Commercial Bridge Loan Calculator Guide
This guide helps investors estimate payments, leverage, and loan structure for nationwide commercial bridge loans. Use these formulas to quickly size a deal before engaging a lender.
Step 1: Estimate Your Loan Amount
For acquisitions based on purchase price:
Loan Amount = Purchase Price × LTV
For value-add deals based on total cost:
Loan Amount = (Purchase Price + Renovation Budget) × LTC
Example: $3M purchase + $500K renovation at 80% LTC = $2.8M loan
Step 2: Estimate Your Monthly Payment
Since bridge loans are interest-only:
Monthly Payment = (Loan Amount × Annual Rate) ÷ 12
Example: $2.8M loan at 10% = $23,333/month
Step 3: Estimate Total Interest Cost
Total Interest = Monthly Payment × Loan Term (months)
Example: $23,333 × 18 months = $419,994 total interest
Step 4: Plan Your Exit Strategy
Before closing a bridge loan, model your exit clearly:
- Refinance into agency debt — requires stabilized occupancy and DSCR
- Refinance into DSCR loan — based on rental income, no income verification
- Sell after stabilization — capture value-add premium
- Bank refinance — for seasoned, stabilized assets
- CMBS refinance — for larger stabilized commercial assets
A clear, well-modeled exit strategy strengthens your loan application and gives the lender confidence in the deal.
