Bridging Loan Calculator
Short-term bridge loan total cost.
Calculate the total cost of a short-term bridging loan including monthly interest and arrangement fees. Enter loan amount and rate for an instant result.
What this tool does
Enter loan amount, monthly interest rate, term in months, and arrangement fee. The tool shows total cost to repay.
Enter Values
Formula Used
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Disclaimer
Results are estimates for educational purposes only. They do not constitute financial advice. Consult a qualified professional before making financial decisions.
Bridging loans are short-term, typically 1-18 months, and priced monthly rather than annually. A 1% monthly rate is around 12.7% APR once compounded. Plus a 2% arrangement fee on day one. A 200,000 bridge at 1% per month for 6 months, 2% fee: roughly 12,000 interest and 4,000 fee — 16,000 total.
Run it with sensible defaults
Using loan amount of 200,000, monthly rate of 1%, term of 6, arrangement fee of 2%, the calculation works out to 16,000.00. Nudge the inputs toward your own situation and the output recalculates instantly. The defaults are meant as a starting point, not a recommendation.
The levers in this calculation
The inputs — Loan Amount, Monthly Rate, Term, and Arrangement Fee — do not pull with equal force. Not every input has equal weight. Flip one at a time toward extreme values to feel which ones move the needle most for your situation.
How the math works
Simple monthly interest (most bridge loans) plus arrangement fee. Assumes interest rolled up and paid at exit; serviced interest would be similar in total. The working is transparent — you can verify every step yourself in the formula section below. No black box, no opaque "proprietary model".
What the headline rate hides
Lenders quote a rate; what you pay is a blend of that rate, fees, insurance, and any early-repayment penalty built into the product. The figure here isolates the core interest cost so you can compare like-for-like across deals — then add the other costs separately before signing anything.
What this doesn't capture
The figure excludes arrangement fees, valuation costs, legal fees, insurance, and any early-repayment charges — those can add several thousand to the headline cost. Rate changes at renewal for fixed-term deals will shift the picture further. Use this for the core interest/principal math and add the other costs on top.
Bridging loan produces a total-cost figure based on the inputs provided.
Inputs
This example uses typical values for illustration. Adjust the inputs above to match a specific situation and see how the result changes.
Sources & Methodology
Methodology
Simple monthly interest (most bridge loans) plus arrangement fee. Assumes interest rolled up and paid at exit; serviced interest would be similar in total.
References
Frequently Asked Questions
Why not an APR figure?
Rolled-up vs serviced?
Why so expensive?
Typical use cases?
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