Bridging loan true cost calculator

Bridging loan calculators often show only interest and loan amount. In practice, arrangement fees, valuation, legal work, exit fees and how interest is treated — retained, rolled-up or serviced — change the money you actually receive and the true cost of finance.

This bridging loan calculator UK businesses can use for planning itemises every line. Edit rates and fees to mirror a term sheet. Tera's broker fee is shown as £0 so you can see the saving against a typical 1% broker charge.

Retained interest is calculated on the gross loan for the full term and deducted on completion. You make no monthly payments, but your net advance is lower. Rolled-up interest compounds monthly on the balance and increases what you repay at exit. Serviced interest is paid monthly — usually the cheapest total interest if cash flow allows.

The comparison strip below the results shows all three treatments side by side using your inputs so you can discuss trade-offs with your broker.

On a £300,000 gross loan at 60% LTV, 12 months, 0.95% per month retained interest, 2% arrangement fee and typical valuation and legal costs, retained interest is £34,200 and net day-one advance about £259,800. Total cost of finance including fees is £43,450 — an effective annual cost of roughly 16.7% on the money you actually receive.

Adjust gross loan, term and monthly rate to match your scenario, then request an exact figure from Tera's lender panel with no obligation.