Bridge Calculator
Model the true cost of a bridging facility, including rolled-up interest, fees and the net advance received.
Introduction
Who this is for: Investors and developers using short-term finance for acquisitions, refurbishments or auction purchases.
Why it matters: Bridging is quoted monthly, so a "1% rate" is around 12.7% a year once compounded. With arrangement and exit fees on top, the real cost of a 12-month bridge is routinely 15-18% — and if interest is rolled up and deducted at drawdown, the cash you actually receive is well below the headline loan.
Typical scenario: An investor buys at auction for £400,000 with a 12-month bridge at 0.95% per month, planning to refurbish and refinance onto a term mortgage.
- Reading a monthly rate as an annual one — a factor-of-twelve error.
- Budgeting against the gross loan when rolled-up interest and fees are deducted upfront.
- Ignoring the exit fee, which is often charged on the gross loan rather than the balance.
- Assuming the exit route will complete on time — most bridging distress comes from an overrun, not the rate.
Inputs
Facility
months
Rate & Fees
Exit
Analysis
A £280,000 facility at 0.95% per month over 12 months costs £46,542 in total — an effective annualised rate of 16.6%.
Because interest is rolled up, £33,642 is retained at drawdown alongside fees, so the net advance is £236,258.
At exit, £316,442 is repayable against an expected value of £520,000, releasing £203,558.
This analysis provides context, not financial advice. Consult a qualified adviser before making investment decisions.
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Export
Live Results
Total Cost of Finance
£46,542
Net Advance Received
£236,258
Amount to Repay at Exit
£316,442
Effective Annualised Rate
16.62%