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https://www.kandoo.co.uk/calculators/bridging-loan-calculator
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Estimate monthly interest, fees and redemption cost for short-term bridging finance.
Estimate only. Bridging finance can include valuation fees, legal fees, broker fees, lender fees, retained interest and exit charges that vary by lender and case.
Estimated bridge cost
£0
Estimate the interest and the two percentage fees entered for a short-term property loan. Compare paying interest monthly with leaving it until the end, while keeping the timing assumptions in view.
Compare scenarios by changing one input at a time. The glossary explains the technical words used on this page.
This is a simple-interest model in both modes. “Rolled” changes when interest is paid, not how it compounds. It will not match a product that charges interest on accrued interest or uses different fee timing.
We keep the original loan unchanged throughout the term. The mode selected changes the amount due at the end, rather than the overall interest charge.
Interest = loan × monthly rate × months
Bridge cost = interest + feesUse the monthly rate as a decimal: 0.85% becomes 0.0085. A 12-month calculation at that rate gives simple interest of 10.2% of the loan before fees; that is not an APR quote.
Both examples use a £250,000 loan on a £400,000 property at 0.85% per month for 12 months, with 2% arrangement and 1% exit fees. Only interest-payment timing changes.
Worked example
£400,000 property · £250,000 loan · 0.85% monthly · 12 months · 2% arrangement fee · 1% exit fee · rolled interest
£283,000
estimated redemption amount
Worked example
£400,000 property · £250,000 loan · 0.85% monthly · 12 months · 2% arrangement fee · 1% exit fee · serviced interest
£257,500
estimated redemption amount
Follow the same loan through a shorter term, a longer term and a higher monthly rate. These examples assume exactly the selected number of months, without a minimum-interest period.
On a small screen, swipe the table sideways to see every figure.
| Scenario | Inputs and assumptions | Monthly interest | Total interest | Fees | Estimated bridge cost | Estimated redemption amount |
|---|---|---|---|---|---|---|
| A · 6 months, rolled | £400,000 property · £250,000 loan · 0.85% monthly · 6 months · 2% arrangement fee · 1% exit fee · rolled interest | £2,125 | £12,750 | £7,500 | £20,250 | £270,250 |
| B · 12 months, rolled | £400,000 property · £250,000 loan · 0.85% monthly · 12 months · 2% arrangement fee · 1% exit fee · rolled interest | £2,125 | £25,500 | £7,500 | £33,000 | £283,000 |
| C · 12 months, serviced | £400,000 property · £250,000 loan · 0.85% monthly · 12 months · 2% arrangement fee · 1% exit fee · serviced interest | £2,125 | £25,500 | £7,500 | £33,000 | £257,500 |
| D · 1% monthly, rolled | £400,000 property · £250,000 loan · 1% monthly · 12 months · 2% arrangement fee · 1% exit fee · rolled interest | £2,500 | £30,000 | £7,500 | £37,500 | £287,500 |
Keeping the bridge for longer increases simple interest even when the fee percentages stay the same. B and C have the same overall modelled borrowing cost: C’s lower redemption amount reflects interest paid earlier, not interest avoided.
Examples use the stated assumptions and the existing calculator’s rounding. They are illustrations, not product offers, personalised recommendations or guarantees.
Property used as security may be repossessed if repayments are not kept up. A calculator result is not a lending approval.
Plain-English definitions of the finance, calculation and technical terms used on this page. Dotted links take you directly to the relevant definition.
Both modes calculate simple interest on the original loan. Only the time that interest is assumed to be paid changes.
Not in this calculator. It accrues loan × monthly rate each month without charging further interest on the accumulated amount. Check the actual product.
Not here. The model treats the entered fees as payable at the end. It does not calculate the cash actually released after deductions.
The model charges for the months selected. A real agreement may have minimum-interest, early repayment or other conditions that change the result.
Not necessarily. It uses only the original loan and entered property value. A lender may assess fees, interest and security differently.
Before using a bridge, check the amount released, the full payment schedule and the amount needed to repay it. Make sure the exit plan accounts for delays and additional costs.
About this explanation. The methodology describes the existing calculator. Worked examples were checked against its calculation and an independent calculation. This is general information, not a professional recommendation or formal compliance approval.
Further reading from MoneyHelper and government sources: