Bridging Loan Calculator:
Find out how much a Bridging Loan costs.

Bridging Loan Calculator

  • Bridging Loan Calculator
  • Bridging Loan Calculator
Bridging Loan Calculator
  1. Loan amount required

    The loan amount required is also known as the total 'net' loan amount that you want to borrow.

    This is the amount you are expecting to receive before interest or any other charges have been added.

  2. Loan term

    This is the number of months that you'd like the loan for.

  3. Properties used as security

    Please enter the number of properties that you'd like to use as security for the loan.

  4. Property 1: Value

    The current market value of the property being used as security.

  5. Property 1: Mortgage balance

    If you have any mortgages or other secured loans on this property please total the outstanding value here. Note: We only need to know the total loan existing balance that will still be outstanding upon receipt of the bridging loan, so if you're intending to take a bridging loan to consolidate those other mortgages etc then the balance outstanding upon receipt of the bridging loan would be 0.

  6. Interest rolled up or paid monthly?

    Rolled up interest means the interest is charged at the end of each month and then added to the loan balance. Another term for this is compounded monthly interest. This is the normal interest charging method for bridging loans. It's then paid when the loan is redeemed.

    Pay monthly means that the interest is charged and paid at the end of each month. Another term for this is serviced interest. It's not added to the loan facility.

Your Loan Example

Net loan amount -

Loan amount required before interest, fees or any other costs have been added.

Broker fees (2%)-

Calculated as a percentage of the net loan amount. Amount of broker fee is illustrated, and the percentage charged is shown in brackets.

Lender facility fee (2%) -

Calculated as a percentage of the net loan amount. Amount of facility fee is illustrated, and the percentage charged is shown in brackets.

Net loan including fees -

This is the net loan amount plus fees.

Monthly interest rate -

Monthly rate of interest charged on the loan facility.

Average monthly interest -

This is the average monthly amount of interest charged based on the full term of the loan. Interest is calculated on the loan balance each month and then added to the facility.

Interest if the loan runs the full term -

This is the total amount of interest that will be charged if the loan is cleared at the end of its term.

Loan to value (LTV) -

This is calculated using the loan amount plus any mortgages left in place, and the total value of the properties used as security.

Other fees

These fees are incorporated into 'Net loan including fees' shown above.

Valuation fees -

This is the estimated cost if a full valuation is required on the properties offered as security. This figure maybe reduced if a desktop, drive by or existing valuation is sufficient for the lender.

Lenders administration fee -

Most lenders charge administration fees, the amount of which can vary. The fee shown is for a typical plan.

Estimated lender legal costs -

Borrowers are required to pay all legal fees incurred in relation to arranging their loan.


Lenders are charged a CHAPS fee for sending the proceeds of the loan to their solicitor. They claim this charge back from the borrower.

Loan settlement

Redemption administration fee -

Lenders charge an admin fee to remove their charge over the property when a loan is repaid.

Exit fee (0%) -

Some loan plans have exit fees. Almost all of our loans do not.

Redemption amount at full term -

This is the estimated amount required to repay the loan if it runs the full term.

Bridging Loan Calculator updated on 30 May 2024 to reflect the latest rates and lender's loan-to-value (LTV).

Our bridging loan calculator makes it easy to see whether a bridging loan is viable. If you'd like a FREE no-obligation finance proposal or to discuss your requirements with a bridging specialist, speak to our experts.

Email [email protected] or call 01202 612934

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Calculator on yellow background with text overlaid. Text reads Bridging Loan Calculator. What does it cost? What are the rates? How does it work?

2024 Bridging Loan Calculator Guide

Find out what a bridging loan calculator does, how to calculate your bridging loan and how the interest and fees impact your loan.

This guide explains how to use it and how the calculations are typically worked out. It offers helpful information and insights, especially for first-time bridging loan users.

Using Bridging Loan Calculators

Bridging Loan Calculators offers a convenient means to estimate the costs associated with short-term loans, aiding individuals and businesses in financial planning. These calculators, available in various formats such as web-based or spreadsheet, consider essential parameters like loan amount, term, and interest rate to provide estimates. However, their accuracy hinges on factors like simplicity of inputs, standard assumptions, and the exclusion of certain fees. Alternatives to these calculators include consulting with financial advisors for tailored guidance, working with bridging loan brokers for personalised recommendations or directly contacting lenders to explore options. Each avenue offers distinct advantages in navigating the complexities of bridging finance, ensuring informed decision-making tailored to individual needs.

Bridging Loan Calculator explained

A Bridging Loan Calculator is a tool used to estimate the costs of short-term loans. It’s available in different technologies, such as embedded in a web page or a spreadsheet (Excel). It aims to estimate bridging loan costs from user inputs, such as loan amount, loan term, and interest rate. To give a more accurate estimation, our bridging loan calculator also considers the type of interest method (rolled up or serviced) and property value to calculate the loan amount. 

What is a Bridging Loan Calculator?

A Bridging Loan Calculator is a financial tool designed to help individuals and businesses estimate the costs of obtaining a bridging loan. Bridging loans are short-term loans intended to provide quick financing until a permanent funding source is secured or the debt is repaid. The most common repayment strategy is through refinance, such as arranging a mortgage or another bridging loan or the cash proceeds generated via property sale.

A bridging loan calculator allows users to input at least 3 key variables. These are listed below.

  1. Loan Amount: The total amount of money you wish to borrow.
  2. Loan Term: The duration for which the loan will be held, usually in months.
  3. Interest Rate: The interest rate applied to the loan can be provided as a monthly or annual rate.

Based on these inputs, the calculator can provide several important figures.

  1. Net loan amount: The money you wish to borrow before any fees are added.
  2. Broker fees: The fee charged by the broker for arranging the loan.
  3. Lender facility fee: The fee charged by the lender for arranging the loan.
  4. Monthly interest rate: The rate of interest applied to the loan each month.
  5. Average monthly interest: The interest amount applied each month to the loan.
  6. Interest if the loan runs the full term: The total interest if the loan is repaid at the end of the term.
  7. Loan-to-value (LTV): This is the equity available in the property, calculated by dividing the loan amount by the property value and multiplying by 100.
  8. Gross loan: The sum of the net loan plus the broker fee and lender facility fee.

Other fees

Aside from the interest, broker and lender arrangement fees of a bridging loan, in the UK, it typically comes with a range of additional costs to be aware of. These include valuation fees, legal fees, stamp duty, early repayment charges and exit fees.

Valuation fees: This estimates the fees for preparing a property valuation report. It is the estimated cost of fully valuing the properties offered as security is required. This figure may be reduced if a desktop valuation, drive-by, or existing valuation is sufficient for the lender.

Lenders administration fee: Some lenders impose a processing fee to cover the cost of processing a loan application. The amount can vary, so the fee shown is an average.

Estimated lender legal costs: This is the fee that lenders charge to cover their legal expenses. The amount can vary, so the fee shown is an average.

CHAPS Fee: Lenders are charged a CHAPS fee for sending the loan proceeds to their solicitor. They claim this charge back from the borrower. 

How the extra costs and fees are worked out

Valuation fees: Valuation fees cover assessing a property's value and condition, which is required to determine how much they are willing to lend against it. Desktop valuations can sometimes be used instead of an in-person survey, eliminating the cost altogether or significantly reducing it by saving up to several thousand pounds. Whilst every in-person valuation will be completed by an RICS valuer, some lenders require it to be completed by someone on their valuation panel. For this reason, before getting a valuation on a property, it's worthwhile to know which valuer your lender will want to use. Asking whether you can have a copy of the valuation report could also benefit you in the future. Should that lender not approve your finance, you could potentially negate further valuation fees as some lenders are willing to use valuations, providing they're within a certain time frame, i.e. less than 3 months old. This, however, is typically only applicable to residential bridging loans. Fees for in-person valuations vary depending on the size and complexity of the property but can range from one to several thousand pounds. 

Legal fees: Legal fees cover the cost of legal advice and customary paperwork associated with a loan. Depending on the situation's complexity, these fees can range from several hundred to several thousand pounds.

Early repayment charges (ERC): Some lenders impose early repayment charges (ERC) if you pay off your loan before its due date. Depending on how early the loan is repaid, these charges can range from 1% to 5%.

Exit fees: Exit fees are charged by some lenders when you pay off your loan. These are typically 1% of the amount outstanding at the time of repayment.

It's also worth noting that not all lenders charge all fees, and some lenders have different ways of charging the abovementioned fees.

What’s the difference between a Bridging Loan Calculator and a Broker Proposal?

A Bridging Loan Calculator and a broker Proposal differ significantly in their specificity and purpose in the loan acquisition process. A Bridging Loan Calculator is an online tool used by potential borrowers to quickly estimate the cost of a bridging loan, including interest and possible fees, based on generic inputs like loan amount and duration. It offers a preliminary, impersonal overview without considering detailed financial circumstances. In contrast, a bridging loan broker Proposal is a comprehensive document prepared by a financial broker that details tailored loan options for a client. 

A proposal considers your financial situation, needs, and objectives and includes recommendations for suitable loan products, terms, and conditions. It is a customised strategy intended to guide you through the lending process, often with a higher likelihood of loan approval. A broker proposal is typically sent to you early in your enquiry to provide a realistic understanding of your bridging loan in the current market. If the proposal meets your approximate expectations, you’re happy with the outline figures and wish to proceed with the application. The next step is for your broker to approach several lenders and obtain an offer.

Bridging Loan Calculator vs a DiP or AiP.

A Bridging Loan Calculator and a bridging lender's Decision in Principle (DiP) or Agreement in Principle (AiP) serve different purposes in the loan application process. A Bridging Loan Calculator is a tool that allows borrowers to estimate the potential costs associated with a bridging loan. It provides a quick, indicative quote but does not consider the borrower's creditworthiness or other financial details. In contrast, a bridging loan lender’s DiP or AiP is a preliminary assessment by a lender that evaluates a borrower's circumstances, collateral information, credit history and financial information to determine if they will likely be approved for a loan and under what terms. While a DiP or AiP is more personalised and indicative of actual loan approval, it is still non-binding and subject to a full credit and risk assessment.

How accurate are Bridging Loan Calculators?

Bridging Loan Calculators only provide a general estimate of the costs associated with a bridging loan, and their accuracy will vary significantly based on several factors, such as simplicity of inputs, assumptions made, the inclusion or otherwise of other fees, and the interest rate variability. Let’s look at how each of these affects bridging loan calculators.

  1. Simplicity of Inputs. These calculators often require minimal input—usually the amount of the loan, the expected term, and sometimes the expected interest rate. They typically do not account for more complex variables like credit history, property value, or specific lender fees.
  2. Standard Assumptions. Calculators generally use standard assumptions to estimate costs. These assumptions may not reflect the actual terms available in the market or specific terms offered by individual lenders based on a borrower's unique circumstances.
  3. Exclusion of Fees. Many calculators might not include additional costs such as arrangement fees, legal fees, or valuation fees, which can significantly affect the total cost of the loan.
  4. Interest Rate Variability. The interest rates in these calculators may be indicative and not tailored to the collateral type, borrower's specific circumstances or market fluctuations.

Generally speaking, while Bridging Loan Calculators are useful for quickly understanding potential loan costs, they should not be solely relied upon for making financial decisions. For more accurate and comprehensive financial planning, consulting with a broker or financial advisor who can provide a personalised assessment will provide a more accurate understanding of costs.

Do I need to use a different calculator for Commercial vs Residential?

Yes, to improve the cost estimation accuracy, the calculator should consider whether the collateral is commercial or residential. Collateral is one of the most significant factors in a bridging loan and influences the calculation of costs. Interest rate, maximum loan-to-value, lender risk, regulation and compliance, and borrower checks are all influenced by whether the collateral you use to secure your bridging loan is commercial or residential.  

Commercial loans typically have higher interest rates and fees, lower loan-to-value (LTV) ratios, and vary in terms based on factors like tenant occupancy and business operations, reflecting their higher perceived risk and complex valuation. In contrast, residential loans focus more on the property value, available equity and credit history. Additionally, whether or not your collateral is your primary residence will influence regulatory requirements, influencing their respective terms and conditions. Hence, using a specialised calculator that accounts for this ensures more accurate and relevant financial estimates tailored to the specific loan characteristics.

Do I need to use a different calculator for Regulated vs Unregulated?

The calculator should consider whether the loan will be regulated or unregulated to obtain an accurate cost. Regulated and unregulated bridging loans differ in cost calculations due to their distinct regulatory and risk profiles and the differing interest rates each attracts. As such, using different calculators for regulated and unregulated bridging loans, or one that takes whether the loan is regulated into account, is advisable. A regulated bridging loan is when the collateral is your primary residence. Therefore, the loan must adhere to stricter lending criteria and consumer protections, which affects their terms, interest rates, and fees. In contrast, unregulated loans, often for commercial or investment properties, offer more flexibility and typically carry higher lender risks and different fee structures. Calculators must consider the loan type to ensure that estimates accurately reflect each loan’s specific constraints and requirements, enhancing financial planning accuracy.

Do I need to use a different Bridging Loan Calculator in different countries in the UK?

When using a Bridging Loan Calculator in the UK, whether in England, Scotland, Wales, or Northern Ireland, you typically don't need a different calculator for each region. However, there are some regional considerations to keep in mind.

  1. Regulation and Legal Frameworks. The legal frameworks concerning property transactions vary between Scotland, Wales, and Northern Ireland. For example, Scotland's property law differs significantly from England and Wales's, particularly regarding the conveyancing process.
  2. Stamp Duty Land Tax (SDLT) and Other Taxes. Different tax implications exist across regions. In Scotland, the Land and Buildings Transaction Tax (LBTT) applies, while in Wales, the Land Transaction Tax (LTT) replaces SDLT. These differences might not be directly calculated in a generic bridging loan calculator but are crucial for the overall cost implications of the loan.
  3. Property Prices and Market Dynamics. The property market varies significantly, affecting the loan terms, interest rates, or the amount you can borrow. Some calculators provide options to input region-specific data to accommodate these differences.
  4. Local Fees and Costs. Other local fees, such as valuations, solicitor fees and transaction costs, differ from country to country and should be considered part of the overall cost of obtaining a bridging loan.

Most online bridging loan calculators provide a generic tool that estimates the basic figures like loan amount, duration, and interest rates. If you need a more detailed proposal that considers regional differences, especially concerning taxes and legal fees, contact a bridging loan broker (like us) who understands the specifics of your region's property market and regulations.

How much can I borrow with a bridging loan?

The amount you can borrow is mainly determined by the equity in the collateral you’ll use to secure your loan and the property type of that collateral. For a single residential property, you can achieve up to 80% LTV, so for every £100,000 of available equity, you can cash out £80,000. The maximum LTV is 65% for commercial property or £65,000 for every £100,000 of available equity. The maximum LTV is 70% for land with planning permission or 50% without. So that’s £70,000 and £50,000 respectively, for every £100,000 of available equity.

You can get 100% of the loan amount you want when you provide additional collateral with enough equity. For example, suppose you wanted a loan for £1,000,000 and had several residential investment properties with a combined value of £1,250,000 in available equity. You’d meet the 80% LTV to achieve a £1,000,000 loan in that case. However, it is important to understand that this is the gross amount, not the net loan. You’d need to deduct your interest and other fees from the gross loan to calculate the net loan amount (the amount you’d receive in cash). The higher the interest rate and fees, the lower the net loan.

How do I maximise my loan amount?

Sourcing the lowest possible interest rate is the best method of maximising your loan amount. As interest rates are the largest bridging loan cost, securing the best rate possible makes sense. Interest rates charged represent the risk your loan presents to a lender. The lower the risk, the lower the rate.

Here are 3 tips to maximise your loan amount.

  1. Bridging loan brokers can access private and specialist lenders unavailable to the public. These lenders often offer higher LTVs than traditional lenders.
  2. Creative solutions to maximise your loan amount include securing the loan against multiple properties to increase borrowing capacity or, when possible, using your residential property instead of your commercial property as collateral. 
  3. Experienced brokers can identify lenders more lenient toward tight financial circumstances or imperfect credit scores, making them more likely to want the loan and adjusting their rates accordingly. 

Bridging loans typically range in size from £25,000 up to £10 million, but there's no actual upper limit. Some bridging loans have been more than one billion, but these are few and far between.

Remember that bridging loans often come with higher interest rates and shorter repayment terms than traditional mortgages, so it's essential to carefully consider whether this type of financing is suitable for your needs.

How do I calculate the bridging loan term?

The term of a bridging loan is typically calculated based on your specific circumstances and needs and the lender's policies. Generally, the loan term is determined by the expected time it will take for you to repay the loan, which can vary depending on your exit strategy. Here are a few examples.

  1. The sale of your existing property. If you're using a bridging loan to purchase a new property before selling your current one, the loan term may be structured to give you enough time to sell your existing property and repay the loan.
  2. Completion of a property renovation or development. Suppose you're using a bridging loan for renovation or development purposes. In that case, the loan term may be based on the estimated time to complete the project and either sell or refinance the property.
  3. Your financial situation. Lenders will assess your ability to repay the loan within a certain timeframe based on your income, assets, and other financial obligations.
  4. Lender policies. Different lenders may offer varying loan terms, so discussing your needs and options with your lender, broker, or financial advisor is essential.

Overall, the goal is to ensure that the loan term aligns with your financial goals and circumstances, providing you enough time to repay the loan without unnecessary financial strain.

Should I opt for a longer length of time?

Most bridging loans are taken with rolled-up or retained interest, which means you’re not required to service the debt each month but instead will repay the capital plus interest at the end of the term. To get a bridging loan, you must have a reliable repayment method. An important consideration when choosing your loan term is what happens if your exit strategy fails and you cannot repay the loan. The way bridging loans work is that you can opt for a longer term, and should you repay earlier, there are often no early repayment charges (ERC). This approach can mitigate the significant issues if you miss your repayment date and default on your loan, such as significantly higher default interest or foreclosure on a property being used as collateral.

How long can I take a bridging loan?

The maximum bridging loan term offered by UK lenders is 36 months. However, it's typically no longer than 12.

Can you get a bridging loan for 18 months?

Yes, 18 month bridging loans are available.  

Bridging Loan Rates: How They Impact Your Calculation

Bridging loan rates are subject to various factors, influencing their fluctuation. These include the lender, loan size, loan-to-value ratio, loan duration, and borrower's financial situation. Typically higher than traditional mortgage rates due to their short-term nature and elevated risk for lenders, these rates in the UK, for instance, range from approximately 0.4% to 2% monthly, equivalent to an annual percentage rate (APR) of about 5% to 24%. Rates may also be structured as flat fees or percentages of the loan amount. Understanding how these rates are determined involves considering several key criteria.

What are bridging loan rates?

Bridging loan rates can vary widely depending on the lender, loan amount, loan-to-value ratio, loan term, and financial circumstances. However, they are higher than traditional mortgage rates due to the short-term nature of bridging loans and the higher level of risk involved for lenders.

For example, bridging loan rates in the UK range from around 0.4% to 2% per month, translating to an annual percentage rate (APR) of roughly 5% to 24%. Rates can also be structured as a flat fee or percentage of the loan amount.

How is the bridging loan interest rate determined?

The bridging loan rate on every online calculator will be an approximation or an average. Every bridging loan lending scenario is unique, and your interest rate will be based on your scenario. So, what affects it? 

Here are the criteria that affect it.


Different lenders prefer different asset classes. For the most, property is the preferred asset, but you'll find various lenders willing to lend against everything from plant or machinery, valuable art to boats. However, each property type carries different perceived risks. The less risky the property type is to offload, that is, to sell on to recoup the lender's capital investment, interest and fees, the more competitive the rate. As a rule of thumb, the more lenders are willing to lend to an asset class, the more competitive the rate is because it's a market-driven price.

Loan-to-value (LTV):

Different lenders have varying comfort zones of their maximum LTVs. You'll get more lenders willing to loan against low LTVs because there's a perception of reduced risk. The higher that LTV, the fewer lenders you'll find willing to take the risk, which probably means higher interest rates.


Bridging is considered a short-term financing solution. Short-term means up to 12 months. However, you'll find some lenders willing to go to 24 months. The reason it's short-term is simply that bridging is intended to bridge a gap in financing to enable the borrower to get from one state to another. It's more expensive than traditional mortgages because the nature or purpose of borrowing falls outside traditional high street banks, which aren't allowed to take on riskier lending. Lenders primarily make their money from a combination of arrangement fees and interest and like to recoup their capital quickly to lend it back to the market. In some circumstances, the longer a bridging loan is tied up with a borrower, the riskier the loan is perceived because the repaid figure will be higher.


Whilst non-status credit history lending isn't an issue for bridging lenders, it might highlight the borrower as having a higher perceived risk. Bankruptcy, adverse credit, and low incomes aren't necessarily a problem for bridging, but expect to pay a higher interest rate as fewer lenders will want to lend. Again, the less competition for any loan, the higher the interest rates or the higher the fees.

What's the best property asset to borrow against?

Typically, the better types of properties that attract the lower interest rates for bridging loans are (in this order) Residential property, Mixed-use property, Commercial property, Land with planning, and Land without planning.

Residential Property

In the UK, residential property is considered the safest asset, as it appreciates over the long term, and many people are in the market to purchase or rent dwellings. This is why lenders are often willing to lend up to higher loan-to-value (LTV) ratios on residential property—typically up to 80% LTV. Not all residences are created equal, though. A property in a prime location will always attract better rates than one next to a major trunk road or motorway.

Mixed-use Property

For the same reasons that residential properties are attractive security for a loan, mixed-use property (also known as semi-commercial) incorporates an element of a residential dwelling into the building. The actual LTV will vary from lender to lender, but as a guide, it's similar to Commercial Property at 65% LTV.

Commercial Property

Commercial property varies greatly depending on whether a lender deems it desirable security, so only up to 65% LTV is typically offered. Even then, the type of use class it has—whether it's a restaurant, hotel, cafe, forecourt, golf club… You get the idea—all impacts its value to the lender. In addition, the location and demand for that property type will play a significant role in its resale ability.

Land with Planning

Land with planning is typically sought after, with developers eager to snap up the opportunity. Developers tend to like to own undeveloped land for speculation. Many companies in the UK specifically seek out these 'land-banking' opportunities, so it's usually appealing to lenders. However, it's unrealised potential, and lenders aren't developers, so they will price their interest rates accordingly and only typically go to a maximum of 70% LTV—but clearly, that will depend on whether the planning is for residential or commercial use.

Land without planning

Land without planning may not appear at first glance as attractive as land with planning; however, that largely depends on the opportunity the land presents.

For example, if the land is 100 acres of agricultural land, that will hold a value, and some specialist agricultural lenders only finance farm and equestrian land acquisition. If the plot is currently a garden adjoined to a property in a residential area, then it will be a completely different opportunity and will be valued accordingly. Since the Environment Act 2021, there's been a new gold rush for brownfield sites, too, due to developers now being required to offset the green spaces they build upon offsetting the environmental impact of their builds. Land without planning tends to attract a maximum of 50%LTV.

How are bridging rates calculated?

Types of Bridging Loan interest and How it's calculated

You typically have three interest options with Bridging Loans: serviced, retained, and rolled-up interest. Let's take a look at each.

Serviced Interest Bridging Finance

Serviced interest means you’ll service the debt while the finance is in place. Typically, you’ll pay the loan interest monthly and repay the capital amount at the end of the loan duration. 

In reality, those seeking bridging finance are rarely able to meet those interest payments each month because they rely on the loan exit to realise the profit of their transaction. For this reason, retained or rolled-up interest is usually preferred.

Serviced bridging loan rates are calculated using a simple interest formula. The monthly interest payment can be calculated using the following formula:

Monthly Interest = Loan Amount × Monthly Interest Rate


  • Loan Amount is the amount of money borrowed.
  • The monthly Interest Rate is the annual interest rate divided by 12 (to convert it to a monthly rate).

For example, if you have a bridging loan of £100,000 and the monthly interest rate is 1%, the monthly interest payment would be:

Monthly Interest = £100,000 × 0.01 = £1,000

Keep in mind that this formula calculates the interest payment for one month. To calculate the total interest paid over the entire loan term, multiply the monthly interest payment by the number of months in the loan term.

Retained Interest Bridging Finance

With retained interest, the borrower does not need to make monthly interest payments because the projected monthly interest has already been added to the loan amount. Effectively, the borrower is not only borrowing the capital but also borrowing the interest, and as such, interest is charged on the interest. This is a popular choice for borrowers as they often don't have the financial means to service their debt until the loan's exit.

Retained interest bridging finance involves deferring interest payments until the end of the loan term, with the interest accruing throughout the loan term. The formula to calculate the total interest accrued at the end of the loan term for retained interest bridging finance can be expressed as follows:


  • Loan Amount is the initial amount borrowed.
  • Annual Interest Rate is the annual interest rate expressed as a decimal.
  • The number of Months is the total number of months in the loan term.

This formula calculates the total interest accrued over the loan term, considering the compounding effect of accruing interest over time.

Rolled-up Interest Bridging Finance

Like retained interest, rolled-up interest requires no monthly interest payments from the borrower and is added to the loan amount. The difference between rolled-up and retained interest is that the lender does not charge interest on the interest already added to the loan.

Borrowers need to understand that retained and rolled-up interest increases the overall loan amount, which is called the industry's gross loan. That gross loan amount cannot exceed the maximum LTV or the lender.

Rolled-up interest bridging finance involves adding the interest payments to the loan balance each month, with no monthly interest payments made during the loan term. The formula to calculate the total amount owed at the end of the loan term for rolled-up interest bridging finance can be expressed as follows:


  • Loan Amount is the initial amount borrowed.
  • Annual Interest Rate is the annual interest rate expressed as a decimal.
  • The number of Months is the total number of months in the loan term.

This formula calculates the total amount owed at the end of the loan term, including the initial loan amount and the compounded interest accrued over the loan term. No monthly interest payments are made during the loan term; the interest is "rolled up" into the total amount owed.

Alternatives to using a Bridging Loan Calculator

Yes, there are alternatives to using a Bridging Loan Calculator. Here are your options.

  1. Working with a Bridging Loan Broker: A bridging loan broker specialises in arranging bridging finance and can offer tailored advice and recommendations based on your requirements. They can access various lenders and negotiate terms on your behalf to secure the most favourable deal.
  2. Directly Contacting Lenders: You can contact bridging loan lenders directly to discuss your borrowing needs and obtain quotes. Keep in mind that each lender may have different criteria and offerings, so comparing options is essential.
  3. Consulting with a Financial Advisor: A financial advisor can provide personalised guidance and calculations based on your financial situation, needs, and objectives. They can offer insights into the costs and benefits of bridging loans compared to other financing options, helping you make informed decisions.

Alternative Calculators that you might find useful

Here are 4 other FREE calculators, including an LTV, Profit Margin, Commercial and Development Finance calculator

Can I get a no-obligation bridging loan quote?

Yes, every broker should be able to offer a bridging loan quote proposal for free and without obligation. Some brokers require an application fee to move the proposal forward to an application to avoid borrowers who have no intention of taking out a bridging loan. However, those that do charge an application fee should also offer a full refund on that fee when the loan is completed. From a broker's perspective, a lot of work is undertaken by the broker to package the application and source the agreement in principle from multiple lenders.

Final thoughts

Bridging Loan Calculators provide a convenient method for estimating short-term loan costs, aiding financial planning for individuals and businesses. However, their accuracy hinges on input simplicity and the exclusion of certain fees. Alternatives include consulting financial advisors, working with brokers for personalised recommendations, or contacting lenders directly. These options offer tailored guidance to navigate the complexities of bridging finance effectively. Recognising that while calculators offer initial estimates, consulting with professionals ensures informed decision-making aligned with specific needs and objectives is crucial.

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Get help today. We're here to answer any questions about bridging loans.

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