How to Use the Bridging Loan Calculator
Enter your security and the cash you need, then choose how interest is charged. The gross loan, net advance and total repayable update instantly, so you can test the trade-offs before you approach a lender.
- Property value and charge. Enter the value of the security. Choose first charge for a clean property, or second charge if there is an existing mortgage, in which case add the outstanding balance so the loan-to-value reflects both charges.
- Loan amount. Switch between net and gross. Enter net if you know the cash you need to receive; the calculator grosses it up to cover fees and retained interest. Enter gross if a lender has quoted the total facility.
- Property / use type. Selecting the type sets an indicative monthly rate and a maximum loan-to-value for that security. Both are starting points, not quotes.
- Monthly interest rate. Bridging is priced as a monthly rate, not an APR. Use a lender quote if you have one, or keep the indicative default for your property type.
- Loan term. Drag from 1 to 24 months. Regulated bridging is capped at 12. A longer term raises the total interest on every structure.
- Interest type. Choose retained, rolled-up or serviced. This is the single biggest driver of how much cash you receive on day one and how much you repay at exit.
- Arrangement fee. Enter it as a percentage of the gross loan. It is deducted from the advance you receive, so a higher fee leaves you with less cash on day one. Adjust it to match your quote.
What the Bridging Loan Calculator Shows
Seven figures, each answering a different question about the loan. The two that matter most are the net advance, the cash you actually receive, and the total repayable, the amount you settle at exit.
The total facility the lender sets up. Fees and, on retained loans, interest are taken from this figure. Loan-to-value is measured against it.
The cash that reaches you on day one, after the arrangement fee, admin fee and any retained interest are deducted from the gross loan.
On a serviced loan, the interest you pay each month. On retained and rolled-up loans there is no monthly payment; interest is settled at exit.
The full interest cost across the term. On a rolled-up loan this is higher than rate times term because interest compounds month on month.
The arrangement fee, valuation, legal, admin and any exit fee added together, so you can see the non-interest cost in one number.
The amount due when the bridge is redeemed at exit: the gross loan plus rolled-up interest where it applies, plus any exit fee.
Everything borrowing this money costs you: interest plus all fees. This is the figure to compare when you weigh one structure or lender against another.
Bridging Loan Cost Example
Here is how the numbers come together on a typical short bridge. The example below is a £250,000 gross loan over 9 months on a rolled-up structure, with a 2% arrangement fee and standard valuation and legal costs.
Example: a £250,000 bridging loan over 9 months
| Loan amount (gross) | £250,000 |
| Term | 9 months |
| Monthly interest rate | 0.85% |
| Interest method | Rolled-up (compounded) |
| Arrangement fee (2%) | £5,000 |
| Valuation and legal fees | £2,400 |
| Total interest | £19,788 |
| Total fees | £7,400 |
| Total repayable at exit | £269,788 |
Because the interest rolls up, the £250,000 grows to roughly £269,788 by month nine. The arrangement fee and the valuation and legal costs sit on top of that, taking the all-in cost of borrowing to around £27,188. Switch the same loan to retained interest and the cash you receive on day one falls, because the full interest bill is deducted up front instead of at the end. The calculator above lets you run your own figures against all three structures.
How Bridging Loan Costs Are Calculated
Every figure in the calculator comes from the formulas below. Bridging interest is charged monthly, and the structure you pick decides whether you pay it up front, at the end, or month by month.
monthly interest = gross loan × monthly rate
The starting point for every structure. A £250,000 loan at 0.85% costs £2,125 of interest in a single month.
exit balance = gross loan × (1 + monthly rate) ^ term
Interest is added to the balance each month and itself earns interest, so the total is a little higher than rate times term. Repaid in full at exit.
total interest = gross loan × monthly rate × term
The whole interest bill for the term is calculated up front and deducted from the gross loan at drawdown. There is no monthly payment and nothing extra to pay at exit beyond the gross.
total interest = gross loan × monthly rate × term
You pay the monthly interest each month and repay the gross loan at exit. The same total interest as retained, but paid as you go rather than deducted on day one, which maximises your day-one cash.
arrangement fee = gross loan × fee rate
Typically around 2% of the gross loan. It is deducted from the advance, so it reduces the cash you receive rather than being billed separately.
exit fee = gross loan × exit rate
Most modern bridging products charge no exit fee, so this is usually zero. Where it applies, it is added to the amount you repay at the end.
other fees = valuation + legal + admin
Fixed amounts rather than percentages. Valuation and legal fees are normally paid separately; the small admin or telegraphic transfer fee is taken from the advance.
What Affects Your Bridging Loan Cost
Two loans of the same size can cost very different amounts. These are the factors that move the rate you are offered and the total you repay.
- Loan-to-value. The higher your loan against the property value, the higher the rate and the greater the chance of a lower advance. The cheapest pricing sits well below the maximum LTV.
- Loan term. Bridging is charged monthly, so every extra month adds interest. Rolled-up interest also compounds, so a longer term costs slightly more than a simple multiplication suggests.
- Property type. Standard residential is priced keenest. Semi-commercial, commercial and land carry higher rates and lower maximum LTVs because they are harder to value and sell.
- Regulated or unregulated loan. Regulated bridging, where you or family occupy the security, is FCA-regulated, capped at 12 months, and at some lenders is retained-interest only. Unregulated runs to 24 months with all three structures.
- First or second charge security. A second charge sits behind an existing mortgage, so the lender takes more risk and prices higher. Combined loan-to-value is usually capped lower than for a first charge.
- Exit strategy. A clear, evidenced exit, an agreed sale or a refinance offer, gets better pricing than a vague plan. Lenders price the risk of the bridge not being repaid on time.
- Credit history. Adverse credit does not always block a bridge, but it raises the rate. Specialist lenders consider non-status cases at a premium.
- Speed of completion. A rushed completion can mean a dual-legal arrangement or an automated valuation to save time, which changes the fee profile rather than the interest.
What the Calculator Does Not Include
The result is an indicative estimate, not a quote. Several real costs and conditions sit outside any calculator and only surface once a lender underwrites your case.
- Lender-specific underwriting. Each lender prices risk differently. Your actual rate, fee and maximum advance come from their assessment of you and the security, not from a default figure.
- Broker fees, if charged separately. Some brokers charge a fee on top of the lender's costs. That is not modelled here.
- Legal delays. Slow searches or a complex title can extend the term, and extra months mean extra interest.
- Valuation changes. A surveyor may value the property below your figure, which lowers the advance and raises the effective loan-to-value.
- Extension fees. If you cannot repay at the agreed exit, extending the bridge usually carries a fee and continued interest.
- Early repayment charges. Some products apply a minimum term, often one month's interest, even if you redeem early.
- Product availability. The rate and structure you want may not be offered for your property type, location or circumstances.
Repaying a Bridging Loan
A bridge is short-term finance, so the lender wants a clear plan for clearing it, your exit, before they lend. There are a handful of standard routes.
Sale of property. You sell the security, or another asset, and use the proceeds to redeem the loan. The most common exit on refurbishment and flip projects.
Refinance. You replace the bridge with longer-term finance, such as a buy-to-let mortgage or a commercial mortgage, once the property qualifies for it.
Development completion. On a refurbishment or build, the work is finished, the property is revalued at its higher figure, and you exit onto a term product or a sale.
Open vs closed exit. A closed bridge has a fixed, evidenced repayment date, such as an exchanged sale, and is priced more keenly. An open bridge has a planned but unfixed exit and carries a small premium for the added uncertainty.
Your exit shapes the rate you are offered, so it is worth getting it straight before you apply. For a deeper walk through each route and how lenders assess them, see our guide to bridging loan exit strategies.
Frequently Asked Questions
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How is the cost of a bridging loan calculated?
Bridging interest is charged as a monthly rate on the gross loan, not as an APR. The base cost is the gross loan multiplied by the monthly rate, multiplied by the number of months. On a rolled-up loan the interest compounds, so the total is a little higher. On top of interest you pay an arrangement fee, usually around 2% of the gross loan, plus valuation, legal and a small admin fee. The calculator above adds these together to show your total cost of borrowing.
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What is the difference between gross and net on a bridging loan?
The gross loan is the total facility the lender sets up, and it is the figure your loan-to-value is measured against. The net advance is the cash that actually reaches you, after the arrangement fee, admin fee and, on a retained loan, the full interest bill are deducted. Lenders cap LTV on the gross figure, but borrowers think in net terms, so the calculator grosses up from the net cash you need to make sure the facility is large enough to cover the deductions.
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What monthly interest rate should I use?
Use a lender or broker quote if you have one. If you are planning ahead, the indicative default for your property type is a reasonable starting point: around 0.75% a month for residential investment, 0.85% for refurbishment, and higher for semi-commercial, commercial and land. Standard first-charge residential can come in lower, near 0.55% to 0.6%, at competitive LTVs. Adverse credit, high LTV or unusual security all push the rate up.
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Do bridging loans have exit fees?
Most modern bridging products charge no exit fee, which is why the calculator defaults the exit fee to zero. Some older or specialist products still apply one, usually a percentage of the gross loan or a minimum of one month's interest, even on early redemption. Always check your offer. If your product carries an exit fee, enter it in the calculator and it will be added to the total repayable.
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How is loan-to-value worked out on a bridging loan?
Gross loan-to-value is the gross loan divided by the property value, expressed as a percentage. On a second charge, the existing mortgage balance is added to the gross loan first, so the LTV reflects the total debt secured against the property. First-charge residential bridging typically reaches around 75%, commercial around 70%, and land lower still. The gauge in the calculator shows your LTV against the indicative maximum for the property type you choose.
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What is the difference between retained, rolled-up and serviced interest?
With retained interest, the lender calculates the whole interest bill for the term and deducts it from the gross loan up front, so you make no monthly payments but receive less cash on day one. With rolled-up interest, nothing is paid monthly either, but the interest compounds onto the balance and the larger total is repaid at exit. With serviced interest, you pay the interest each month and repay the loan at exit, which maximises your day-one cash but requires a monthly income to cover the payments. Retained is common on refurbishment; serviced suits borrowers with reliable cash flow.
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Can I use this calculator for a regulated bridging loan?
Yes. Switch the regulated toggle to "Regulated" and the term caps at 12 months, in line with FCA rules for bridging on a property you or your family occupy. Regulated bridging at some lenders is offered on a retained-interest basis only. The cost maths is the same; the difference is the regulatory framework, the term cap and the consumer protections that come with it. For investment or commercial property you do not live in, leave the toggle on unregulated.
Ready to see real bridging quotes?
Once your figures look workable, the next step is a tailored quote from a lender that handles your property type and exit. Compare your options in a few minutes.
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How we built this calculator
The default rates, maximum loan-to-value figures and fee norms are drawn from BusinessExpert's reviews of eight UK bridging lenders, with rates verified against lender product guides and broker platform data in May 2026 and re-checked in June 2026. The calculator uses the standard bridging cost formulas: a monthly interest rate applied to the gross loan, with retained, rolled-up and serviced structures handled exactly as lenders treat them, and a gross-up calculation so a net cash requirement produces a facility large enough to cover fees and retained interest. Every default is indicative and editable; your actual terms come from a lender's underwriting.