Bridging loan calculator
The true cost of a bridge, not just the headline rate: interest, fees, the gross loan you actually take and what you repay at exit.
Bridging loan cost calculator
Illustrative only · not a quote or offer
How the calculator works
Bridging lenders quote a monthly rate, then add fees, and the way the interest is paid changes how big the loan has to be. The calculator starts from the cash you actually need and works backwards:
- Retained interest: the lender holds back the interest for the whole term on day one. You pay nothing monthly, but the gross loan is bigger than the cash you receive, so you need a lower LTV to fit.
- Rolled-up interest: interest is added to the loan each month and repaid at the end. Shown here compounding monthly; some lenders charge simple interest, which costs a little less.
- Serviced interest: you pay the interest each month, so the loan stays at the cash you need plus the fee. Lenders will want to see you can afford the payments.
The arrangement fee is usually added to the loan. Exit fees, where charged, are a percentage of the loan when you repay. Valuation, legal and any broker fees are paid on top.
What does a bridging loan cost?
For a straightforward residential investment bridge at a sensible LTV, monthly rates typically start somewhere under 1% a month, with an arrangement fee around 1–2%. Higher LTVs, heavy works, commercial property, adverse credit or a weak exit all push the rate up. The calculator's defaults are a starting point; change them to what you've been quoted.
The exit matters more than the rate
Every bridge is priced and assessed on how it will be repaid: a sale, or a refinance onto a buy-to-let or commercial mortgage. A bridge that overruns its term because the exit wasn't ready can cost far more than a slightly higher rate. See bridge-to-let and refurbishment bridging.
Frequently asked questions
How is bridging loan interest calculated?
Bridging interest is charged monthly on the loan. It can be retained (deducted up front for the whole term), rolled up (added to the loan and repaid at the end) or serviced (paid each month).
What is the difference between retained and rolled-up interest?
Retained interest is worked out for the full term and held back on day one, so the gross loan is larger from the start. Rolled-up interest is added month by month, so if you repay early you only pay for the months used.
How much can I borrow on a bridging loan?
Typically up to 70–75% of the property value as a gross loan, including fees and any retained interest. Some cases go higher with additional security.
What fees come with a bridging loan?
Usually an arrangement fee of around 1–2%, valuation and legal costs, sometimes an exit fee, and any broker fee.
Are these figures a quote?
No. They are illustrative only. Actual terms depend on the lender, the property, the borrower and the exit.
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All finance is subject to the lender's assessment, case by case. Criteria, loan amounts, works funding and terms vary by lender and change without notice. DasLend is an introducer only. We pass enquiries to specialist lenders and FCA-regulated firms; we do not lend, advise or arrange finance. All figures are illustrative, not a quote or an offer. Property used as security may be repossessed if you do not keep up repayments.