Property · Calculator companion · By K Imports
Bridging loan costs: practical guide
This guide explains how to use the Count.ie bridging loan costs. Estimate short-term interest, arrangement fees and redemption. Follow the inputs, method and worked example below, then compare your own scenario.
Guide written .
Open the Bridging loan costs calculatorWhat to prepare
- Collect the purchase, loan, rental or project figures from dated documents.
- Distinguish purchase price, borrowing, one-off acquisition costs and recurring ownership costs.
- Check the property's use, tax year and any scheme eligibility against official guidance.
Understand the inputs
The calculation method
Apply simple monthly serviced interest or compound capitalised interest; fees use original principal.
Worked example
Illustrative inputs and their result.
Example inputs
- Loan principal (€)
- 150000
- Monthly interest rate (%)
- 0.8
- Loan term (months)
- 6
- Arrangement fee (%)
- 2
- Exit fee (%)
- 1
- Legal costs (€)
- 2000
- Capitalise interest monthly
- Yes
Calculated example result
- Total Borrowing Cost
- €13,845.55
- Final Loan Redemption
- €158,845.55
How to interpret the result
A loan payment, gross yield or purchase budget describes only part of ownership. Read exclusions carefully: affordability, lender approval, vacancy, repairs and transaction eligibility may not be fully modelled.
Compare like-for-like properties or financing scenarios, with the same term and cost basis. Where relevant, test a higher interest rate, a vacancy period or a larger maintenance allowance.
Common mistakes to avoid
- Do not compare gross rental yield with net cash flow as if they were the same measure.
- Do not assume a favourable tax result means the property or letting qualifies for a scheme.
- Keep refundable deposits and recurring costs separate from permanent acquisition costs.
Assumptions and sources
Arrangement and legal fees paid upfront. Retained interest, minimum terms, lender criteria and exit risk are separate.
If your case falls outside this scope, use a more suitable calculator or contact us about an unclear method.