Buying premises for your business, refinancing a property you already own, or adding a commercial unit to your portfolio? A commercial loan is rarely an off-the-shelf product, so before you sit down with a lender it helps to know roughly what the repayments might look like. Our commercial loan calculator gives you a quick estimate of your monthly payments and the total cost over the term, whether you’re repaying capital and interest or interest only.
Set your figures below and switch between repayment types to compare. No sign-up, no sales pitch, just a useful starting point.
See your estimated monthly repayments and the total cost of a commercial mortgage in seconds.
For illustration only. Figures are estimates based on the inputs above and do not constitute a quote or financial advice. Repayments assume a constant interest rate over the full term; commercial rates are often variable and your actual rate, fees and terms will depend on the lender and your circumstances. Clever Lending is authorised and regulated by the FCA.
When people say “commercial loan” in a property context, they usually mean a commercial mortgage: a loan secured against a commercial or semi-commercial property rather than your home.
There are two broad reasons people take one out. The first is owner-occupier, where you’re borrowing to buy or refinance premises your own business will trade from, such as an office, a shop, a workshop or a warehouse. The second is investment, where you’re buying a commercial or mixed-use property to let out and the rent services the loan.
Either way, the basics this calculator works with are the same: how much you’re borrowing, the rate, the term, and whether you pay the capital down as you go or keep payments low and repay the balance at the end. The detail, and the pricing, is where it pays to have someone in your corner.
It takes about a minute. Here’s what each field means and where the numbers come from.
Property / purchase value
what the property is worth, or what you're paying for it.
Loan to value (LTV):
how much of that value you want to borrow. Commercial lenders typically go up to around 70 to 75%, so your deposit covers the rest. Slide it and watch the deposit update.
Interest rate (annual):
commercial rates are priced per deal and are usually higher than residential mortgages. Pop in a figure to model the payment; we'll help you find the real rate.
Loan term (years)
how long you want to repay over. Commercial terms commonly run from 5 to 25 years.
Repayment type
choose capital and interest to clear the debt over the term, or interest only for lower monthly payments with the balance repaid at the end.
Open Advanced costs and you can add the lender’s arrangement fee. The results show your monthly repayment, the total repayable over the term, the loan and deposit, the total interest, and (on interest only) the balance you’ll still owe at the end.
Say you’re buying premises valued at £500,000 and borrowing 70%, so a £350,000 loan with a £150,000 deposit. On a 20-year term at an illustrative 7.5%:
Lower monthly cost or a clean finish at the end? The calculator lets you see the trade-off instantly, which is exactly the conversation worth having before you commit.
The monthly repayment is only part of the picture. Budget for these too:
Usually 25 to 35% of the property value, since most commercial lending tops out around 70 to 75% LTV.
Often 1 to 2% of the loan, sometimes added to the balance rather than paid up front.
Commercial valuations cost more than residential ones and are paid up front.
You'll usually cover both your own and the lender's legal costs.
Where it applies, it's agreed with you in advance, never a surprise.
Commercial lending is more bespoke than a residential mortgage, and lenders look closely at three things.
Affordability. For an owner-occupier, that means your business accounts: is the trading profit comfortably enough to cover the repayments? For an investment property, it’s the rent, and lenders want it to cover the loan payment with headroom to spare.
The property. Type, condition, location and how easily it could be re-let or sold all feed into the valuation and the LTV they’ll offer.
You and your track record. Trading history, experience and credit profile all matter, and a personal guarantee is often part of the deal. None of this needs to be perfect, but a well-presented case gets a far better reception, which is where a broker earns their keep.
Both have their place, and the right answer depends on what you’re trying to do.
is the steady route. Payments are higher, but every one chips away at the balance, so the debt is gone by the end of the term. It often suits owner-occupiers who want to own their premises outright.
keeps monthly payments low and protects cash flow, which can make sense for investors focused on yield. The catch is that the full loan is still there at the end, so you’ll need a credible exit, whether that’s selling, refinancing or repaying from other funds.
Use the toggle on the calculator to compare the two side by side. If you’re not sure which fits, that’s a good thing to talk through with us.
We’re a specialist property finance brokerage, authorised and regulated by the Financial Conduct Authority. Commercial mortgages are core to what we do, alongside bridging and development finance, so we know which lenders suit which deals and how to present yours well.
What that means for you:
Straightforward, well-structured finance. The kind of clever thinking the name suggests.
Speak to a specialist today. Get a tailored quote or call us on 0800 316 2224. We respond within 24 working hours.
In a property context it usually means a commercial mortgage: a loan secured against business or investment premises rather than a home. It can be used to buy property, refinance existing borrowing, release equity, or fund an investment purchase.
Typically 25 to 35% of the property value, as most commercial lenders go up to around 70 to 75% LTV. Owner-occupier deals can sometimes stretch further, while investment lending is often a little more conservative.
Commercial rates are priced individually rather than advertised, and they're usually higher than residential mortgage rates. They can be fixed or variable, and the figure you're offered depends on the property, the loan size, your business and the strength of the deal.
Commonly 5 to 25 years, and occasionally up to 30. A longer term lowers the monthly payment but increases the total interest you pay.
Yes, and it's common on investment deals because it keeps monthly costs down. The full loan is repayable at the end of the term, so lenders will want to see a credible exit such as a sale or refinance.
Mainly on affordability. For trading businesses that's your profitability; for investments it's whether the rent covers the loan payment with headroom. The property valuation and your deposit then set the maximum loan.
Often, yes, particularly where the borrower is a limited company. It's a normal part of commercial lending, and we'll explain exactly what's being asked before you commit to anything.
Buying trading premises, refinancing an existing commercial mortgage, releasing capital from a property you own, or purchasing a commercial or mixed-use investment. If you're not sure whether your plan fits, ask us.
No. It's an illustration to help you plan. Because commercial rates are bespoke, your actual repayments and costs will depend on the lender and your circumstances. For real figures, speak to our team.
Email us directly with your enquiry by clicking here or using our email [email protected].
