Commercial mortgage calculator
A new space.
A clearer picture.
Start with the property price and your deposit. See the loan to value, the monthly commitment and the total cost of a capital repayment mortgage.
Room for the
whole picture.
Allow separately for taxes, legal fees, valuations and the other costs of buying. The mortgage is the biggest number, not the only one.
It models capital and interest repayments, not an interest-only mortgage. Loan to value is a calculation, not a lending offer.
Try the business loan calculator instead.
Behind the numbers
A clearer estimate.
A better question.
How the figures are worked out
The loan is the purchase price minus your deposit. Loan to value is the loan divided by the purchase price, shown as a percentage. The monthly payment uses the standard repayment formula for a capital repayment mortgage at a fixed rate.
Monthly payment = P × r ÷ (1 − (1 + r)−n)
P is the amount borrowed, r is the annual interest rate divided by 12, and n is the number of monthly payments.
A worked example
Buying a £250,000 property with a £75,000 deposit means borrowing £175,000, a loan to value of 70%. Over 20 years at 8% a year, the monthly payment is £1,463.77 and the total repayable is £351,305, including £176,305 of interest.
Over 25 years, the payment falls to £1,350.68 a month, but the interest rises to £230,204.
What this calculator assumes
The loan has a fixed annual interest rate divided into 12 monthly rates. Repayments are equal and monthly, and the balance is fully repaid at the end. A fee entered here is paid separately upfront.
The default rate is an illustration chosen for the calculator. It’s not a Business Loan Advice rate, a representative APR or an indication of eligibility.
What it doesn’t include
Variable rates, late charges, early repayment costs, interest-only periods, balloon payments, daily interest conventions and fees financed into the loan aren’t modelled. Rounding can produce a small difference from a lender’s schedule.
A flat monthly rate, a factor rate and an APR aren’t interchangeable. Ask the lender for a repayment schedule and the total cost in pounds before comparing.
How to compare offersLet’s clear a few things up
Questions about
the numbers.
Straight answers about how the calculation works and what it can and can’t tell you.
How much can I borrow on a commercial mortgage?
It depends on the property, how it will be used, your deposit and the income available to cover the repayments, such as trading profit or rent. Each lender sets its own maximum loan to value. The calculator shows the loan to value for your figures, not what a lender will offer.
How much deposit do I need for a commercial mortgage?
There’s no single figure. Lenders set deposit requirements by property type, use and the strength of the business. Try different deposits to see how the loan to value and monthly payment change. Our commercial mortgages guide covers deposits, costs and repayment types.
What interest rate should I use?
Use the rate from a quote if you have one. Commercial mortgage rates depend on the lender, the property, the loan to value and the business, and they can be fixed or variable. The default 8% is an illustration, not an offer or a typical rate.
Does it work for an interest-only commercial mortgage?
No. It models capital and interest repayments. On an interest-only basis, the monthly interest is the loan multiplied by the annual rate and divided by 12, so £175,000 at 8% is about £1,166.67 a month, and the full £175,000 is still owed at the end.
Can I use it for an investment property?
Yes. The repayment calculation is the same for premises your business occupies and for commercial investment property. Lenders assess them differently, so the rate, deposit and term available may differ.
Does it include stamp duty and buying costs?
No. You can add an upfront finance fee, but the calculator doesn’t estimate Stamp Duty Land Tax or its equivalents in Scotland and Wales, legal costs, valuations, surveys or insurance. Budget for these separately.
From working it out to moving forward
Your next step.
Loan options by email.
Tell us what you need and where to send your loan options. Request quotes to compare, with no obligation to go ahead.
You never pay us. If you go ahead with finance through an introduction, the lender or broker may pay us a commission. Business Loan Advice is not a lender or broker and doesn’t give regulated advice. We’ll confirm any introduction with you before sharing your details. A request is not an application or a guarantee of an offer.