Calculator
Bridging loan calculator
The headline rate tells you very little. This calculator shows what a bridge actually costs, and crucially, how much cash actually lands in your account on day one.
The gap between the gross loan and the net day-one advance is the most misunderstood number in bridging. With retained interest and a 2% fee, a £350,000 gross facility can put barely £300,000 in your hands at completion. Always plan your deal around the net figure, not the headline.
Bridge pricing moves with LTV, asset type and exit certainty. We will get you an indicative term sheet, gross and net, within 24 hours.
How this calculator works
A bridging loan has three moving parts: the monthly interest rate, the fees, and the way interest is treated. This calculator models all three so you can see the full cost of credit over your chosen term, not just the rate a lender quotes on the phone.
The treatment of interest matters more than most borrowers realise. With retained interest, the lender calculates the full term's interest on the gross loan and deducts it on day one, alongside the arrangement fee. You pay nothing monthly, but the cash you actually receive at completion, the net advance, can be 12 to 15 per cent lower than the gross facility. With rolled-up interest, nothing is deducted up front; instead interest is added to the balance each month and compounds, so the redemption figure grows over the term. With serviced interest, you pay each month from income, the way you would on a mortgage, and the balance stays flat, but lenders will want evidence you can afford the payments.
The single most misunderstood number in bridging is the difference between the gross loan and the net advance. Borrowers routinely agree a purchase based on the gross figure, then discover at completion that retained interest and fees have taken a large slice out of it. Always build your deal around the net number this calculator shows you.
We have also included an effective annual cost figure, which annualises the total cost of credit against the gross loan. It is a fairer way to compare a 9-month bridge at 0.85 per cent per month with a 15-month bridge at 0.79 per cent, because it captures fees as well as interest. Two bridges with the same monthly rate can have very different true costs once arrangement and exit fees are included.
Pricing in practice depends on gross LTV, the asset, your experience and, above all, the strength of your exit. Read more about how we place these deals on our bridging loans page, and if your exit plan is still taking shape, our guide to bridging loan exit strategies covers the routes lenders will and will not accept.