Commercial mortgage calculator
Estimate the monthly payment, loan to value and total interest on a mortgage for business or investment property.
How this calculator works
The mortgage amount is the property value less your deposit, and loan to value (LTV) is that amount as a percentage of the value. On a capital and interest basis, the calculator works out a level monthly payment that clears the mortgage by the end of the term.
On an interest-only basis, the monthly payment covers interest alone and the full mortgage amount is still owed at the end. Total interest is shown either way; on interest only, remember the capital still has to be repaid, usually from a sale or refinance.
What lenders will look at
Commercial lenders usually ask for a larger deposit than on a home, often around 25% or more, and set their own maximum LTV by property type and borrower. Owner-occupied premises are assessed mainly on the trading business; investment property mainly on the rent and the tenant.
Lenders also test affordability, often with a debt service coverage ratio or a rental cover test. Valuation, legal and arrangement fees add to the cost of buying. Our page on buying business premises covers the process.
Find out more about commercial mortgages, or tell us what you need and we will search the market for lenders suited to your case.
Questions about this calculator
How much deposit do I need for a commercial mortgage?
It depends on the lender, the property and the business, but commercial lenders commonly look for a deposit of around 25% or more of the value. Specialist or unusual properties may need more.
What is the difference between capital and interest and interest only?
Capital and interest payments clear the mortgage by the end of the term. Interest-only payments are lower, but the full amount borrowed is still owed at the end, so lenders will want to see a credible plan to repay it.
Does the calculator include fees?
No. Valuation, legal, arrangement and any broker fees are not included. It is free to enquire; any broker fee is disclosed separately before you proceed.
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Want real figures for your business?
A calculator can only use the numbers you give it. Tell us what the funding is for and we will search our panel of 300+ lenders for options suited to your case. No obligation, and free to enquire.