LIHTC tools

LIHTC equity bridge and pay-in schedule calculator

An equity bridge loan equals the equity a deal needs by a date minus the installments the investor has paid by then. Enter total equity, the pay-in schedule and when the money is needed; the tool sizes the bridge and estimates the interest carry until later installments repay it.

Total tax credit equity ($) From the credit estimator or capital stack builder.

Equity needed by then (% of total) To repay construction debt or close the perm loan.

Needed by month (from closing)

Bridge interest rate (%) An example, not a quote.

Pay-in schedule (example: use your partnership agreement)

Milestone	% of equity	Month
Milestone 1	Percent for milestone 1	Month for milestone 1
Milestone 2	Percent for milestone 2	Month for milestone 2
Milestone 3	Percent for milestone 3	Month for milestone 3
Milestone 4	Percent for milestone 4	Month for milestone 4
Milestone 5	Percent for milestone 5	Month for milestone 5

Bridge loan needed at month 20

$4,500,000

Interest carry about $168,750 at 7.50% until month 26.

Installment	Month	Amount	Paid in to date
Closing	0	$2,700,000	$2,700,000
Construction completion	20	$8,100,000	$10,800,000
Stabilization	26	$4,500,000	$15,300,000
8609s issued	32	$2,700,000	$18,000,000
Needed by month 20		$15,300,000	85% of equity

Get a financing quoteBridge-to-equity and construction loans.

As of October 30, 2026. Sources: arithmetic on your inputs only, no external figures (method in the equity bridge loans guide); IRS Form 8609 (the pay-in milestone). An estimate, not tax or legal advice.

The formula

Paid by month N = sum of installments due on or before month N Bridge = max(0, needed % x equity - paid by month N) Interest carry = sum over later installments of balance x rate x months outstanding / 12, with each installment repaying the bridge until it is gone

Worked example (the defaults)

$18,000,000 of equity paid 15% at closing, 45% at completion (month 20), 25% at stabilization (month 26) and 15% when the 8609s issue (month 32). The deal needs 85% by month 20, or $15,300,000, but has $10,800,000 in hand, so the bridge is $4,500,000. Stabilization pays it down to zero at month 26, so interest at 7.5% runs six months on $4,500,000: $168,750.

Questions people ask

Why do LIHTC deals need an equity bridge loan?

Investors pay their equity in installments tied to milestones such as closing, construction completion, stabilization and the IRS Forms 8609, while the construction loan usually has to be repaid at or soon after completion. A bridge loan, often secured by the investor's pay-in obligation, covers the timing difference.

What is a typical pay-in schedule?

It is negotiated in each partnership agreement, and 9% and 4% deals differ, so this tool takes yours. The defaults are an example only. Investors who pay more up front often pay a lower price per credit, which is why the schedule and the price are negotiated together.

How is the bridge interest estimated here?

Simple interest on the outstanding balance, month by month, with each later installment paying the bridge down until it is gone. It ignores fees, interest reserves and any interest earned on cash, which a lender's term sheet will set.

Can the bridge be part of the construction loan?

Often, yes. Many construction lenders size the loan to cover equity that arrives after completion and keep it outstanding until those installments come in. Ask for both structures and compare the all-in cost.