Bridging Loan Cost Calculator
Estimate the interest cost of a short-term bridging loan used to buy a new home before your existing property is sold.
Your results
Calculation breakdown
- Simple bridging interest
- peak debt × monthly rate × number of months
Worked example
A $700,000 peak bridging debt at 8% for 6 months accrues about $28,000 in interest before the existing home sells.
Assumptions
- Assumes interest-only, simple (non-compounding) interest on the peak debt for the whole bridging period.
- Excludes bridging loan establishment fees, which vary by lender.
How this calculator works
This calculator estimates the interest cost of a bridging loan over an expected number of months, based on the peak debt carried between settling on a new property and selling your existing one.
Frequently asked questions
How is interest usually charged on a bridging loan?
Many bridging loans charge interest only during the bridging period, often capitalised so no repayments are needed until the existing property sells; this calculator estimates that accrued interest.
What happens if my existing home takes longer to sell?
Interest continues to accrue for as long as the peak debt is outstanding, so a longer sale period increases the total cost; use a longer bridging period to model this risk.
Are there other costs besides interest?
Yes, bridging loans can carry establishment fees and higher ongoing rates than a standard mortgage; check your lender's fee schedule and add these separately.
Editorial review and responsibility
Reviewed by the CalcAussie editorial team on 21 September 2026. Review scope: Method, Australian terminology, material assumptions, source links and user-facing limitations.
Calculator results remain estimates based on the figures entered. Check material decisions against current official information and report a suspected error so it can be reproduced and corrected.
Results are estimates only and are not financial, tax, legal or credit advice.