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Bridging Loan Calculator

Calculate bridging loan costs including monthly interest, arrangement fees and total cost of borrowing.

Last reviewed 15 August 2026

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Calculator inputs

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When to use this calculator

  • Before comparing personal loan or credit offers on the same amount and term.
  • When you want to see total interest, not only the monthly payment.
  • When you are choosing between a shorter term and a lower monthly debit.
  • When you need a planning estimate before making a credit application.

A realistic UK planning example

Use these sample inputs as a quick scenario test, then change one variable at a time to compare outcomes.

A realistic UK planning example
InputValue
Loan Amount (£)£200,000
Monthly Interest Rate (%)5%
Loan Term (Months)£200,000
Arrangement Fee (%)2

After entering these figures, review monthly interest, total interest and all costs together rather than in isolation. Then rerun the tool with one input adjusted.

How to read your results

Monthly Interest

The figure produced by this output for the inputs you entered. Change one variable at a time if you want to see what drives it.

Total Interest

Additional amount paid above the original principal during the term, using the rate you entered. Fees and early-repayment charges are not included unless you added them.

All Costs

The figure produced by this output for the inputs you entered. Change one variable at a time if you want to see what drives it.

Total Cost

The headline outcome of this calculation. It is most useful when read alongside the supporting metrics rather than in isolation.

Method & assumptionsAuthoritative sources

This calculator estimates the total interest cost of a bridging loan based on the loan amount, monthly interest rate, and term in months. It applies simple or compounded interest depending on whether a rolled-up or serviced structure is selected. Bridging finance in the UK is offered by specialist lenders and is typically arranged at a loan-to-value ratio of up to 75% of the property's open market value, though some lenders will consider higher LTVs in specific circumstances. Arrangement fees — commonly 1% to 2% of the loan — and exit fees are not included in the basic interest calculation but can add substantially to the overall cost. This tool is for illustrative purposes; always obtain a formal illustration from a regulated bridging lender or broker.

Common mistakes

  • !Judging an offer by the monthly payment alone and ignoring total interest.
  • !Using a representative APR as if it were a guaranteed personal rate.
  • !Forgetting arrangement fees or early-settlement terms.
  • !Comparing two loans that do not use the same amount and term.

What to do next

  • Compare offers using the same amount and term, then check total repayable.
  • Add fees and read early-settlement terms before treating the estimate as the full cost.
  • Test a shorter term to see whether a higher payment is worth the interest saved.
  • If several debts are involved, use a consolidation or payoff planner next.

Frequently asked

Bridging loans typically charge 0.5–1.5% per month (6–18% annually). Rates depend on LTV, loan size, and the exit strategy.

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