A bridge loan lets you tap your current home's equity to fund the purchase of a new home before your existing home sells. It's a short-term financing solution (typically 3 to 12 months) that can help you avoid the timing gap between buying and selling. Our bridge loan calculator estimates your loan amount, monthly interest cost, total interest over the loan term, and net proceeds from your home sale so you can see the full picture before you commit.
Bridge Loan Calculator
Estimate your bridge loan amount, monthly interest cost, and net proceeds when your current home sells.
A bridge loan uses your current home equity as collateral. Lenders typically cap the loan at 80% LTV (loan-to-value) minus your existing mortgage balance. Payments are interest-only until the loan is repaid at closing.
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Important bridge loan terms to know
Bridge loan amount: The amount you can borrow, calculated at 80% of your current home's value minus your existing mortgage balance. This is the standard LTV cap most lenders apply. On a $456,000 home with a $228,000 mortgage balance, for example, the maximum bridge loan would be roughly $136,800.
80% LTV cap: Lenders limit bridge loans to 80% of your current home's value to maintain a cushion against market fluctuations. Your available equity and your bridge loan amount are two different numbers - the LTV cap is what actually determines how much you can borrow.
Available equity: Your home's current value minus your outstanding mortgage balance. This is your gross equity - your actual borrowing capacity will be lower once the 80% LTV cap is applied.
Monthly interest payment: Bridge loans are interest-only: You pay no principal during the loan term. The full loan balance is repaid when your current home sells. Interest-only payments keep monthly costs manageable during the transition period, but the interest rate is typically higher than a standard mortgage.
Bridge loan rate (APR): Bridge loan rates are significantly higher than conventional mortgage rates — often in the 8.5–10.5% range, reflecting the short-term, higher-risk nature of the product. Even over a 6-month period, the total interest costs add up and should be factored into your net proceeds calculation.
Loan term: Most bridge loans run 3 to 12 months. The shorter the term, the less total interest you pay — but you'll need to sell your current home quickly enough to repay the loan before it comes due.
Selling costs: The costs of selling your current home (agent commissions, title fees, transfer taxes, and other closing costs) typically run 6–8% of the sale price. These are drawn directly from your sale proceeds and reduce your net cash available after repaying the bridge loan.
Net proceeds: What you actually walk away with after the sale. The calculator subtracts selling costs, your mortgage payoff, and the bridge loan repayment from your gross sale price to show your true net proceeds — and how much of your new purchase that covers.
When a bridge loan makes sense
Bridge loans are most useful when you've found the home you want to buy but haven't sold your current home yet, and you can't or don't want to make a contingent offer. They can give you the flexibility to move without being forced into a rushed sale. The trade-off is cost: Higher rates, origination fees, and the risk that your current home takes longer to sell than expected.
They're generally a better fit when your current home is in strong selling condition, your local market moves quickly, and the math on net proceeds still works after accounting for total interest and selling costs.
How to get help with a bridge loan
Bridge loans aren't offered by all lenders, and terms vary significantly. Working with an experienced mortgage broker can help you find lenders that offer competitive bridge financing and understand the full cost picture.
Best Interest Financial can help you navigate the process. With decades of experience and over $1 billion in closed loans, their team knows how to structure short-term financing solutions that large retail banks often don't offer. Talk with a Best Interest loan officer today!