on this page

Find your commercial mortgage

Commercial mortgage calculator

HOw to 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!

What do you need the funding for?

Mortgages, development and bridging loans for commercial or buy to let properties

For how long do you want to pay back your loan?

£ 500,000

Interest rate

Typical business loans to cover costs range from 7% - 16% APR depending on the duration, amount and lender.

Loan breakdown

Loan amount

£ -

Total interest amount

£ - 7% APR over a 10 years

Total repayable

£ -

Total monthly repayment

£ - / month

What is a commercial mortgage calculator? 

A commercial mortgage calculator is a tool used to estimate the monthly payments and other key financial details associated with a commercial mortgage loan. Commercial mortgages are a type of loan taken out by a business or investor to purchase or refinance commercial properties, such as office buildings, retail centres, or apartments, for example. Commercial mortgage calculators help borrowers and investors understand the financial implications of a commercial mortgage.  

What factors will affect my commercial mortgage?

Here are some of the key features and calculations that will affect the cost of your commercial mortgage calculator:

  • Loan amount

You can input the principal loan amount, which is the amount you intend to borrow for the commercial property purchase.

  • Interest rate

You can specify the annual interest rate offered by the lender. This rate is a key factor in determining your monthly payments. You will also be able to see the average interest rates typically offered by commercial mortgage lenders.

  • Loan term

Commercial mortgages have varying loan terms, typically ranging from 5 to 20 years. You can select the loan term you're considering.

  • Monthly payment

The commercial mortgage calculator calculates your estimated monthly mortgage payment based on the loan amount, interest rate, and loan term you provided.

  • Total interest paid

It calculates the total interest you will pay over the life of the loan. This can give you an idea of the total cost of borrowing.

Why use a commercial mortgage calculator?

A commercial mortgage calculator can help you understand how much your business could borrow to purchase a property. It will also help you to understand:

  • What your monthly repayments will look like 
  • How long a term length will suit your business 
  • How much total interest you will repay 
  • How much you will repay in total 

How are commercial mortgage repayments calculated? 

The key components in determining the monthly repayment amount for a commercial mortgage include the loan amount, interest rate, and loan term. Here's the factors used to calculate the repayments of a commercial mortgage:

  1. 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.
  2. 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).
  3. 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.

It's important to note that some commercial mortgages may have other factors that can affect the calculation, such as interest-only periods, or adjustable interest rates. In these cases, the calculation can be more complex. It’s important to review the terms of the specific commercial mortgage agreement or consult with a professional to ensure accurate calculations and understanding of the repayment structure. When you search for a commercial mortgage with Capitalise, our property finance specialists will help you understand all of the terms and repayments associated with the commercial mortgage. 

Can I compare commercial mortgage rates? 

At Capitalise, we have a panel of lenders that can offer commercial mortgages. This means when you search for funding, we can match you with lenders most likely to approve your business for a commercial mortgage. You’ll be able to apply to up to 4 lenders in one application, so you can easily compare commercial mortgage rates that your business is offered. You will also receive dedicated support from a property funding specialist who can help you compare commercial mortgage rates available in the market.

Commercial mortgage calculator frequently asked questions

While a commercial mortgage calculator can give you a good idea of how much you could borrow and how much it will cost, you shouldn’t rely only on the calculator. How much you can borrow, which interest rates you could be offered and the term length can all be impacted by factors not included in the calculator, such as the strength of your business’ financial health. You should think of a commercial mortgage calculator as a useful starting point. You’ll need to apply for a commercial mortgage to understand the specific terms and costs your business could get. 

Yes, there is a difference between residential and commercial mortgage calculators. As commercial mortgages are seen as riskier for lenders than residential mortgages, commercial mortgage calculators will have shorter term length periods and higher interest rates. Commercial mortgage lenders typically will also require comparatively larger deposits, so a commercial mortgage calculator will have a different loan to value ratio.

Yes, you can use our commercial mortgage calculator for different loan scenarios by inputting different values for loan amount, interest rate, and loan term. This flexibility can help you compare and analyse different loan scenarios to make informed decisions about your commercial property.

To use the commercial mortgage calculator, you’ll need to have an idea of how much you’re looking to borrow, what interest rate you could access and how long you want to borrow for. 

Commercial mortgage calculators are accurate in providing estimates based on the information you input. However, there are several important considerations to keep in mind, including varying lender criteria, your business credit score, arrangement fees and changing interest rates. They are helpful for initial estimates but should be followed by a funding application to get a completely accurate idea of how much your commercial mortgage will cost. 

Yes, you will need to pay stamp duty on any commercial property that is above the threshold of £150,000. To calculate how much you will pay, the following rates apply for a commercial property: 

  • £0 - £150,000 = 0%
  • £150,001 - £250,000 = 2%
  • £250,001+ = 5%