Compare bridge loans for the same purpose and time
In the United States, a bridge loan can describe short-term financing for a home purchase before an existing home sells, often called a swing loan. Investors and commercial property borrowers also use bridge financing for acquisitions, renovation or a planned refinance. Those are different lending situations, but the cost comparison can use the same arithmetic when the written quote terms match.
Use offers for the same gross loan amount and expected holding period. Fannie Mae's Selling Guide discusses bridge or swing loans in a single-family purchase context; it does not define every commercial bridge loan. This calculator does not assess underwriting, collateral, eligibility or whether a borrower can carry multiple obligations.
Enter the rate basis and how interest is paid
Choose the period stated in each term sheet. A monthly rate is used as quoted. An annual nominal rate is divided by 12. An annual effective rate is converted to an equivalent monthly rate. These conversions describe the selected mathematical convention; use the lender's stated rate basis and payment terms.
For interest-only payments made monthly, monthly interest is the gross loan multiplied by the monthly rate. Simple interest due at exit is gross loan × monthly rate × months. Monthly compounding adds unpaid interest to the balance each month. Retained simple interest is calculated simply and subtracted from the loan proceeds at closing. The planned holding period uses whole months; this tool does not infer a daily accrual convention.
How origination points, closing costs and payoff are counted
Enter origination points as a percentage of the gross loan. A broker fee can also be entered as a percentage. Choose whether percentage fees are withheld or paid separately. Add fixed appraisal, legal, title, broker or other closing charges in the upfront-cost field and select their timing separately. Enter any payoff or exit fee as a percentage of gross loan.
Finance cost is interest plus origination, broker, other entered costs and the exit fee; it excludes repayment of principal. Loan proceeds subtract retained simple interest and any percentage or fixed costs marked as withheld. Separately paid upfront charges are shown separately and subtracted to calculate usable cash after all upfront costs. Cost per usable cash divides total entered finance cost by day-one usable cash for the selected hold. It is an arithmetic ratio, not annualized and not APR; it cannot make different usable cash amounts like-for-like. Fee timing alone does not change usable cash when the same charges are paid either way. The exit amount includes principal, interest due at exit under the selected method, and the exit fee. Monthly interest paid already is not counted again at payoff.
This is not an APR or APRC calculation. The CFPB's Loan Estimate comparison guidance helps consumers compare covered mortgage offers by rate, payment, upfront charges and cash to close; its scope is not a universal rule for business-purpose commercial bridge loans.
Worked example: $250,000 for six months
Quote A charges 12% a year, nominal, with interest paid monthly, 2 origination points withheld and $1,500 of other closing costs paid separately. Monthly interest is $250,000 × 0.12 ÷ 12 = $2,500, or $15,000 over six months. Fees and costs total $6,500, so finance cost is $21,500. Net loan proceeds are $245,000; after the separately paid $1,500, usable cash is $243,500. Principal due at payoff is $250,000. Cost per usable cash is $21,500 ÷ $243,500 = 0.0883 per $1 over six months; it is not annualized or APR.
Quote B charges 10.5% a year, nominal, with monthly interest payments, 1 point withheld and $2,500 of separate costs. Monthly interest is $2,187.50, or $13,125 over six months. Fees and costs total $5,000, making finance cost $18,125. Net proceeds are $247,500; after the separately paid $2,500, usable cash is $245,000. Principal due at payoff is $250,000. The entered cost difference is $3,375, while usable cash differs by $1,500. This is not a like-for-like funding comparison; compare offers sized to the same usable cash, and check service, conditions and exit terms. Cost per usable cash is 0.0740 per $1 over this hold, not APR.
Check payoff, extension and lender terms
The comparison holds the selected gross amount, interest rate and fees constant for the planned whole-month period. It does not include daily accrual, a changing rate, an interest reserve funded by a separate facility, minimum interest, prepayment penalties, extension fees, staged draws, points tied to a lower rate, or fees you leave out. Confirm whether the term sheet charges the listed amount at closing or payoff and check the actual maturity payoff with the lender.
For one residential purchase-before-sale quote, see the US swing loan calculator .
To estimate a single commercial or investment facility, use the commercial bridge loan calculator .
To model a quote priced by the day, use the bridge loan per diem calculator .
Use the country-specific comparison page
This page is written for US bridge and swing loan terminology and uses US dollars. The country selector above the calculator opens a separate UK bridging loan comparison page with UK terminology, pounds, local examples and its own defaults. The pages remain separate even where their calculation methods overlap.
Inputs for the bridge loan comparison calculator
Gross loan amount in each quote
Use the same gross opening facility for both offers, before retained interest and withheld percentage fees.
Planned time to repay
Use the same expected holding period for both quotes. The comparison supports whole months from 1 to 60.
Quote A / Quote B interest rate
Copy the rate from each term sheet, then select whether it is per month, annual nominal or annual effective.
Rate quoted per
Annual nominal divides by 12; annual effective is converted to an equivalent monthly rate. No daily basis is assumed.
Interest method
Choose monthly interest-only payments, simple interest due at payoff, monthly compounding, or simple retained interest.
Origination fee (points)
Enter points as a percentage of gross loan. One point is 1% of the gross facility in this estimate.
Broker fee
Enter a percentage of gross loan, or zero. It follows the same withheld-or-separate choice as origination points.
Percentage fees taken
Choose whether origination points and broker percentage fees are withheld from proceeds or paid separately.
Other upfront costs
Enter fixed appraisal, legal, title, broker or other costs from the quote, then choose whether they are withheld.
Other costs paid
Choose whether fixed upfront costs reduce loan proceeds or are paid separately at closing.
Exit or payoff fee
Enter the exit fee as a percentage of gross loan. The fee is added to the amount due at payoff.
CALCULATOR QUESTIONS
US bridge loan comparison calculator questions
Is a bridge loan the same as a swing loan?
Swing loan is commonly used for short-term home-purchase financing before an existing home sells. Bridge loan also covers a wider range of commercial and investment uses. Check the loan purpose and terms rather than treating the labels as interchangeable.
How do I compare two US bridge loan offers?
Use the same gross amount and planned holding period, enter each quote's rate basis, payment method, fees and fee timing, then compare cost, proceeds and payoff together. Different proceeds mean the offers do not fund the same amount.
What are origination points?
Points are percentage-based charges. In this estimate, one origination point is entered as 1% of the gross loan; the actual term sheet sets the charge and when it is due.
Does the calculator determine APR?
No. It adds entered interest and fees for the planned period. It does not compute a statutory APR or assess eligibility.
What is cost per usable cash?
It divides entered finance cost by usable day-one cash after retained interest, withheld charges and separately paid upfront costs over the chosen hold. It is not annualized or APR. Fee timing alone does not change usable cash when the same fee is paid either way.
Does a lower cost mean Quote A or B is the best loan?
No. The comparison identifies only the lower entered finance cost. It does not weigh underwriting, conditions, service, extensions, property risk, or your financial situation.
Can I compare a US quote with a UK bridging offer?
Use the separate UK bridging loan comparison page for UK offers. Its country, currency, terminology and locally relevant content are different; the country selector opens that page.