Net to Gross Loan Calculator

What this calculator does

A bridging loan is quoted as a gross facility — the headline figure the lender registers against your property. But the cash you actually receive, the net advance, is lower because most short-term lenders deduct the whole term's interest (retained interest) and the arrangement fee up front, along with legal and admin costs. This net to gross loan calculator reverses that maths: tell it the net amount you need to walk away with, and it works out the larger gross facility you must apply for so that, after every deduction, the right amount lands in your account. It also runs the calculation the other way (gross to net) if a broker has already quoted you a gross figure. It is built for property developers, landlords, auction buyers and anyone using regulated or unregulated bridging finance who needs to size a facility accurately before submitting an application. Every input — monthly rate, term, arrangement fee and costs — is editable so you can match a specific lender's quote and avoid the common trap of applying for a gross loan that leaves you short of cash on completion.

How it works

Retained-interest bridging deducts the full term's interest and fees from the gross loan, so the relationship between net and gross is:

gross = (net + legal/admin costs) ÷ (1 − monthlyRate × term − arrangementFee%)

• Retained interest = gross × monthly rate × term (months)
• Arrangement fee = gross × fee % (typically 1–2% of the gross loan)
• Net advance = gross − retained interest − arrangement fee − legal/admin costs
• Gross LTV = gross ÷ property value (first-charge lenders usually cap this at about 70–75%)

Because the interest and fee are charged on the gross figure, you cannot simply add them to your net target — you have to "gross up" by dividing, which is exactly what the calculator does.

Worked example

Suppose you need a net advance of £100,000 to complete an auction purchase, on a 12-month bridge at 1% per month with a 2% arrangement fee and £1,500 of legal and admin costs.

• Deduction factor = 1 − (0.01 × 12) − 0.02 = 1 − 0.12 − 0.02 = 0.86
• Gross facility = (£100,000 + £1,500) ÷ 0.86 = £118,023.26
• Retained interest = £118,023.26 × 1% × 12 = £14,162.79
• Arrangement fee = £118,023.26 × 2% = £2,360.47
• Net advance = £118,023.26 − £14,162.79 − £2,360.47 − £1,500 = £100,000.00 ✓

For comparison, a clean £100,000 net with no fee or costs at 1% over 12 months grosses up to exactly £113,636.36 — the industry benchmark gross-up factor of 0.88.

Frequently asked questions

What is the difference between gross and net on a bridging loan?

The gross loan is the total facility the lender registers against your property. The net advance (or net loan) is the cash you actually receive after the lender deducts retained interest, the arrangement fee and legal/admin costs from the gross amount.

How do I gross up a bridging loan from a net figure?

Divide your required net amount (plus any legal/admin costs) by one minus the total interest and fee percentage. For example, £100,000 net at 1% per month over 12 months with no fee divides by 0.88, giving a gross facility of £113,636.36.

What is a typical bridging loan arrangement fee?

Most UK lenders charge an arrangement (facility) fee of 1% to 2% of the gross loan. It is usually added to the loan and deducted from the net advance rather than paid separately up front.

What is the maximum LTV on a bridging loan?

First-charge bridging lenders typically cap the gross loan at around 70–75% of the property value. Higher LTVs may be available with additional security or against a lower-risk asset, but terms vary by lender.

Source: Bridging finance in the UK is regulated by the Financial Conduct Authority under its consumer credit and mortgage rules. See the FCA guidance for consumers for how short-term lending is overseen. Figures shown are industry-standard mechanics (retained interest and 1–2% arrangement fees); always confirm exact terms with your lender.