How daily interest works on a bridging loan
Most UK bridging loans are quoted as a monthly rate, but some lenders charge interest for each day the loan is outstanding instead of for whole months. That means you pay only for the days you borrow, which matters because bridging loans are often repaid as soon as a sale or refinance completes.
To get a daily rate, the monthly rate is turned into an annual rate by multiplying by 12, then divided by the number of days in the year your lender uses, usually 365. A loan of £250,000 at 0.85% a month is 10.2% a year, which is £69.86 a day on a 365-day basis.
Minimum interest periods and early repayment
Some offers charge a minimum amount of interest, such as one or three months, even if you repay sooner, while others have no minimum term at all. Enter the minimum in days if your offer has one. The calculator charges the greater of the actual days and the minimum.
Check how your lender counts the days and whether interest is charged on the day of redemption. Ask for a redemption statement before you complete, because figures from the calculator are an estimate of the lender's own statement.
Worked example: 135 days on £250,000
A £250,000 bridging loan is drawn on 2 November 2026 and repaid on 17 March 2027, which is 135 days. At 0.85% a month on a 365-day basis, interest is £69.86 a day and £9,431.51 in total. With a 2% arrangement fee of £5,000, the total cost of borrowing is £14,431.51 and the redemption figure is £259,431.51.
If the loan were repaid after only 60 days, interest would be £4,191.78. With a 90-day minimum interest period, you would still pay £6,287.67, so a minimum period can wipe out the saving from repaying early.
What this calculator does not include
This works out simple interest charged by the day on a constant balance. It does not compound interest monthly, add further drawdowns or include default interest if the loan runs past its term. For a full quote with retained or compounded interest, use the UK bridging finance calculator.
For the full cost of a bridge with retained or compounded interest, use the UK bridging finance calculator .
To check how much you can borrow against the property, use the UK bridging loan LTV calculator .
Use the right country page
This page stays in pounds and uses UK bridging terms: a monthly rate converted to a daily rate on a 365-day year, drawdown and redemption. The country choices above the inputs open separate local pages. Choosing United States opens the US bridge loan per diem calculator, which uses an annual rate and often a 360-day year. The inputs reset and amounts are not converted.
Inputs for the daily interest bridging loan calculator
Loan balance
The amount outstanding that interest is charged on.
Quoted interest rate
The rate in your offer, not the APR. UK bridging is usually quoted per month.
Rate quoted per
Month for a monthly rate, which is multiplied by 12; Year for an annual rate.
Days in the year
The day-count basis in your loan documents. UK lenders usually use 365 days.
Drawdown date
The date the loan was paid out to you.
Redemption date
The date you expect to repay the loan in full.
Minimum interest period
The fewest days of interest the lender charges, from your offer. Enter zero if there is no minimum.
Arrangement fee
The lender's fee as a percentage of the loan, paid at the start.
Exit fee
A percentage some lenders charge on repayment. Enter zero if none.
Other costs
Valuation, legal and broker costs you pay separately.
CALCULATOR QUESTIONS
UK daily interest bridging loan calculator questions
How is daily interest worked out on a bridging loan?
Multiply the monthly rate by 12 to get an annual rate, divide by the days in the year your lender uses, usually 365, and multiply by the loan balance. That gives the interest per day.
Do I save money by repaying a bridging loan early?
With daily interest, yes, unless your offer has a minimum interest period. Then you pay at least the minimum even if you repay sooner.
What is a redemption figure?
The total needed to repay the loan on a given date: the balance, the interest to that date and any exit fee. Ask the lender for a redemption statement before you complete.
Is daily interest the same as compound interest?
No. Daily interest here is simple interest charged for each day. Some loans also add unpaid interest to the balance monthly, which this calculator does not do.
What happens when I change country?
The United States option opens the separate US bridge loan per diem page, in dollars, with an annual rate and a 360-day default. Your inputs are reset rather than converted.