This calculator gives you a quick, indicative estimate of what a bridging loan might cost — the monthly and total interest, the arrangement and any exit fee, the cash you would actually receive on day one (the net advance), and the loan-to-value on the property. It is built for property investors, developers and homeowners weighing up short-term finance — for a chain-break, an auction purchase, a refurbishment or a quick completion — who want a feel for the numbers before they speak to anyone.
It is a planning tool, not a quote. Every figure you enter is yours to change, and the defaults shown are illustrative examples only, not current market rates or fees. The real cost of any bridge depends on the lender, the product, the property and your circumstances, which is exactly where a specialist broker earns their place.
How it works
You enter the property value, the loan, the monthly interest rate, the term in months, the arrangement fee and any exit fee, then choose two things: whether to work from the gross loan (the full facility) or the net advance (the cash you receive), and whether interest is retained (rolled up and deducted from the loan up front) or serviced (paid each month). The calculator then works out the figures as follows.
- Total interest is the monthly interest rate multiplied by the gross loan and the number of months — bridging interest is normally charged on a simple monthly basis over the term. So a £250,000 gross loan at an example 0.85% a month over 12 months works out at roughly £25,500 of interest (this is an illustration, not a rate we are offering).
- Monthly interest is simply the gross loan multiplied by the monthly rate — the figure you would pay each month if the interest is serviced.
- The arrangement (facility) fee is a percentage of the gross loan, and an exit fee, if one applies, is treated here as a percentage of the gross loan too.
- The net advance is the cash you actually receive on completion. Where interest is retained, the lender deducts both the rolled-up interest and the arrangement fee from the gross loan, so the net advance is the gross loan minus the total interest minus the fee. Where interest is serviced, only the fee is deducted up front because you pay the interest monthly instead.
- Working backwards from net to gross. If you tell the calculator the net advance you need, it solves for the larger gross loan required to leave that much in your hand after deductions — because with retained interest the gross has to be bigger than the cash you receive. In words: the gross is the net divided by the proportion of the loan left after the rolled-up interest and fee are taken out.
- Loan-to-value (LTV) is the gross loan as a percentage of the property value. The calculator flags it if it rises above a typical guideline level, as a prompt to discuss the structure — not as a fixed lender limit.
The result is an estimate to inform a conversation. It does not assess whether a lender would actually offer these terms, and it is not a personal illustration.
Frequently asked questions
Is this a quote or an offer of finance? No. It is an indicative estimate generated from the figures you enter, to help you understand the shape of the costs. It is not a quote, a personal illustration or an offer, and the actual terms available will depend on the lender, the product and your circumstances.
What is the difference between retained and serviced interest? With retained (rolled-up) interest, the lender deducts the interest for the whole term from the loan at the outset, so you receive less cash on day one but make no monthly interest payments. With serviced interest, you pay the interest each month and the loan is not reduced by it up front, so the net advance is higher. The total interest over the term is the same in this calculator; what changes is when and how you pay it. Which suits you depends on your cash flow and your exit.
Why is the gross loan higher than the net advance? Because the costs of the bridge — rolled-up interest and the arrangement fee — are commonly taken out of the loan itself. If you need a specific amount of cash in your hand, the gross facility has to be larger to cover those deductions. The calculator works this out for you when you choose to work from the net advance.
Is bridging finance regulated, and what are the risks? Some bridging finance is regulated by the Financial Conduct Authority and some is not — it depends on the facts of your case, for example whether the security is your own home. As short-term, specialist borrowing, bridging generally carries higher rates and fees than a standard mortgage, and it relies on a clear, credible exit (a sale or a refinance) to repay it. Your property may be repossessed or sold if you do not repay as agreed, so it is important to take advice before committing.
Speak to a specialist
If the numbers look workable and you want to know which lenders across our panel of more than 135 lenders are likely to fit, a short conversation will tell you quickly. Call 020 7126 8574 or request a call back, and we aim to reply within one working day.
Your property may be repossessed if you do not keep up repayments on a mortgage secured on it.
Some bridging finance is regulated by the Financial Conduct Authority and some is not; development finance is not regulated. Propertyze is a trading style of City Finance Brokers Ltd, authorised and regulated by the Financial Conduct Authority (FCA No. 766295). We conduct both regulated and unregulated business, so not all products provided through us are regulated by the FCA.
This calculator gives an indicative estimate only. It is not a personal illustration, a quote or an offer of finance, and the default figures shown are illustrative examples, not current market rates or fees.