Bridging loan calculator
Peak debt while you own both
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An estimate to help you plan, not an offer or approval. Lenders set their own policies, costs and limits.
Quick answer
This bridging loan calculator works out the peak debt while you own two properties at once, the end debt left after the existing property sells, peak debt as a share of both properties' combined value, and the net proceeds from the sale. You enter the purchase price, purchase costs, expected sale price, what's owed and your cash contribution. It assumes no interest rate.
Key points
- Peak debt is the figure bridging lenders size the loan on
- End debt is what you'll still owe once the sale settles, and it must be serviceable on its own
- Selling costs aren't deducted, so trim agent fees off your expected sale price
- Interest during the bridge is often capitalised, which grows the end debt
Buying the next property before the current one has sold puts a business in an awkward middle stretch: two titles, two sets of costs and one lender wanting to know how it all unwinds. Bridging finance covers that stretch. This calculator maps the debt across it so you can see the peak, the landing point and how much the sale has to deliver.
The five inputs
- Purchase price of the new property. The contract price of the premises or property you’re buying.
- Purchase costs. Stamp duty, legal fees and other settlement costs. Duty rules differ by state: Revenue NSW and Victoria’s State Revenue Office each publish their own, and Victoria is progressively moving commercial and industrial property from transfer duty to an annual property tax, so ask your conveyancer what applies to this purchase.
- Expected sale price of the existing property. Be conservative. If you’ll pay agent commission and marketing, take those off this figure, because the calculator doesn’t deduct selling costs.
- Owed on the existing property. Every loan secured against the property you’re selling.
- Cash or deposit you’re putting in. Savings, business cash or other funds contributed at purchase.
The four results
Peak debt while you own both. Existing loan + purchase price + purchase costs − your cash. It’s the highest point your borrowing reaches and the figure the lender sizes the facility around.
End debt after the sale. Peak debt less the sale price. Once settlement happens and the old loan is cleared, this is what remains on the new property. If the sale covers everything, it shows $0.
Peak debt as a share of both properties. Peak debt divided by the purchase price plus the expected sale price. Think of it as a combined loan-to-value ratio across both securities. Lower gives you more room if the sale price softens.
Net proceeds from the sale. Sale price minus what’s owed on the existing property: the equity the sale releases to pay down the bridge.
Worked example: a manufacturer moving to bigger premises (illustrative)
A Melbourne packaging manufacturer has outgrown its factory. It’s buying a $2.2 million warehouse with an estimated $130,000 in purchase costs and putting in $100,000 of its own cash. The current factory should sell for $1.4 million and has $520,000 owing.
| Result | Working | Figure |
|---|---|---|
| Peak debt | $520,000 + $2,200,000 + $130,000 − $100,000 | $2,750,000 |
| End debt | $2,750,000 − $1,400,000 | $1,350,000 |
| Peak debt share | $2,750,000 ÷ $3,600,000 | 76.4% |
| Net sale proceeds | $1,400,000 − $520,000 | $880,000 |
Now stress-test it. If agent fees of around $30,000 come off and the sale lands at $1.3 million, the effective sale figure is $1.27 million and the end debt climbs to $1.48 million. A lender will want evidence the business can carry that higher figure from trading income, not just hope that the market cooperates. Run the business borrowing power calculator on the end debt to check.
Thinking about a bridge for premises or property? Tell us the two addresses and the timeline. Asking costs nothing and leaves your credit history exactly as it is.
What lenders look at beyond these numbers
- The sale plan. Is the property listed, under contract or still a plan? A signed, unconditional contract is far stronger than an appraisal.
- Time to sell. Specialised industrial or rural property can take months longer than a suburban house.
- Capitalised interest. Many bridging loans add interest to the balance during the bridge instead of charging monthly repayments. That’s easier on cash flow but lifts the end debt. Our glossary entry on capitalised interest explains the mechanics.
- The end debt’s home. Will the remaining loan sit with the bridging lender or be refinanced into a longer commercial property loan? Agree that path before you sign.
Questions worth asking every bridging lender
Before comparing offers, get written answers to these:
- How long is the bridging period, and what happens if the sale takes longer? Ask about extension fees and whether the pricing changes after the agreed window.
- Is interest capitalised or paid monthly? And if capitalised, what’s the projected end debt at month six and month twelve?
- What valuation will you order on each property? A full valuation on a specialised factory can take longer than the purchase timeline allows.
- Do you need a signed contract on the existing property before settlement? Some lenders will bridge an unsold property; others want it under contract first.
- Who holds the end debt? Clarify whether it rolls into an ongoing loan with the same lender or must be refinanced elsewhere, and what that refinance needs.
Plug each lender’s answers into the calculator as a new scenario. Ten minutes of comparison here can save a painful surprise at month nine.
Bridging finance or something shorter?
If the gap is only weeks and the amount is modest, a caveat loan against one of the properties can sometimes do the job with less paperwork, at a higher cost per month. See bridging finance vs a caveat loan and the caveat loan calculator. For working out equity on either property, use the property equity calculator.
Ready to map the bridge with a person?
Two properties, two settlements and a sale you don’t fully control: it’s a lot to hold in your head. Send us the purchase price, the expected sale figure and your dates. A minute or so does it. We won’t run a credit check on an enquiry, and we keep your two-property story in-house instead of circulating it to every lender in town. A person who works on property-secured deals reads it and rings you back. The closer your numbers are to reality, especially the sale price after costs, the faster we can tell you which structure fits.
Frequently asked questions
What is peak debt in a bridging loan?
Peak debt is the highest total you'll owe, reached when you've bought the new property but not yet sold the old one. It's the existing loan plus the purchase price and costs, less any cash you contribute. Lenders compare it with the combined value of both properties.
What is end debt?
End debt is the loan left on the new property after the old one sells and its proceeds pay down the bridge. A lender needs to be confident the business can service the end debt from its income, because that loan continues long after the bridge ends.
Does the calculator include interest on the bridging loan?
No. It shows the debt structure only. Bridging interest is commonly capitalised, meaning it's added to the balance during the bridge, so ask each lender for the total cost over your expected selling period and add it to your end debt.
How long does a bridging period usually last?
Each lender sets the window in which it expects the existing property to sell, and it's agreed upfront in the loan terms. Commercial and specialised properties can take longer to sell, so a realistic sale timeframe matters as much as the price.
Can a business use bridging finance to move premises?
Yes. A common case is a business buying a larger warehouse, factory or office before it has sold its current premises. The lender looks at both properties, the sale strategy and whether the business can carry the end debt.