Start with the cash you actually need
Gross loan means the opening debt before retained interest or deducted arrangement fees. Net cash is what reaches you after those deductions. Entering the net cash you need prevents a deduction from leaving your purchase short.
This calculator holds your requested net cash constant and increases gross debt to fund the selected deductions. Other quoted costs are separate upfront payments; they are neither deducted from the advance nor financed here.
Four interest methods, with clear differences
Serviced interest is paid each month on the gross opening balance. Deferred simple interest uses the same original balance but is paid at exit. Monthly compound interest is added to the balance each month, so later interest includes earlier interest.
Retained simple interest is calculated on gross opening debt for the whole term and withheld at the start. The gross debt is still repayable at exit. Together explains that rolled-up interest can be simple or compound depending on the product. Choose the actual method in your quotation; the phrase rolled-up alone is insufficient.
This is a constant-rate, full-month estimate. It excludes daily accrual, partial months, minimum-interest periods, early-redemption refunds, default charges and extensions. A lender redemption statement is needed for the actual settlement figure.
Fees can change both your debt and your cost
Both percentage fees use the selected basis: net cash or gross opening loan. The arrangement fee is either paid separately at the start or deducted from the gross advance. The exit fee is paid at the end. Other quoted costs are separate upfront cash payments, so enter legal, valuation and broker costs once.
For retained interest and a gross-based deducted arrangement fee: gross loan = net cash ÷ (1 − monthly rate × months − arrangement fee rate), using fractional rates. If the deductions use up the whole loan, the requested net advance is impossible under this model and the calculator rejects it.
For a net-based deducted arrangement fee: gross loan = net cash × (1 + arrangement fee rate) ÷ (1 − monthly rate × months). With a separately paid arrangement fee, that fee does not increase opening debt. Check both the fee base and its payment timing in your quote.
Worked example: receiving 100,000 after deductions
Choose GBP, £100,000 net cash, 1% per month and 6 months. Select retained simple interest, a 2% arrangement fee based on gross opening debt, and deducted arrangement fees. Set exit fees and other costs to zero.
Gross debt is £108,695.65, from £100,000 ÷ (1 − 0.01 × 6 − 0.02). Retained interest is £6,521.74 and the arrangement fee is £2,173.91. After those deductions you receive £100,000. Total borrowing cost is £8,695.65, and final repayment is £108,695.65. No separate upfront cost is entered in this example.
Compare simple and compound interest
With £100,000 gross debt, 1% monthly interest, 6 months and all fees zero, deferred simple interest is £6,000. Monthly compound interest is £6,152.02: £100,000 × ((1.01)^6 − 1). Final repayments are £106,000 and £106,152.02 respectively. Both loans are repaid at exit, but their costs differ.
Total borrowing cost includes interest and all entered fees. Final repayment includes debt and the exit fee. Upfront cash payments and serviced monthly interest are not paid again at exit; adding them to final repayment would double-count them.
How bridging loan interest is calculated month by month
Bridging lenders usually quote a monthly rate. Each month's interest is the balance being charged that month multiplied by the monthly rate. With serviced or deferred simple interest, the balance charged stays at the loan amount, so £100,000 at 1% a month costs £1,000 every month and £6,000 over six months.
With monthly compound interest, each month's interest is added to the debt before the next month is charged. On £100,000 at 1% a month: month 1 costs £1,000.00 (balance £101,000.00), month 2 £1,010.00 (£102,010.00), month 3 £1,020.10 (£103,030.10), month 4 £1,030.30 (£104,060.40), month 5 £1,040.60 (£105,101.01) and month 6 £1,051.01 (£106,152.02). The six months total £6,152.02; the monthly figures are rounded to the penny.
The total cost of a bridging loan is that interest plus the arrangement fee, any exit fee and other costs such as valuation, legal and broker fees. Enter every cost from your quote and the headline result shows the total cost of borrowing.
UK rate quotations and the limits of this estimate
Use Month for a monthly quotation. Annual nominal divides the quoted yearly rate by twelve under a monthly convention. Annual effective takes the twelfth root of one plus the annual fractional rate, then subtracts one. These conversions do not extract a bare interest rate from a fee-inclusive APR.
The UK page uses GBP and UK terminology. Arrangement and exit fees depend on the actual lender and product. Together’s explanation distinguishes serviced, retained and rolled-up structures and notes that rolled-up interest calculations can differ. Confirm whether your quotation uses simple or compound interest and whether fees are based on net cash or gross debt.
No UK affordability assessment, lender loan-to-value cap, stamp-duty calculation or mortgage eligibility rule is included. This constant-rate estimate uses whole months, not exact daily redemption figures. A lender may impose minimum-interest periods, early-repayment terms or extension charges that are not calculated here.
The United States option opens the separate US swing loan page, with USD, annual-rate and origination-point terminology. It resets the inputs rather than converting a UK quotation or transferring an old result.
Loan to value and your lender's limit
Enter the property value and any debt staying in place behind the loan. The calculator shows three loan-to-value figures: net LTV on the cash you receive, gross LTV at the start, and LTV at redemption, which includes interest added to the loan. Lenders usually test one of the gross figures against a maximum, so choose whether your quote measures the gross loan at the start or the balance at redemption.
With the default £250,000 on a £500,000 property and no other debt, net and gross LTV at the start are both 50.00%, because the 2% fee is paid separately. Rolled-up interest of £26,726.56 takes the balance at redemption to £276,726.56, which is 55.35% LTV. At a 75% limit, the most a lender would allow is a £375,000 gross loan, and the most cash that limit allows is £375,000.
Minimum interest periods and itemised fees
Some bridging lenders charge interest for a minimum number of months even if you repay sooner. Enter it under Minimum interest period and the calculator charges interest for the longer of that and your term. A £100,000 loan at 1% a month, with interest paid monthly and repaid after two months under a three-month minimum, pays interest for three months: £3,000.00 rather than £2,000.
Enter broker, valuation and legal costs separately so the cash you have to use is clear. On a £200,000 loan, a 1.5% arrangement fee is £3,000 and a 0.75% broker fee is £1,500, both paid separately, and £1,800 of valuation plus £2,600 of legal fees add £4,400. Costs paid at the start total £8,900.00, leaving £191,100.00 of the £200,000 to use.
Compare all four interest structures
Below the main result the calculator prices the same loan under every structure, so you can see how much the way interest is paid matters. With the defaults, retained interest costs £33,396.44 in total, rolled-up interest compounded monthly costs £31,726.56 and simple interest costs £30,500.00, whether it is paid monthly or at the end. Retained costs more because the loan has to be larger to leave you the cash you need, and interest is charged on the larger amount.
Simple interest is cheapest here, but the right choice also depends on your cash flow: paying monthly needs income, while retained and rolled-up structures need none until the end. Compare quotes on total cost and on how the loan is repaid, not on the monthly rate alone.
Inputs for the bridging loan calculator
Amount you need
Positive net cash after retained interest and deducted arrangement fees, in the selected currency.
Property value
The lender's valuation of the property securing the loan, not a hoped-for price.
Existing mortgage or charge staying in place
Debt that stays on the property behind this loan. It counts towards loan to value. Enter zero if none.
Lender's maximum loan to value
Your lender's limit. The 75% shown is only an illustration.
Limit measured on
Gross loan at the start, or the balance at redemption including interest added to the loan.
Quoted interest rate and period
Match the quotation: monthly, annual nominal with a monthly convention, or annual effective. Do not substitute APR.
Term
A whole number of months from 1 to 60. Daily or partial-month quotes need a different calculation.
Minimum interest period
Months of interest the lender charges at least, even if you repay sooner. Enter zero if none.
How interest is paid
Choose serviced monthly, deferred simple, monthly compound at exit, or retained simple.
Arrangement fee, exit fee and fee basis
Both entered percentages use net cash or gross opening debt, as selected. Enter zero where no fee applies.
Broker fee
A percentage charged on the same basis as the arrangement fee. Enter zero if none.
Valuation fee and legal fees
Fixed amounts paid separately at the start, shown in the cash you have to use.
Arrangement fee payment
Separate means an upfront cash cost; deducted means a larger gross loan is needed to leave the requested cash.
Other quoted costs
Any other cost paid separately at the start. Do not repeat fees entered above.
CALCULATOR QUESTIONS
UK bridging finance calculator questions
Where is the US swing loan calculator?
Choose United States above the form to open the separate US swing loan calculator. The pages share verified arithmetic where applicable, but have their own local content, currency, assumptions and examples.
How much does a bridging loan cost?
Interest at the monthly rate for every month the loan runs, plus the arrangement fee, any exit fee and costs such as valuation, legal and broker fees. Enter them from your quote and the calculator adds them into the total cost of borrowing.
Does rolled-up interest always compound?
No. Some products defer simple interest; others compound it. Select the explicit method in your quotation.
Why is the gross loan larger than my cash advance?
Retained interest and deducted fees are withheld from opening debt. The calculator solves for the larger gross loan needed to leave your requested cash.
Does final repayment include every borrowing cost?
It includes debt and the exit fee payable then. Upfront costs and serviced monthly interest are shown separately and are not paid again at exit.
Can I obtain an exact early-redemption figure?
No. This full-month estimate omits daily accrual, minimum charges, rebates and extension fees. Ask your lender for a redemption statement.
How is loan to value calculated on a bridging loan?
Divide the loan, plus any debt staying in place, by the property value. Net LTV uses the cash advanced, gross LTV the loan at the start, and redemption LTV the balance including interest added.
How much can I borrow against my property?
The calculator shows the most your lender's maximum LTV allows, as a gross loan and as cash you receive. In the default example a 75% limit on a £500,000 property allows £375,000.
Does the calculator include a minimum interest period?
Yes. Enter the number of months under Minimum interest period and interest is charged for the longer of that and your term.