Bridging Loan Calculator

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. 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. Adjusting one input at a time toward extreme values shows which ones move the result most.

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.

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.

Worked example

Suppose you borrow 300,000 at 1.2% monthly for 9 months with a 2.5% arrangement fee:

• Arrangement fee: 300,000 × 2.5% = 7,500 (due upfront)
• Monthly interest rolled up over 9 months at 1.2% = approximately 35,400
• Total repayment: 342,900

The arrangement fee hits your cash immediately. The interest accrues monthly and compounds if not paid during the term.

When this metric matters

Bridging loans appear in property transactions where timing mismatches exist — for example, needing funds before a sale completes or before refinancing closes. The short, high-cost nature means total outlay varies sharply with term length and rate. Comparing two bridge offers requires both the headline monthly rate and the upfront fee structure.

What this illustrates and what it does not

This calculator models the core interest and fee arithmetic for a bridging loan under standard terms. It illustrates how monthly compounding and upfront fees combine to form the total repayment amount. It does not predict actual lender pricing, model partial repayments, account for rate resets, include regulatory fees, or estimate cashflow timing. Use the result as an educational comparison tool to understand the mechanics, not as a binding quote.