Illustration — not a quote
- Gross loan (incl. fees and any retained interest)
- –
- Monthly interest payment
- –
- Total interest
- –
- Arrangement + exit fees
- –
- Amount to repay at the end
- –
- Total cost of borrowing
- –
Lenders calculate differently and add other costs. Ask any lender for the total amount repayable before you sign.
How does the bridging loan calculator work?
It starts from the money you need to receive and works out the loan the lender would actually advance (the gross loan) once fees and any retained interest are added. Rates are monthly, as bridging lenders quote them — for background, see our guide to bridging finance for investors.
- Serviced: you pay interest each month on the gross loan, and repay the gross loan at the end.
- Rolled up: interest is added to the balance each month and compounds; nothing is paid until the end.
- Retained: the interest for the whole term is held back from the advance, so the gross loan is bigger for the same net amount.
The Personal Finance Society lists retained and rolled-up interest as the two main ways bridging lenders charge interest; the British Business Bank notes some lenders take monthly interest-only payments.
What should you put in?
The terms from a real offer, if you have one. If you don't, compare against the published lender rates in our bridging loan rates guide. Use a term that covers a realistic delay, not the best case: overrunning can cost more, as the PFS notes rates on unregulated loans can rise after the term ends.
What isn't included?
Valuation fees, your legal costs and the lender's, broker fees, and any default or extension charges. The British Business Bank lists broker, lender, legal and administration fees as typical extras.
Worked example
With the pre-filled figures — £250,000 needed, 0.9% a month, 12 months, a 2% arrangement fee and retained interest — the lender advances more than £250,000 because the year's interest and the fee are taken from the loan itself. Switch to serviced to see the smaller loan you'd take if you could pay interest monthly. These are example figures, not a quote.