Bridge Loan Cost CalculatorFree online financial calculator — instant results, no sign-up
Estimate simple interest and origination costs for a short-term bridge loan.
Estimates only, based on the inputs and assumptions shown. This is not financial, investment, tax, or legal advice. Prices, rates and local rules may change; crypto scenarios do not predict returns. Confirm important decisions with a qualified professional.
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About the Bridge Loan Cost Calculator
The Bridge Loan Cost Calculator estimates simple interest and origination costs for short-term financing used between real estate transactions. It uses the loan principal, annual interest rate, term in months, and origination fee percentage to estimate financing costs separately from principal repayment.
- Principal ($)
- The bridge loan amount in dollars on which interest and the origination fee are calculated, defaulting to $150,000.
- Annual rate (%)
- The yearly simple interest rate expressed as a percentage, defaulting to 10%.
- Term (months)
- The length of time the bridge loan remains outstanding, measured in months and defaulting to 6 months.
- Origination fee (%)
- The lender's upfront origination charge expressed as a percentage of principal, defaulting to 2%.
Formula and method
I = P × (r / 100) × (m / 12); F = P × (f / 100); C = I + F
- PLoan principal in dollars.
- rAnnual interest rate entered as a percentage.
- mLoan term in months.
- fOrigination fee entered as a percentage of principal.
- IEstimated simple interest in dollars over the loan term.
- FEstimated origination fee in dollars.
- CTotal financing cost in dollars, excluding repayment of principal.
Convert both percentage inputs to decimals and divide the term in months by 12 to express it in years. Multiply principal by the annual rate and the term in years to calculate simple interest. Separately multiply principal by the origination fee rate, then add the two costs. With the default inputs, interest is $150,000 × 0.10 × (6 / 12) = $7,500.00; the origination fee is $150,000 × 0.02 = $3,000.00; total financing cost is $7,500.00 + $3,000.00 = $10,500.00.
Worked example
These are the calculator's starting values and the results it actually produces for them.
Inputs
- Principal150000 $
- Annual rate10 %
- Term6 months
- Origination fee2 %
Results
- Interest$7,500.00
- Origination fee$3,000.00
- Total financing cost$10,500.00
How to use the Bridge Loan Cost Calculator
- 1Enter the bridge loan principal in dollars; the default is $150,000.
- 2Enter the quoted annual interest rate as a percentage; the default is 10%.
- 3Enter the expected borrowing period in months; the default is 6 months.
- 4Enter the origination fee as a percentage of principal; the default is 2%.
- 5Review the interest, origination fee, and total financing cost estimates, then compare them with the lender's written terms.
Reading your result
The Interest row shows the estimated charge for borrowing the principal over the selected term: $7,500.00 with the defaults. The Origination fee row shows the percentage-based lender charge: $3,000.00 with the defaults. The Total financing cost row combines those two charges: $10,500.00 with the defaults. This total is a borrowing-cost estimate, not the loan balance, monthly payment, or payoff amount; it excludes repayment of the $150,000 principal.
Limitations
The estimate assumes a fixed annual rate, simple interest, and the full principal outstanding throughout the entered term. It treats each month as one-twelfth of a year rather than using exact dates or a lender-specific day-count convention. It does not model amortization, compounding, staged draws, changing rates, or interest on financed fees. It excludes appraisal, title, escrow, legal, broker, extension, and other charges, as well as prepayment penalties or minimum-interest requirements. The origination fee is calculated once on principal regardless of term. Results are not an APR calculation, lender quote, or determination of tax treatment.
Common questions
Does the $10,500.00 default total include paying back the bridge loan?+
No. It includes only $7,500.00 in simple interest and a $3,000.00 origination fee. The $150,000 principal must still be repaid under the loan agreement.
How can I estimate costs if my property sells before the 6-month bridge term ends?+
Enter the expected number of months the loan will actually remain outstanding. The calculator reduces interest proportionally but leaves the percentage-based origination fee unchanged; minimum-interest provisions and early-payoff charges can make the actual cost higher.
Does the default 10% annual rate already include the 2% origination fee?+
No. This calculator treats the annual interest rate and origination fee as separate inputs. Use the contractual interest rate, not an APR that may already reflect fees, to avoid counting costs twice.
Can this calculator model a bridge loan with the origination fee added to the balance?+
Not separately. It calculates interest and the origination fee from the same entered principal and does not automatically add the fee to the interest-bearing balance. If your lender finances the fee, confirm the fee basis and interest-bearing balance with the lender.
Does the calculator save my information?+
Calculations run in your browser. While signed in, inputs and results are automatically recorded in account history; saving a result creates a separate saved record.
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Results are estimates for informational purposes and are not financial, medical or legal advice.