Use this commercial mortgage calculator to work out the monthly payments, arrangement fee and total interest on a mortgage for a shop, office, warehouse, pub or other business property. Enter the price, your deposit, the rate and the term, and choose repayment or interest only.
Your commercial mortgage
- Loan
- –
- Loan to value
- –
- Monthly payment
- –
- Arrangement fee
- –
- Total interest
- –
In the example, a £500,000 property with a 30% deposit needs a £350,000 loan. At 7% over 20 years on a repayment basis, the payment is £2,713.55 a month.
How to use the commercial mortgage calculator
- Enter the property price or valuation.
- Enter your deposit as a percentage. Most lenders lend up to 60% to 75% of the value.
- Enter the interest rate and term. Commercial terms are usually up to 25 years.
- Choose repayment or interest only, and add the arrangement fee.
How commercial mortgages differ from home loans
Commercial mortgages are usually not regulated by the Financial Conduct Authority, unless you or your family will live in part of the property. Lenders look closely at the business: trading history, accounts, cash flow and the strength of the tenant if you are letting the property out.
- Bigger deposits: usually 25% to 40%.
- Variable pricing: rates are often a margin over Bank Rate, with fixed rates for 2 to 5 years available.
- Rent or profit cover: lenders often want rent or profit to cover the payments by 125% to 150%.
- Fees: arrangement, valuation and legal fees are higher than for a home.
Commercial mortgage calculator UK examples
| Loan | Repayment a month | Interest only a month |
|---|---|---|
| £150,000 | £1,163 | £875 |
| £250,000 | £1,938 | £1,458 |
| £350,000 | £2,714 | £2,042 |
| £500,000 | £3,876 | £2,917 |
| £750,000 | £5,815 | £4,375 |
Change the rate in the commercial mortgage calculator to see how a 1% move affects your budget. On a £350,000 loan over 20 years, each 1% adds roughly £200 a month.
Owner-occupied or investment?
If your own business will trade from the property, lenders focus on your profits. If you are buying to let to a business tenant, they focus on the lease length, the rent and the tenant’s strength. Semi-commercial property, such as a shop with a flat above, can be funded by either type of lender.
Costs on top of the mortgage
Budget for commercial stamp duty, legal fees, surveys and any VAT on the price. In England, non-residential SDLT starts at 2% on the part of the price from £150,001 to £250,000 (GOV.UK rates). Use our commercial stamp duty calculator, and for residential lets the buy to let mortgage calculator.
Worked example: buying your own premises
A dental practice pays £36,000 a year in rent. It buys a £500,000 building with a £150,000 deposit. The commercial mortgage calculator shows £2,713.55 a month at 7% over 20 years, about £32,600 a year. That is less than the rent, and the practice owns the building at the end. The lender will want to see that profits cover the payments comfortably, and the practice needs cash for stamp duty, fees and fitting out.
Frequently asked questions
How much deposit do I need for a commercial mortgage?
Usually 25% to 40% of the property value. Strong businesses with good accounts may borrow up to 75%.
Is this a business mortgage calculator?
Yes. Business and commercial mortgages work the same way for the payment maths; the commercial mortgage calculator works for both.
Can I get an interest-only commercial mortgage?
Yes, many lenders offer interest-only terms, sometimes for part of the term, but you need a plan to repay the loan at the end.
Can a limited company take a commercial mortgage?
Yes. Many commercial mortgages are taken by companies, often with personal guarantees from directors.
About this calculator
This commercial mortgage calculator uses the standard monthly repayment formula. Guidance was checked against MoneyHelper on 9 November 2026. Real offers depend on the lender’s view of your business. Results are estimates.