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Property financeLast updated: 15 Jul 2026
Free commercial mortgage calculator
Our commercial mortgage calculator gives you an instant estimate of your monthly repayments and the total cost of your loan, so you can see what a commercial mortgage would cost your business before you apply.
Commercial mortgage calculator
Use our commercial mortgage calculator to see what your monthly repayments are likely to look like, as well as the total cost of the loan including interest. Just let us know how much you'd like to borrow, how long you'd like the repayments to be over and preferred interest rates. If something looks like a good match, you can get started with your application right away!
Mortgages, development and bridging loans for commercial or buy to let properties
For how long do you want to pay back your loan?
How much you want to borrow?
£25,000
Interest rate
Typical business loans to cover costs range from 7% - 16% APR depending on the duration, amount and lender.
Loan amount
£ -
Total interest amount
£ -
11% APR over 10 years.
Total repayment amount
£ -
Total monthly repayment
£ - / month
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What is a commercial mortgage calculator?
A commercial mortgage calculator is a free tool that estimates your monthly repayments and the total cost of borrowing against a commercial property, letting you test different loan amounts, terms and rates before you commit to anything. If you want the full picture on what a commercial mortgage is and how it works, read our commercial mortgage guide.
Because a commercial mortgage is secured against a property, the numbers involved are usually far bigger than an unsecured business loan, which is exactly why it's worth running the figures properly first. A few minutes with the calculator can save you from underestimating what a property purchase will really cost your business each month.
What factors affect your commercial mortgage repayments?
Four things determine what you'll actually pay each month on a commercial mortgage: how much you borrow, the interest rate, the loan term, and whether you repay capital and interest or interest only.
Factor | What it affects |
|---|---|
Loan amount | The bigger the loan, the higher your monthly repayment and total interest, all else being equal |
Interest rate | A higher rate increases both your monthly cost and the total interest you'll pay over the loan |
Loan term | A longer term lowers your monthly repayment but increases the total interest paid over time |
Repayment type | Capital repayment clears the loan by the end of the term, interest only leaves the full balance to repay or refinance |
Commercial mortgage terms typically run from 5 to 25 years, and the right term for your business depends on how comfortable your cash flow is with a higher monthly cost against a shorter overall term.
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Interest only or capital repayment, which costs less?
Interest only repayments cost less each month but leave the full loan balance still owing at the end of the term, while capital repayment costs more each month but clears the loan completely.
On a £500,000 commercial mortgage at 7% APR over 20 years, interest only repayments come to around £2,917 a month, but you'd still owe the full £500,000 at the end of the term. Capital repayment costs more month to month, around £3,876, but you'd owe nothing once the term ends.
Many commercial mortgages, especially on investment properties, are arranged on an interest only basis, with the borrower planning to repay the balance through the sale of the property, rental income, or a refinance further down the line. It's worth having a clear plan for how you'll clear the balance before choosing this route.
What deposit do you need for a commercial mortgage?
Most lenders ask for a deposit of at least 25% of the property's value, meaning the loan to value on a commercial mortgage is typically capped at 75%. Some lenders will go up to 80% loan to value for strong owner occupied applications, while riskier property types or weaker applications may only be offered 50% to 65%.
Loan to value | Deposit needed | Typical scenario |
|---|---|---|
Up to 65% | 35%+ | Investment properties, weaker trading history, or higher risk sectors |
Up to 75% | 25%+ | The standard range most lenders work to for owner occupied and investment commercial mortgages |
Up to 80% | 20%+ | Strong owner occupied applications with a solid trading history and good affordability |
The lower your loan to value, the more competitive the rate a lender is likely to offer, since a bigger deposit reduces their risk if property values fall.
What commercial mortgage rates are available right now?
Commercial mortgage rates in the UK currently range from around 6% to 10% APR, with the exact rate depending on your loan to value, the property type, and your business's financial profile. The Bank of England base rate sits at 3.75% as of July 2026, and this base rate directly influences the variable and fixed rates lenders offer on commercial mortgages.
Loan to value | Typical rate range | Who it suits |
|---|---|---|
Up to 65% | 6% to 7.5% APR | Strong applications with a large deposit and stable trading history |
Up to 75% | 7% to 9% APR | The most common range for owner occupied and investment purchases |
Up to 80% | 8.5% to 10%+ APR | Higher loan to value deals, or applications with a shorter trading history |
These figures are illustrative and based on typical UK market ranges as of July 2026, not a quote. Your actual rate will depend on your business's credit profile, the property type, and the lender's own criteria. Run your own numbers with the calculator above, then check your eligibility with a Capitalise account to see what your business could actually be offered.
How are commercial mortgage repayments calculated?
Loan amount (principal)
This is the total amount of money you borrow from the lender to purchase or refinance a commercial property. It's also known as the principal amount.
Interest rate
The interest rate is the annual rate at which the lender charges interest on the outstanding loan balance. It is usually expressed as a percentage. The interest rate can be fixed (remains constant throughout the loan term) or variable (may change over time based on market conditions or the terms of the loan).
Loan term
The loan term is the number of years or months over which you agree to repay the loan. Common commercial mortgage terms range from 5 to 25 years or more.
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Am I eligible for a commercial mortgage?
Most lenders on the Capitalise panel look at your deposit, trading history, credit profile and the property itself when assessing a commercial mortgage application. Here's what they usually require:
Illustrative examples only
Example commercial mortgage repayments
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£250,000 over 15 years at 7.5% APR
Capital repayment costs around £2,318 a month, with total interest of about £167,156 over the full term. On an interest only basis, you'd pay around £1,562 a month, with the £250,000 still owing at the end.
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£500,000 over 20 years at 7% APR
Capital repayment costs around £3,876 a month, with total interest of about £430,359 over the full term. On an interest only basis, you'd pay around £2,917 a month, with the £500,000 still owing at the end.
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£1,000,000 over 25 years at 6.5% APR
Capital repayment costs around £6,752 a month, with total interest of about £1,025,621 over the full term. On an interest only basis, you'd pay around £5,417 a month, with the £1,000,000 still owing at the end.
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What documents do you need to apply?
Having these ready will speed up your commercial mortgage application:
Looking for something else? Try our other loan calculators
Apply for a commercial mortgage today
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