A bridging loan calculator shows the cost of a short property-backed loan. For example, £300,000 for 12 months at 0.85% a month with interest rolled up and a 2% fee means about £32,072 of interest and £332,072 to repay at the end. Real offers depend on the lender, the property and your exit, and are subject to status.
Work out a bridging loan
An illustration, not a quote. Lenders set their own rates, fees and terms, and any offer is subject to status and lender criteria.
Check your funding optionsHow does the bridging loan calculator work?
Bridging lenders quote interest as a monthly rate, because the loans usually run for months rather than years. The calculator takes the property value, the loan, the term in months, the monthly rate and the fees, and shows the loan to value (LTV), what reaches your account, the interest and fees in pounds, and the amount due when you repay.
It assumes the arrangement fee is deducted from the advance, which is common, and that any exit fee is a percentage of the loan paid on redemption. It does not include valuation, legal or broker costs, which vary by case. See our guide to bridging loans for how the product works and when it fits.
Rolled up, retained or serviced: what is the difference?
Bridging interest can be paid in three ways, and the choice changes both what you receive and what you repay:
- Rolled up: the interest is added to the loan each month and repaid with it at the end. Nothing is paid during the term, but the calculator compounds the interest monthly, so you pay interest on interest.
- Retained: the lender holds back the interest for the whole term from the advance at the start. You receive less, but the interest is not compounded, and nothing extra is due at the end.
- Serviced: you pay the interest each month, so the balance stays at the original loan. This needs income to cover the payments.
| Interest paid | You receive | Total interest | Paid monthly | Due at the end |
|---|---|---|---|---|
| Rolled up | £294,000 | £32,072 | None | £332,072 |
| Retained | £263,400 | £30,600 | None | £300,000 |
| Serviced | £294,000 | £30,600 | £2,550 | £300,000 |
Lenders differ in how they apply rolled-up and retained interest, for example whether retained interest is refunded if you repay early. Check the method in any offer.
Why does the length of the bridge matter so much?
Because you pay the monthly rate for every month the loan is open. In the example above, if the sale or refinance slips from 12 to 15 months, rolled-up interest rises from £32,072 to £40,612, before any extension or default fees the agreement allows. Run the calculator for the term you expect and for a late exit.
A bridging lender lends against a clear way out: the sale of the property, a refinance onto a term loan or commercial mortgage, or another source of funds. If the exit is uncertain, the cost of a delay can matter more than the headline rate.
How much can you borrow against the property?
Lenders cap the loan as a share of the property's value. On commercial property, bridging lenders in our directory mostly publish maximums of 70% to 75% (checked 6 October 2026), with lower limits for land. The calculator shows your LTV so you can see how far a deal is from those limits; the lender's own valuation decides the figure it uses.
Commercial bridging lenders in our directory publish starting rates of about 0.9% a month (Glenhawk from 0.88% a month, checked 15 October 2026), and Black & White Bridging publishes a 2% arrangement fee. Your rate depends on the property, the LTV, the exit and your experience.
Is a bridging loan regulated?
Most business bridging loans are not. A loan is a regulated mortgage contract only where it is made to an individual or to trustees, is secured on land, and at least 40% of that land is used, or intended to be used, as or in connection with a dwelling, unless an exclusion applies (article 61 of the Regulated Activities Order). Loans secured on commercial premises fall outside it. Capzy introduces business borrowers to lenders for unregulated business finance.
How do you get real figures for your bridge?
Capzy is a credit broker, not a lender, and is paid by the lender. With bridging, the term sheet matters more than the headline rate, so we set offers' monthly rates, fees, LTV and extension terms side by side. You can check your funding options with a soft search that does not affect your credit score; any offer is subject to status and lender criteria.
If the bridge will be refinanced onto a longer loan, try the commercial mortgage calculator, and see our guide to commercial mortgages.
Sources
- What is a business bridging loan?, British Business Bank
- Commercial bridging, Glenhawk
- Commercial bridging loans, Black & White Bridging
- Regulated Activities Order 2001, article 61: regulated mortgage contracts, legislation.gov.uk
- Glossary: interest roll-up mortgage, Financial Conduct Authority
Capzy is a credit broker, not a lender. We get paid by the lender. This page is general information, not financial, tax or legal advice. Finance is subject to status, lender criteria and affordability; rates and terms depend on your circumstances.