Bridging loan rates are quoted monthly, not annually. A rate of 0.75% per month sounds modest, but the true annualised cost is higher than the simple multiplication of 0.75% times 12 suggests, because rolled-up interest compounds monthly. Add the arrangement fee and any exit fee into the calculation and the effective annual cost of the facility rises further. This tool converts the monthly figure into an annualised APRC with and without fees, shows how the APRC changes at different term lengths, and places the result on a comparison bar against other common borrowing types.
APRC is most useful as a cross-product comparison tool. For day-to-day bridging decisions, the monthly rate, net advance, and total cost are typically more practical figures. But when comparing bridging against a remortgage, a secured loan, or an unsecured alternative, the APRC puts all of them on the same annual scale. All figures are illustrative and the tool does not constitute financial advice.
At a Glance
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0.75% per month is not 9% per year. Compounding pushes the true annual rate higher.
Simple multiplication (0.75% x 12 = 9%) ignores compounding. With rolled-up interest, each month of interest is calculated on the previous month’s balance plus the interest already accrued. The compounded annual equivalent of 0.75% per month is approximately 9.4%. The gap widens at higher monthly rates.
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Fees push the all-in APRC significantly above the interest-only figure.
A 2% arrangement fee on a 9-month bridge adds several percentage points to the annualised cost because the fee is a fixed cost amortised over less than a year. The fee contribution tile shows exactly how much the fees add, and the term sensitivity cards show how this effect amplifies on shorter terms.
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The comparison bar contextualises bridging cost against other borrowing types.
A bridging all-in APRC of 15% to 20% looks expensive against a 5% mortgage. But bridging is priced for speed and flexibility over months, not for long-term cost efficiency over decades. The comparison bar shows where bridging sits relative to mortgages, secured loans, and unsecured loans so the borrower can see the premium they are paying for the short-term access.
Interactive tool
Bridging loan APRC calculator
Convert a monthly bridging rate to an annualised APRC, with and without fees. See how the effective annual cost changes at different term lengths and how it compares to other borrowing types.
All figures are illustrative. Nothing you enter is stored or transmitted.
Interest-only APRC
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Monthly rate compounded annually, no fees
All-in APRC (with fees)
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Interest + arrangement fee + exit fee annualised
How this compares to other borrowing types (approximate midpoints, illustrative)
How the all-in APRC changes at different term lengths
Interest-only APRC is calculated as (1 + monthly rate)^12 – 1. All-in APRC annualises the total cost of credit (interest + fees) relative to the net advance over the planned term. Comparison ranges are approximate UK midpoints for 2025/26 and are not quotes. On shorter terms, the fixed fees are amortised over fewer months, pushing the all-in APRC higher even though the total pound cost may be lower. This tool does not constitute financial advice. All figures are illustrative only.
About this tool
What it calculates
Interest-only APRC and all-in APRC including fees
Enter the monthly rate, arrangement fee, exit fee, and term. The tool calculates two APRC figures: interest-only (compounded monthly rate annualised) and all-in (total cost of credit annualised against the net advance). The fee contribution tile shows the gap between the two.
Key features
Term sensitivity and cross-product comparison bar
Four term cards (3, 6, 9, 12 months) show how the all-in APRC changes at different term lengths. Shorter terms push the APRC higher because fixed fees are amortised over fewer months. The comparison bar places the all-in APRC alongside illustrative ranges for mortgages, secured loans, and unsecured loans.
Why APRC matters for bridging
Monthly rates are the standard language of the bridging market. But when a borrower is deciding between bridging and another form of borrowing, such as a remortgage, a secured loan, or an unsecured personal loan, the monthly figure cannot be compared directly because those products are quoted annually. APRC translates the monthly bridging cost into the same annual basis, making the comparison possible.
The interest-only APRC (the compounded monthly rate) shows the pure cost of the interest. The all-in APRC adds the arrangement fee and exit fee, annualised against the net advance. The all-in figure is higher, sometimes significantly so, because the fees are a fixed cost that must be spread across the term. This is why comparing bridging quotes on the monthly rate alone can be misleading: a quote with a lower rate and a higher fee can produce a higher all-in APRC than one with a higher rate and a lower fee. The quote comparator resolves this by modelling the full cost side by side.
How fees affect the APRC
A 2% arrangement fee on a 12-month bridge is spread over a full year, adding approximately 2 percentage points to the annualised cost. The same fee on a 3-month bridge is spread over a quarter of a year, effectively adding approximately 8 percentage points annualised. This is why shorter bridges have higher all-in APRCs even though the total pound cost is lower: the fixed fee dominates the annualised calculation on a short term.
This does not mean shorter terms are worse. A 3-month bridge at a higher APRC may cost £8,000 in total, while a 12-month bridge at a lower APRC costs £25,000. The APRC is an annualised efficiency measure, not a total cost measure. For choosing between term lengths on the same product, total cost and net advance are more useful. For choosing between a bridge and a mortgage, APRC is the right comparison. The guide to how bridging interest is calculated covers the underlying mechanics.
Comparing bridging against other products
The comparison bar places the all-in APRC alongside illustrative ranges for residential mortgages (typically 4% to 7% in 2025/26), secured second charge loans (typically 6% to 15%), and unsecured personal loans (typically 6% to 25%). Bridging typically sits in the 10% to 25% range on an all-in basis, depending on the monthly rate, fees, and term.
The premium reflects what bridging offers that other products do not: speed, flexibility, and a focus on the property and exit rather than the borrower’s income. A borrower who can wait 8 weeks for a mortgage at 5% will always pay less annually than one who needs bridging at 15%. But the borrower who loses an auction lot, misses a chain-break deadline, or cannot access mortgage finance for a property that needs work may find that the cost of not borrowing is higher than the bridging premium. The bridging vs alternatives guide covers when the premium is justified and when it is not.
Related tools
Full cost modelling
Bridging loan calculator
The core calculator models the full cost in pounds including net advance, total interest, and total fees. Use it alongside the APRC converter when you need both the annual comparison figure and the practical pound cost. Use the tool
Quote comparison
Two-quote comparator
When two quotes have different rates and different fees, the comparator shows the total cost, net advance, and cost per pound for each, resolving the ambiguity that headline rate alone cannot. Use the tool
Not sure what to look at next?
All of our bridging loan guides and tools in one placeFrequently asked questions
Why is the all-in APRC so much higher than the monthly rate multiplied by 12?
Two factors combine. First, compounding: each month of rolled-up interest accrues on the balance plus all previous interest, not just the original loan. This pushes the annual equivalent above the simple multiplication. Second, fees: the arrangement fee and any exit fee are fixed costs that, when annualised, add several percentage points to the effective rate. On short terms the fee effect is particularly large because the fixed cost is spread over fewer months.
For example, 0.75% per month compounded gives an interest-only APRC of approximately 9.4%, not 9.0%. Adding a 2% arrangement fee on a 9-month term lifts the all-in APRC to approximately 12% or higher. The tool shows both figures and the gap between them so the borrower can see exactly how much the fees contribute.
Should I use APRC to choose between two bridging quotes?
Not on its own. APRC is most useful for comparing bridging against a different product type (mortgage, secured loan, personal loan) because it puts them on the same annual basis. For comparing two bridging quotes with each other, total cost, net advance, and cost per pound borrowed are more practical metrics because they capture the actual pound amounts involved. The quote comparator is designed specifically for that comparison.
The exception is when two bridging quotes have very different term lengths. A 3-month quote and a 12-month quote have different total costs, but the APRC normalises for the duration difference and shows which is more cost-efficient on an annualised basis. Even then, the practical question is usually “which costs less in total for the period I actually need?” rather than “which is more efficient per year?”
Why does a shorter term show a higher APRC?
Because the arrangement fee is a fixed cost that gets amortised over the term for the APRC calculation. On a 12-month bridge, a 2% fee is spread over 12 months: each month carries one-twelfth of the fee. On a 3-month bridge, the same fee is spread over 3 months: each month carries one-third. When annualised, the shorter term produces a much higher APRC even though the total cost in pounds is lower. This is a mathematical feature of annualising short-term costs and does not mean the shorter bridge is a worse deal.
The term sensitivity cards in the tool make this visible by showing the all-in APRC at 3, 6, 9, and 12 months on the same inputs. The pattern is always the same: shorter terms show higher APRCs. This is why total cost in pounds, not APRC, is the right metric for choosing between term lengths on the same facility.
Is the bridging APRC directly comparable to a mortgage APR?
Broadly yes, both measure the annualised cost of borrowing including fees and interest. However, there are differences in how they are calculated. Mortgage APRC is calculated under specific FCA rules (MCOB 10A) that make assumptions about the reversion rate after a fixed period. Bridging APRC is typically calculated more simply as the total cost of credit annualised against the net advance. The comparison bar in the tool uses this simpler method for bridging and shows mortgage ranges as approximate market midpoints, which is sufficient for the purpose of understanding where bridging sits in the cost spectrum relative to longer-term products.
For a precise comparison between a specific bridging quote and a specific mortgage offer, using the pound-cost figures (total cost over the actual expected term) is more reliable than comparing APRC figures that may have been calculated using different methodologies.
Squaring Up
Monthly bridging rates are not directly comparable to annual mortgage or loan rates without conversion. The APRC puts bridging on the same annual basis as other products, making the cost premium visible and quantifiable. The all-in version, which includes fees, is the more honest figure because the arrangement fee is a real cost that the interest-only APRC misses. The term sensitivity cards show that shorter bridges produce higher APRCs despite lower total costs, which is a useful caution against using APRC as the sole decision metric for bridging.
Continue your research
Guides, calculators, and comparators covering every aspect of bridging finance Explore guides and toolsThis tool is for illustrative purposes only and does not constitute financial advice. APRC calculations use a simplified annualisation method and may differ from the formal APRC methodology used by regulated lenders under FCA rules. Comparison ranges for other borrowing types are approximate UK midpoints for 2025/26 and are not quotes. Your property may be repossessed if you do not keep up repayments on a bridging loan. Actual outcomes will depend on your individual circumstances.
