Gross capacity and usable bridge proceeds
A bridge loan can release equity from a home before it sells, or support an investment property transaction. Combined loan to value adds any mortgage that stays on the security property to the bridge. The calculator starts with the appraised value times your lender’s LTV limit and models the quote costs within that capacity.
Usable cash means the net advance minus separately paid upfront costs and any mortgage being redeemed. Interest paid monthly still needs to be budgeted for: it appears in the monthly payment and total cost, rather than being deducted from day-one cash.
Keep or pay off the existing mortgage
Choose Stays in place when the existing mortgage remains secured alongside the bridge. Its balance reduces the total debt headroom. Choose Paid off from this loan when the bridge redeems it at completion: the new bridge then funds that payoff, and only the cash left afterwards is available for your next purpose.
The calculator never subtracts the same balance from both the LTV ceiling and the cash advance. It assumes the existing debt stays constant if it remains in place; it does not model mortgage amortisation, changing payoff statements or another property purchase.
Match the LTV basis and interest terms
A gross opening limit includes financed setup fees and retained interest. A redemption limit also includes deferred or compounded interest and the quoted exit fee. The two bases can produce different cash limits. Select the one used by your lender rather than assuming every lender has the same definition.
Retained uses simple interest on the gross opening balance, deducted at the start. Deferred uses simple interest paid at the end. Monthly compound adds interest to the balance each month. Serviced pays simple monthly interest. These are explicit quote models; the words retained or rolled-up alone do not establish a lender’s precise calculation.
Percentage fees can be based on the net advance or gross opening loan. The calculator solves the advance that fits the chosen cap, then shows the interest, fees, monthly payment where applicable and the amount due at the end.
Worked example: US bridge borrowing capacity
A home is valued at $500,000 with a $275,000 mortgage staying in place. An illustrative 80% combined LTV limit on the opening loan leaves $500,000 × 80% − $275,000 = $125,000 of gross bridge capacity. With no interest reserve or financed points, the net advance is also $125,000.
At 9.5% nominal per year for six months, serviced interest is $989.58 a month, with $5,937.50 of interest over the term. A 1% origination fee paid separately is $1,250, and other closing costs are $1,000. Usable cash after those upfront costs is $122,750. Total interest and fees are $8,187.50; the bridge principal due at the end is $125,000.
These figures are illustrative inputs, not a current lender offer. The remaining mortgage and any new-home mortgage still need to be carried alongside the bridge.
What the estimate does not decide
This is a quote-arithmetic and equity estimate, not a lending decision. Residential lenders may assess whether you can carry the existing home, new home and bridge obligations. Investment and commercial lenders may also impose loan-to-cost, after-repair value, debt-service or property-type limits. This LTV calculation does not implement those additional tests.
The model excludes rate changes, daily interest adjustments, minimum-interest periods, extension charges, tax and unentered purchase or selling costs. It assumes one security value, full repayment of the selected mortgage balance where requested and a single drawdown. Fees or payoff costs that use all the capacity produce a clear refusal rather than a negative cash result.
For the cost of a specific amount you need, use the US swing loan calculator .
For staged renovation funding and value after works, use the US fix and flip loan calculator .
Use the right country page
This US page uses dollars, annual-rate defaults, mortgage payoff language and origination points. The United Kingdom link above the inputs opens the separate UK bridging borrowing page in pounds, with retained-interest and arrangement-fee defaults. Inputs reset; amounts are not silently converted.
Inputs for the bridge loan borrowing power calculator
Property value
Use the lender’s current appraisal. Combining several properties into one value does not establish that a lender accepts all of them as security.
Existing mortgage balance
Enter the outstanding secured balance, then choose whether it remains in place or is fully repaid from the bridge.
What happens to existing debt?
Stays in place subtracts the balance from combined LTV headroom. Paid off funds the mortgage from the new advance; its interest and fees are therefore charged on the larger bridge.
Lender maximum combined LTV
Enter the limit on your quote. This is an assumption you control, not a national lending rule.
LTV limit measured on
Opening uses the gross loan at completion. Redemption also reserves for interest and exit fees due at the end. Ask the lender which basis applies.
Quoted interest rate
Enter the note rate and select its period; do not enter APR as though it were a nominal interest rate.
Rate quoted per
Annual nominal divides by twelve. Annual effective converts to an equivalent monthly rate.
Term
Whole months until repayment. The calculation assumes that the quoted rate stays fixed for this period.
How interest is paid
Retained simple interest is withheld up front. Deferred simple and monthly compound interest are added at redemption. Serviced interest is paid monthly and does not reduce the initial cash.
Origination fee (points)
Enter the quoted percentage and choose net or gross as its basis.
Exit fee
A percentage paid on redemption, using the same selected fee basis. It reduces capacity only when the LTV limit is measured at redemption.
Percentage fees based on
Net means the advance after retained interest and deducted fees, before separate costs or any mortgage payoff. Gross means the opening loan balance.
Origination fee payment
Deducted fees come out of the gross loan. Separate fees are paid at the start and deducted when showing usable cash.
Other quoted costs
Legal, appraisal, broker or closing costs paid at the start. Include each cost once; these are not financed or charged interest here.
CALCULATOR QUESTIONS
US bridge loan borrowing calculator questions
How much can I borrow with a US bridge loan?
Start with the lender’s accepted property value times its LTV limit. Debt staying in place reduces that headroom; retained interest, financed fees and any redemption cap can reduce the advance further. Use the usable cash result rather than treating the gross cap as spendable money.
Does usable cash include all interest costs?
Retained interest is already withheld. Serviced interest is paid monthly and remains a future cash-flow requirement. Deferred or compound interest is due at the end and is reserved within capacity only when the cap is measured at redemption. Total cost shows the full quoted interest and fees in every mode.
Should I subtract my existing mortgage twice?
No. If it stays, it reduces combined LTV headroom. If it is paid off by the bridge, the new loan funds it and the payoff is deducted from the net advance. The calculator handles the chosen treatment once.
Are the default LTV and rate lending rules?
No. They are illustrative assumptions. Enter the limits, rate, fee basis and interest calculation in your own lender’s quote.
Can this approve a bridging or bridge loan?
No. It does not assess credit, affordability, property eligibility or the credibility of a sale or refinance exit. Other lender limits may reduce the amount.
What happens when I change country?
The country links open separate regional pages with their own currency, defaults, wording and content. Inputs reset and financial amounts are not converted.