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Commercial mortgage calculator

What are the monthly repayments on a commercial mortgage?

A £500,000 commercial mortgage over 20 years at 7% costs about £3,876 a month and £930,359 in total. Add a typical £7,500 arrangement fee to the balance and it becomes £3,935 a month and £944,314. Commercial mortgages usually need a 25%–40% deposit, so a £500,000 loan implies a property worth £667,000 to £833,000.

Updated . Lendus is an introducer, not a lender — these figures are indicative and not a quote.

£500,000
240 months
7%

UK commercial mortgages typically run 5.5%–9% depending on LTV, sector and covenant strength.

£7,500

Commonly 1%–2% of the loan, often added to the balance.

Your estimate

Indicative only. Not a quote and not an offer of finance.

What this calculator assumes

Frequently asked questions

How much deposit do I need for a commercial mortgage?
Typically 25% to 40% of the property value. Owner-occupied premises for an established trading business can sometimes reach 75%–80% loan-to-value; investment property, specialist sectors such as pubs and care homes, and weaker covenants sit nearer 60%–65%.
How long can a commercial mortgage run?
Usually 5 to 25 years, with 15 to 20 years the most common. Terms are generally shorter than residential mortgages because lenders underwrite against the trading business or the tenant covenant rather than a salaried borrower.
Are commercial mortgage rates fixed or variable?
Both exist. Most UK commercial mortgages fix for an initial 2 to 5 years and then move to a variable rate set at a margin over the Bank of England base rate or SONIA. Longer fixes are available but carry a rate premium and heavier early repayment charges.
Is the interest tax deductible?
Interest on a commercial mortgage taken out for business purposes is generally an allowable expense against profits, unlike capital repayments. Treatment depends on how the property is held and used — take advice from your accountant rather than relying on a general rule.

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