Bridging Loan Calculator
What is a bridging loan?
A bridging loan is a short-term finance solution, typically used to ‘bridge’ a gap between buying a new property and selling an existing one, or to quickly raise capital for property purchases, renovations, or auction buys. These loans are usually secured against property and are repaid in full at the end of the term, often within 12 months. Interest can be paid monthly or rolled up, and fees may apply. Use the calculator below to estimate your potential costs and repayments.
A bridging loan is a short-term finance solution, typically used to ‘bridge’ a gap between buying a new property and selling an existing one, or to quickly raise capital for property purchases, renovations, or auction buys. These loans are usually secured against property and are repaid in full at the end of the term, often within 12 months. Interest can be paid monthly or rolled up, and fees may apply. Use the calculator below to estimate your potential costs and repayments.
How to Use the Bridging Loan Calculator
Step One: Enter the amount you wish to borrow in the “Loan Amount” field. This should be the total sum you need for your property transaction or project.
Step Two: Specify the expected loan term in months. Bridging loans are typically short-term, so choose the duration that matches your needs.
Step Three: Input the monthly interest rate offered by your lender. You can usually find this rate in your loan quote or lender documentation.
Step Four: Select your interest payment option: “Monthly Interest Payment” if you plan to pay interest each month, or “Rolled-Up” if you prefer to pay all interest at the end of the term. Then, fill in any arrangement or exit fees (as a percentage of the loan), and add any other one-off fees if applicable.
Step Five: Click the “Calculate” button. The calculator will display your estimated total repayment, total interest, and a breakdown of all fees. Review the calculation explanation to understand how the figures are derived and use this information to compare bridging loan offers or plan your finances.