About the Math

For a fully amortizing loan with principal P, monthly interest rate r, and total number of monthly periods n:

Payment  =  P × r / ( 1 − (1 + r)^−n )

Where r = annual rate ÷ 12 and n = years × 12. When r = 0, the payment reduces to P / n.

Total Cost  =  Monthly Payment × n
Total Interest  =  Total Cost − Principal

This represents the undiscounted nominal cost over the full term. It does not include origination, legal, or servicing fees — those should be added in your full underwriting model.

DSCR  =  Net Operating Income  /  Annual Debt Service

Conventional institutional ranges:

• < 1.25× — below typical covenant; refinance or restructure pressure
• 1.25× – 1.50× — adequate; thin cushion against NOI volatility
• > 1.50× — strong; institutional-grade cash flow coverage

The sensitivity chart flexes NOI from −20% to +20% in 5% steps to show how resilient the ratio is to operating income shocks.

Interest  =  Loan × Monthly Rate × Months
Exit Fee  =  Loan × Exit Fee %
Total Bridge Cost  =  Loan + Interest + Exit Fee

Bridge facilities are typically interest-only, so principal does not amortize during the term. The exit fee is charged once at payoff. This calculator does not model extension fees or default rates — model those separately if applicable.

Monthly Savings  =  Current Payment − New Payment
5-Year Savings  =  Monthly Savings × 60
Term Savings    =  Monthly Savings × n

Compares two amortizing schedules at the same balance and remaining term. It does not deduct closing costs, prepayment penalties, or yield-maintenance — net those against term savings to compute a true breakeven.

• Tax effects (interest deductibility, depreciation shields)
• Floating-rate scenarios with index resets or caps
• Cash-on-cash or IRR computations
• Loan-to-value or loan-to-cost sizing

DebtPeek is an analytical utility — a fast first pass, not a substitute for a full underwriting model or licensed advisor.