Bridge Loan Calculator

How it is calculated

The tool prices a simple interest-only loan with no principal repayment during the term. monthly interest = loan_amount × annual_rate% ÷ 12; total interest = monthly interest × term_months; origination fee = loan_amount × fee%. Total cost is total interest plus the fee, and the payoff amount is the loan amount plus that total cost. Interest is flat: it does not compound and does not change as months pass. The fee is added to the payoff figure even though many lenders charge it at closing, so the result shows the total you pay, not its timing. Amount and term must be above zero; the rate may be zero but not negative, and the fee must be between 0 and 100 percent. Anything outside those ranges shows no result. Real quotes can add legal, appraisal or extension fees that are not included.

Common mistakes

• Leaving out the origination fee when comparing offers. A low rate with 3 points can cost more over a few months than a higher rate with 1 point.
• Entering the term in years. The field is in months, so 1 year must be typed as 12.
• Treating the annual rate as the cost of the whole loan. A 10.5% annual rate over six months is only half a year of interest, about 5.25% of the amount before fees.
• Assuming the loan is repaid gradually. This is interest-only, so the full principal is still due at payoff and monthly interest does not shrink.
• Typing the fee as a decimal (0.02) instead of percent (2); that gives a fee of only 0.02%.