Bridging Loan Calculator

Calculate the total cost of a short-term bridge loan.

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Bridge Loan Cost

Enter the loan amount, rate, term, and fees.

Total cost of bridge loan
$0
Monthly interest: $0
Monthly interest only
$0
Total interest paid
$0
Arrangement fee
$0
Total cost
$0
Total repayment
$0
Effective annual rate
0%

Worked example

With the default inputs shown below, this calculator returns the following results:

InputValue
Loan amount ($)$200,000
Interest rate (%)8%
Loan term (months)6
Arrangement fee ($)$2,000
ResultValue
Total cost of bridge loan$10,000
Monthly interest only$1,333
Total interest paid$8,000
Arrangement fee$2,000
Total cost$10,000
Total repayment$210,000

Values shown are produced by this page in your browser; change any input to update them.

How to use the Bridge Loan Cost

  1. Loan amount ($) — default $200,000
  2. Interest rate (%) — default 8%
  3. Loan term (months) — default 6
  4. Arrangement fee ($) — default $2,000
  5. Press Calculate to update the results instantly.

Frequently asked questions

Short-term finance that lets you buy a new property before your old one sells, or cover a chain gap. Terms are usually 6-24 months.
Budget for interest at 0.6-1% per month plus an arrangement fee of 1-2% of the loan. Over 12 months the all-in cost often reaches 10-15%.
The rate is far above a mortgage and interest usually rolls up, so the debt grows monthly. If the sale is delayed you may need an extension at extra cost.

Sources & references