Useful next calculations
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 worked example
These are the example figures the calculator opens with.
| Input | Value |
|---|---|
| Loan Amount (£) | £200,000 |
| Monthly Interest Rate (%) | 0.75% |
| Loan Term (Months) | 6 months |
| Arrangement Fee (%) | 2% |
For those figures the calculator returns:
- Monthly interest: £1,500.00
- Total interest: £9,000.00
- All costs: £13,000.00
- Total cost: 6.50%
How to read your results
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.
Method & assumptions
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.