Work out bridge loan cost instantly with clear inputs, formula shown and shareable results.
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.
Bridge cost
Total = loan x monthly rate x months + loan x fee percentage
Annualised
Effective annual rate = total cost / loan x 12 / term months
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 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.
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.