Transitional
Bridge to permanent
Does the exit retire the bridge?
Sizes a bridge loan on cost including the capital budget, funds the interest reserve for the full term, then tests the stabilised exit at both loan-to-value and coverage to see whether it pays the bridge off.
Every default here is an illustrative figure chosen to be plausible. Nothing on this page is a rate sheet, a quote or an offer, and no licence or NMLS number exists to attach to it.
Total cost——
Bridge loan——
Interest reserve——
Exit surplus——
Does the exit retire the bridge?
Illustrative—
Exit proceeds against the exit cap rate
The bridge balance is a flat line. Everything above it is surplus and everything below it is a capital call. This is the chart that decides whether a bridge is the right instrument.
Exit loan available Bridge payoffShaded where the exit falls short
Sources and uses
| Line | Amount | % of cost |
|---|
Assumptions on this page
- Interest is reserved at closing on the full loan amount for the term plus the extension you set, which is conservative — a reserve sized on average outstanding would be smaller and would run out sooner.
- The exit loan is the lesser of the LTV test on stabilised value and the coverage test at the exit rate and amortisation, which is how a take-out lender will actually size it.
- No exit costs, no prepayment on the bridge and no lease-up shortfall are deducted.
- Illustrative arithmetic. The exit rate default is deliberately above the bridge-market convention because modelling an optimistic exit is how bridges go wrong.
Other calculators
- Start hereLoan sizingHow large a loan does this property actually support — and which test is stopping it?
- CoverageDSCR & debt yieldDoes the income cover the debt, and by how much?
- ScheduleAmortisation & balloonWhat is the payment, and what is still owed on the maturity date?
- ValuationCap rate & valueWhat is this income worth, and what does the price imply?