridge Loan | HELOC | Cash-Out Refinance |
|---|---|---|---|
| Intended use | Buy before selling, gap financing | Flexible revolving equity access | Replace existing mortgage and pull cash |
| Loan term | Short-term | Revolving + repayment period | Long-term mortgage term |
| Payment structure | Often interest-only | Variable draw/payment structure | Principal and interest |
| Speed | Can be fast depending on lender | Can be moderate | Often slower than bridge |
| Closing costs | May be moderate | May be lower to moderate | May be higher due to full refi |
| Flexibility | Transaction-focused | Reusable credit line | Fixed refi structure |
| When it may make sense | Timing gap between two transactions | Need ongoing access to equity | Rates/terms support full refinance strategy |
| Ideal scenario | Homebuyer moving quickly | Equity-rich owner with phased needs | Owner staying in current home and refinancing |
Bridge Loan Calculator FAQ
How much can I borrow with a bridge loan?
A common planning cap is 80% combined loan-to-value: home value times 0.80, minus the current mortgage. A $650,000 home with a $285,000 mortgage supports up to $235,000. Lenders set their own cap, and you can borrow less than the maximum.
What does an extra month on the market cost?
On the default example, a $180,000 bridge at 8.25% interest-only adds $1,237.50 of interest for every extra month. Taxes and insurance on the current home continue as well. The new mortgage payment is separate.
Does a bridge loan count in my debt-to-income ratio?
Fannie Mae treats a bridge loan as a contingent liability that counts in the debt-to-income ratio. The payment can be excluded once the lender has a fully executed sales contract on the current home and confirmation that any financing contingency has cleared. See Selling Guide B3-6-05, Monthly Debt Obligations.
What is a bridge loan?
A bridge loan is a short-term mortgage that lets you use equity in your current home to buy the next one before that home sells. You typically repay it from the sale proceeds within 6 to 12 months. It is not a new 30-year mortgage on the house you are buying.
How does a bridge loan calculator work?
Maximum bridge equals home value times the combined loan-to-value cap, minus the current mortgage. Monthly interest equals the bridge amount times the annual rate divided by 12. The tool then adds origination and closing costs over the months you expect the sale to take.
How accurate is this bridge loan calculator?
It provides a directional estimate. Final terms may vary by lender guidelines, credit profile, equity, and transaction details.
Are bridge loans interest-only?
Many bridge programs may offer interest-only structures, though amortizing options can also exist depending on lender programs.
How long does a bridge loan usually last?
Bridge loan terms are commonly short, often between 6 and 12 months, with some programs extending longer.
How is a bridge loan repaid?
Repayment often happens when your existing home is sold, though exact repayment structure depends on loan terms.
What fees are common with bridge loans?
Common fees may include origination/lender fees, third-party closing costs, and standard title/settlement expenses.
How much equity do I usually need for a bridge loan?
Eligibility often depends on usable equity and combined loan-to-value limits set by the lender.
Can I buy a new home before selling my current one?
Yes, this is a common reason borrowers use bridge financing when transaction timing does not line up.
What is the difference between a bridge loan and a HELOC?
Bridge loans are short-term transaction-focused financing, while HELOCs are revolving lines secured by home equity.
Does this calculator include closing costs?
Yes, the tool includes estimated fee and closing cost inputs so you can model short-term cost scenarios.
Does this estimate give me final loan terms?
No. Final rates, fees, and approval are determined by lender underwriting and full documentation review.
Ready to Bridge the Gap Between Homes?
Move from estimate to strategy with a loan officer who can review your timeline, equity position, and bridge financing options.
How We Calculate This Bridge Loan Estimate
- Current home value and mortgage payoff estimate
- Selected bridge amount, term, and rate
- Estimated fees and closing costs
- Optional carry costs and sale timeline assumptions
Updated October 7, 2026. Secure estimate tool for planning bridge financing scenarios.
This page is informational only. Final rates, terms, and eligibility depend on lender underwriting, credit profile, equity position, and transaction structure.