Short-term finance and exit cost

Business bridging loan calculator

Plan the cash needed during a bridging loan and when it ends. Enter a monthly interest rate, term and upfront fees, then choose how interest is charged and paid.

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Free to use · No credit search · GBP estimates

Short-term project finance needs a realistic repayment timetable.

Your illustrative estimate

Monthly repayment

£800.00

Monthly interest payment. Capital is repaid separately at the end.

Loan amount: £100,000.00
Total interest: £9,600.00
Upfront fees: £0.00
Total paid, including fees: £109,600.00
Balance due at the end: £100,000.00

Plan how you will repay £100,000.00 at the end. It is included in the total paid above.

No application or credit search. No personal details needed. Estimates assume on-time payments and an unchanged rate; lender rounding, daily interest and contractual fees can differ.

Compare repayment structures

Same amount and rate. Entered fees stay the same.

Illustrative comparison of repayment costs
Scenario	Monthly payment	Interest	Total incl. fees	End balance
Serviced monthly	£800.00	£9,600.00	£109,600.00	£100,000.00
Deferred simple	£0.00	£9,600.00	£109,600.00	£109,600.00
Monthly compound	£0.00	£10,033.87	£110,033.87	£110,033.87

View the full monthly repayment schedule

Upfront fees are separate from the monthly rows. Any final capital or accrued-interest balance is payable in addition to the last monthly payment.

Monthly opening balance, payment, interest, capital repaid and closing balance in GBP
Month	Opening balance	Payment	Interest	Capital repaid	Closing balance
1	£100,000.00	£800.00	£800.00	£0.00	£100,000.00
2	£100,000.00	£800.00	£800.00	£0.00	£100,000.00
3	£100,000.00	£800.00	£800.00	£0.00	£100,000.00
4	£100,000.00	£800.00	£800.00	£0.00	£100,000.00
5	£100,000.00	£800.00	£800.00	£0.00	£100,000.00
6	£100,000.00	£800.00	£800.00	£0.00	£100,000.00
7	£100,000.00	£800.00	£800.00	£0.00	£100,000.00
8	£100,000.00	£800.00	£800.00	£0.00	£100,000.00
9	£100,000.00	£800.00	£800.00	£0.00	£100,000.00
10	£100,000.00	£800.00	£800.00	£0.00	£100,000.00
11	£100,000.00	£800.00	£800.00	£0.00	£100,000.00
12	£100,000.00	£800.00	£800.00	£0.00	£100,000.00

Understand a monthly bridging rate

Bridging quotations can state a monthly rate rather than an annual interest rate. Enter the monthly rate in this calculator: 0.8% means 0.8% per month, not per year. The example rate is an assumption and does not represent an available offer.

For £100,000 at an assumed 0.8% per month over 12 months, monthly serviced interest is £800. Total simple interest is £9,600. With £2,000 paid upfront in fees, total cash paid is £111,600 including the capital repayment. Monthly compounding produces a different result because interest is charged on the growing balance.

Serviced, deferred and compounded interest

Serviced interest is paid each month and the original principal is repaid at the end. Deferred simple interest is calculated on the original principal and paid with capital at the end. Monthly compounded interest is added to the balance each month, with later interest charged on that increased balance.

Labels such as rolled-up and retained interest can be used differently between agreements. Check the exact calculation in the quotation. This tool does not model retained interest deducted from the initial advance, staged drawdowns, minimum-interest periods or fees financed within the loan. All entered fees are paid upfront and do not reduce the amount advanced.

Calculate the exit before committing

A business bridging loan is short-term finance. The important number is often the capital and unpaid interest due at exit, rather than a regular instalment. Identify whether repayment depends on selling a property, completing a project, collecting a payment or arranging longer-term finance.

Test an extra three or six months and compare the additional interest. A later exit can cost more even if the headline monthly rate stays unchanged. Ask separately about extension fees, default interest, early-repayment terms and any minimum charge, since they are not included automatically.

Prepare evidence for the proposed exit route.
Allow for legal, valuation, broker and arrangement costs.
Check the net amount actually received after deductions.
Confirm which property or business assets secure the loan.

Developer and accountant reviewing documents beside a property model — Calculate the cash required when the bridging loan ends.

Surveyor checking a vacant shop frontage with a clipboard — Property value and an evidenced exit route influence a bridging proposal.

Common questions

Before you compare finance

Does this calculate a lender's retained-interest advance?

No. Retained interest may be deducted from the gross loan before funds are released, so net proceeds differ from the headline loan. Request the lender's gross-to-net breakdown and contractual interest basis.

Is monthly rate multiplied by 12 the APR?

No. That gives a simple nominal annual rate before fees. Compounding, fees and the timing of advances and payments affect annualised cost. The calculator does not calculate a regulated APR.

Does deferred interest mean no repayments are needed?

No. The model has no regular monthly payment, but all capital and accrued interest are due at the end. Upfront fees are payable separately.

Sources and calculation assumptions

Reviewed 11 October 2026. Independent educational tool; calculations are estimates, not a finance offer or affordability assessment. Annual-rate tools use a nominal rate divided by 12. The bridging tool uses the entered monthly rate. All fees are paid upfront. No payment holidays, taxes, insurance or default charges are included.

British Business Bank: business bridging loans (opens in a new tab)

Your next step

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