Commercial mortgage calculator
Estimate the deposit and monthly repayment on a warehouse or industrial unit. Capital and interest, or interest only.
Your estimate
Illustrative only. Not a quote or an offer of finance.
How the commercial mortgage calculator works
The calculator takes the property price and your loan to value to work out the loan and the deposit. On capital and interest it then applies the standard amortising repayment formula, so the loan is fully repaid over the term. On interest only it charges interest on the full loan each month and leaves the loan outstanding at the end, to be cleared by sale or refinance.
The capital and interest monthly payment is the loan multiplied by the monthly rate, divided by one minus one plus the monthly rate to the power of minus the number of months. The monthly rate is the annual rate divided by twelve. Interest only is simply the loan multiplied by the annual rate, divided by twelve.
What drives a real commercial mortgage rate
A lender prices a commercial mortgage on the tenant covenant and the unexpired lease term for an investment, or the trading business for an owner-occupier, plus the loan to value, the building and your track record. Rates move with the wider market, so we quote them deal by deal. Use the calculator to model the deposit and the monthly cost, then send us the deal for a real view on terms.
Worked example
On a 1.2 million pound industrial unit at 70 percent loan to value, the loan is 840,000 pounds and the deposit is 360,000 pounds. At 7.5 percent over 20 years on capital and interest, the monthly payment is roughly 6,770 pounds. On interest only at the same rate the monthly cost falls to about 5,250 pounds, with the 840,000 pound loan still outstanding at the end.
Commercial mortgage calculator: common questions
How accurate is this commercial mortgage calculator?
It gives a realistic illustration of the monthly repayment on a commercial mortgage from the price, loan to value, rate and term you enter. Real commercial mortgage rates depend on the tenant covenant, the loan to value, whether the unit is owner-occupied or an investment, and the lender, so treat the result as a guide rather than a quote.
What loan to value can I get on a commercial mortgage?
Most commercial mortgages on a let or owner-occupied warehouse reach around 65 to 75 percent loan to value, so the deposit is usually a quarter to a third of the price. Owner-occupiers can sometimes borrow more against the trading business. Set the loan to value in the calculator to model your own deposit.
Should I choose capital and interest or interest only?
Capital and interest repays the loan over the term, so the balance reaches zero and the monthly cost is higher. Interest only keeps the monthly cost down but leaves the full loan outstanding at the end, to be repaid by sale or refinance. Investors often use interest only; owner-occupiers more often amortise. Toggle between them above to compare.
Want a real commercial mortgage quote?
Send us the warehouse and we will come back with a view on fundability and likely terms within one working day.