Free calculator
Commercial bridge loan calculator
A bridge loan on a value-add deal is sized off two caps at once — a share of what the project costs and a share of what it will be worth finished — and the lower one governs. This calculator sizes the loan both ways, then prices the hold: the monthly interest carry, the points and the exit fee, the all-in cost of capital, the sale price that breaks even, and the return on the equity you bring.
- 20,000+loan programs screened
- 5–8matches on a typical deal
- under an hourto the median first offer
- Zero upfrontto submit and compare offers
How is a bridge loan sized and priced?
Loan = lesser of (Cost cap × (Purchase + Rehab)) and (Value cap × ARV)
Cost of capital = Monthly carry × Months + Points + Exit fee
Breakeven sale = Purchase + Rehab + Cost of capital
What does a value-add bridge deal cost?
| Input | Value |
|---|---|
| Purchase price | $1,500,000 |
| Rehab budget | $400,000 |
| After-repair value | $2,300,000 |
| Hold period | 12 months |
| Interest rate | 10.50% |
| Origination points | 2.00% |
| Exit fee | 1.00% |
| Cost cap | 80.00% |
| Value cap | 70.00% |
- Total basis: $1,500,000 purchase + $400,000 rehab = $1,900,000.
- Cost leg: $1,900,000 × 80% = $1,520,000. Value leg: $2,300,000 × 70% = $1,610,000.
- The lower leg governs: a $1,520,000 loan, leaving $380,000 of equity.
- Carry: $1,520,000 × 10.50% ÷ 12 = $13,300 a month, or $159,600 over twelve months.
- With 2 points and a 1% exit fee the all-in cost of capital is $205,200.
- Breakeven sale: $1,900,000 + $205,200 = $2,105,200, leaving $194,800 of profit at the $2,300,000 finished value.
- Return on equity: $194,800 on $380,000, annualized over a twelve-month hold.
Annualized return on equity51.26%
The cost cap governs, so a stronger finished value would not raise this loan — only a smaller budget or a higher cost cap would. Every dollar the rehab runs over comes out of the $194,800, because the loan is already at its cap.
How do you read the result?
Read the breakeven sale price first. It is the number that decides whether the deal survives a soft exit: everything above it is profit, everything below it is a loss the equity absorbs. A plan that only works at the top of the comparable range is a plan with no margin for a slow leasing season or a contractor overrun.
The return figure is a return on equity, not an internal rate of return. It treats the whole equity as invested on day one and ignores when the rehab draws actually fund, which flatters a deal with a long draw schedule. Read it as a comparison between structures rather than as a promise about a specific outcome, and note that it says nothing about selling costs, which come out of the profit line.
What decides the bridge loan amount?
Two caps, and the lower one governs: a cost cap applied to purchase plus rehab, and a value cap applied to the after-repair value. The calculator names the governing leg so you can see whether more equity or a stronger appraisal is what changes the answer. On a deal bought well below its finished value the cost cap almost always binds.
Why is the cost of capital more than the interest?
Because a bridge loan is priced in three places. Interest accrues monthly on the drawn balance, origination points are charged at closing as a share of the loan, and many programs add an exit fee when it pays off. A quote compared on rate alone hides the other two, which is why this calculator rolls all three into one figure and puts it in the breakeven price.
What happens after you have the number?
A ratio tells you where the deal stands; it does not tell you which lender will like it. You describe the deal once — about five minutes — and it is screened against 20,000+ loan programs. Most deals return 5–8 matches, the median first offer arrives in under an hour, and there is Zero upfront; the fee is 0.50–1.00%, paid only at closing.
YieldStack is a commercial mortgage brokerage, not a lender. The rate, the leverage and the credit decision belong to the lenders competing for your deal; our job is making sure the right ones see it at the same time, so the terms you compare are real competition rather than one desk’s appetite.
Frequently Asked Questions
Why does the calculator show a return on equity rather than an IRR?
Because it treats all of the equity as invested on day one and ignores the timing of rehab draws, and that is the honest name for that arithmetic. A draw-by-draw internal rate of return needs the schedule your contractor and lender agree on.
Is this a bridge loan quote?
No. It is scenario math on the inputs you enter. The rate, the points, the exit fee and the caps themselves all come from a lender’s underwriting after a deal is submitted.
Does the profit figure include selling costs?
No. It is the finished value less the breakeven sale price, before commissions, transfer taxes and closing costs on the sale. Subtract those to get what actually reaches the sponsor.
What happens if the rehab runs over budget?
The overrun usually comes out of equity rather than the loan, because the loan is already sized at a cap. Raising the rehab figure here shows the effect on the breakeven price and the return before you commit to the budget.
Is YieldStack a lender?
No. YieldStack is a commercial mortgage brokerage, not a lender. Every term sheet comes from a lender in the network and is subject to that lender's underwriting.
Does it cost anything to see terms?
No. It costs Zero upfront to submit a deal and review offers; YieldStack's broker fee is 0.50–1.00% of the loan amount and is paid only at closing.
Is financing guaranteed?
No. Every credit decision is made by the lender; YieldStack arranges the introductions and negotiates on the borrower's side, and no loan, rate, or closing is guaranteed.
Where does YieldStack operate?
Nationwide. YieldStack arranges commercial real estate financing nationwide. Every deal is business-purpose commercial financing, and the broker fee is paid only at closing.
You have the number.Now get the quotes.
YieldStack is a commercial mortgage brokerage, not a lender.