Commercial mortgage calculator
A commercial mortgage is a long-term loan secured on business property, repaid in monthly instalments over 15 to 25 years. Enter the property value, the loan, the annual rate and the term to see your monthly repayment, your loan-to-value and the total cost of the mortgage over its life.
Used to work out the loan-to-value (LTV).
Owner-occupied commercial mortgages commonly run from about 6% to 9% a year.
Commercial mortgages commonly run 15 to 25 years.
Most lenders cap around 70 to 75%.
The whole interest cost as a share of the loan, over the full term.
The total interest spread evenly over the term. Far lower than the APR because a mortgage runs for decades and the balance falls throughout; compare on APR, not flat rate.
Indicative estimate for limited-company business finance, not a quote or a credit decision. Rates you enter are your own; no credit search is run. Reviewed July 2026.
Loan-to-value
Each payment: interest vs principal
Balance paid down over the term
What you repay
Get an indicative commercial mortgage quote
No obligation, no credit search. We are a broker for limited-company business finance and may receive commission from the lender.
Worked example
For £600,000 commercial mortgage at 7.0% over 20 yr, the monthly repayment is £3,256. Loan-to-value (LTV): 70.0%. Total interest: £361,501. Total repayable: £781,501.
How it works
- A commercial mortgage is secured on the business property and repaid over a long term, usually 15 to 25 years.
- Each monthly payment covers the interest on the balance first, then reduces the capital.
- Lenders lend against the property value, the loan-to-value, usually up to 70 to 75%.
- A longer term lowers the monthly payment but increases the total interest over the life of the loan.
- Rates can be fixed or variable; use your own quoted rate for an accurate figure.
How the monthly repayment is worked out
The calculator takes the loan amount you enter, applies your annual rate as a monthly rate, and spreads the balance into equal payments across the term using a standard amortising formula. On a capital-and-interest mortgage, interest is charged on the balance still outstanding, so your early payments are mostly interest and later ones mostly capital; the balance falls slowly at first, then faster. That is why lengthening the term from, say, 20 to 25 years drops the monthly figure but pushes up the total interest, since you are borrowing the same money for longer. The tool also derives your loan-to-value as the loan divided by the property value, and shows the total repayable over the full term so you can see the true lifetime cost, not just the headline monthly. Two structural notes the figure here assumes: it models a fully amortising, single-rate mortgage. Many commercial deals are written interest-only for a period, or on a rate that resets after a fixed spell, both of which change the real monthly. Treat the output as a planning figure; the lender sets the actual rate and structure once it has valued the property and assessed your business.
Amortising or interest-only, and how long to run it
The two big structural choices on a commercial mortgage are the repayment basis and the term, and they pull in different directions. A capital-and-interest (amortising) mortgage clears the debt over the term and builds equity in the property with every payment, which is the usual choice for an owner-occupier buying premises to trade from. An interest-only mortgage keeps the monthly cost low by never reducing the capital, so the full loan is still due at the end, repaid by refinance, sale or accumulated funds. Interest-only is common on investment and portfolio deals where the borrower wants to maximise cash flow or rental yield, and rarer on owner-occupier cases unless there is a clear exit. Term length is the other lever. Commercial mortgages commonly run 15 to 25 years, occasionally up to 30. A longer term eases the monthly payment and can help serviceability, but costs more in total interest and may run past the useful life of an older building. As a broker we model both bases and a couple of term options on your own numbers before anything goes to a lender, because the right combination depends on your cash flow and your plans for the property, not on the longest term available.
What actually drives the rate and the decision
Commercial mortgage pricing is built up from a margin over a reference rate, usually the Bank of England base rate or SONIA, so headline rates move with the wider market as well as with your deal. On top of that base, the lender sets the margin from three things. First, the property: type, condition, location and how easily it could be re-let or resold all feed in; standard offices, shops, industrial units and warehouses price more keenly than specialist or single-use buildings. Second, the loan-to-value: a lower LTV means less lender risk and a sharper rate, which is why a bigger deposit often does more for your pricing than shopping around. Third, the covenant and income: your trading history, profitability and, for investment deals, the rental income all matter, because the lender needs to see the property or the business comfortably covering the payments (its serviceability test, which the DSCR calculator covers in detail). Watch the one-off costs too: a valuation fee, an arrangement fee (commonly around 1 to 2 percent of the loan, sometimes added to the balance) and legal fees all sit outside the monthly figure but shape the true cost of borrowing.
How much you can borrow, and what lenders look for
Most commercial mortgage lenders cap at 70 to 75% loan-to-value for owner-occupiers, and often a little lower, around 65 to 70%, for investment property, so plan on a deposit of at least a quarter to a third of the purchase price. The loan size itself is bounded by two tests: the LTV against the property, and whether the income comfortably services the payments, so a strong building will not unlock a bigger loan than the trading profit or rent can support. Lenders assess two questions in parallel: is the property good security, and can the borrower afford it through the term. To move a case quickly, have ready the last two or three years of accounts, recent management figures and bank statements, details of the property and any existing tenancy or lease, and a short note on how the premises fit the business. Because we place these deals rather than lend ourselves, we match your case to lenders whose appetite fits the property type, the LTV and your trading profile, instead of sending one application to a single desk. Any figure discussed before a formal offer is indicative; approval, rate and term are the lender's decision and depend on your business.
How we help you get a sharper rate
A handful of things genuinely move the price on a commercial mortgage, and our job as your broker is to line them up in your favour before a single lender sees the case. We take it to the right lender first. Commercial mortgage appetite varies widely; high-street banks, challenger banks and specialist lenders each price property types, LTV bands and sectors differently, and approaching them one by one is slow and leaves credit footprints. We hold that criteria detail across our panel, so we can focus your case on the lenders most likely to price it keenly and package it to be assessed properly the first time. We structure the deal to price well. We will test the loan at a lower LTV, weigh amortising against interest-only, match the term to your cash flow rather than the maximum available, and present the property and its income in the terms a lender underwrites. Small structuring choices often move the rate more than shopping around does. We tell you straight what is realistic. We cannot promise a rate or an approval, because those sit with the lender, but we can give you an honest read on where your deal is likely to land and save you the hours a scattergun search would cost. It costs nothing to have us model it, and there is no obligation. Send us the property and your numbers and we will come back with indicative terms from lenders whose criteria fit.
Indicative commercial mortgage terms by deal type
| Deal type | Typical LTV | Typical rate (per year) | Typical term |
|---|---|---|---|
| Owner-occupier, standard premises | Up to 70 to 75% | 6% to 8.5% | 15 to 25 years |
| Owner-occupier, specialist or single-use | Up to 60 to 65% | 7% to 9.5% | 10 to 20 years |
| Investment property, standard commercial | Up to 65 to 70% | 6.5% to 9% | 15 to 25 years |
| Semi-commercial (part residential) | Up to 70 to 75% | 6.5% to 9% | 15 to 25 years |
| Interest-only investment deal | Up to 65 to 70% | 6.5% to 9% | Up to 25 years, capital due at end |
| Higher-LTV or complex covenant | 75%+ with extra security | 8% to 11% | 10 to 20 years |
Illustrative ranges for UK limited companies as of July 2026, not a quote or an offer. Rates are typically a margin over Bank of England base rate or SONIA and move with the market; your LTV, rate and term depend on the property, the income and your covenant, and are set by the lender. Arrangement, valuation and legal fees are additional. CoreFi is a broker, not a lender, and is usually paid a commission by the lender on completion; this does not add to your rate.
Want an indicative quote, not just an estimate?
This calculator is a planning estimate. Tell us about your deal and we will match it to lenders whose criteria fit and bring you indicative terms in plain English. No obligation, and no cost to start.
Get matched with lendersFrequently asked questions
How is a commercial mortgage repayment calculated?
On a reducing-balance basis: the same payment each month, with interest charged on the balance outstanding, so early payments are more interest and later ones more capital. The calculator uses your rate and term to work out the monthly figure.
What LTV can I get on a commercial mortgage?
Owner-occupied commercial mortgages commonly go up to 70 to 75% of the property value, sometimes higher with additional security. Investment property is often a little lower. The calculator shows your LTV so you can see where you sit.
How long can a commercial mortgage run?
Typically 15 to 25 years, and up to 30 with some lenders. A longer term lowers the monthly payment but costs more in total interest, both of which the calculator shows.
Is this a quote?
No, it is an indicative estimate for planning. Real terms depend on the property, the covenant and the lender. CoreFi is a broker for limited-company commercial finance and can source indicative terms from the panel.
This calculator gives an indicative estimate of business finance for limited companies. It is not a quote, an offer, or a credit decision, and no credit search is run. CoreFi is a trading name of JG Core Ltd (company 16218779), a finance broker not a lender, and may receive commission from the lender. Figures reviewed July 2026.