Bridge Loan Cost Calculator

Work out bridge loan cost instantly with clear inputs, formula shown and shareable results.

About Bridge Loan Cost Calculator

Bridging finance is quoted as a monthly rate plus arrangement and exit fees, which makes it look cheaper than it is. Annualising the total cost over the actual term exposes the true rate: 1.2 percent a month with two percent of fees over nine months is close to twenty-two percent a year.

Formulas

Bridge cost

Total = loan x monthly rate x months + loan x fee percentage

Annualised

Effective annual rate = total cost / loan x 12 / term months

Worked example

With the default values below, Bridge Loan Cost Calculator returns Total cost of the bridge of $640,000.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Bridge loan amountminimum 0.01: 5,000,000
Monthly interest rateaccepts 0.01–5 %: 1.2 %
Loan termminimum 1 months: 9 months
Arrangement and exit feesaccepts 0–10 %: 2 %

Results

Total cost of the bridge: $640,000.00
Interest cost: $540,000.00
Arrangement and exit fees: $100,000.00
Effective annual cost: 17.07% %

Step by step

1Values used
2Bridge cost
3Annualised
4Total cost of the bridge= 640,000.00
5Interest cost= 540,000.00
6Arrangement and exit fees= 100,000.00
7Effective annual cost= 17.07 %

Assumptions and limits

The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation, tax or compounding frequency into account.
Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

How is the Bridge Loan Cost figure worked out?

Total = loan x monthly rate x months + loan x fee percentage. Bridging finance is quoted as a monthly rate plus arrangement and exit fees, which makes it look cheaper than it is.

When is a bridge worth the cost?

When it unlocks a transaction that cannot wait, and when the exit is genuinely certain. The danger is a bridge with no committed refinance or sale, because the cost compounds while the exit slips.

What values do I need to enter?

This calculator takes 4 inputs: Bridge loan amount, Monthly interest rate, Loan term, Arrangement and exit fees. The pre-filled defaults are a realistic worked example — replace them with your own site or project figures.