Care home mortgage calculator
This care home mortgage calculator will estimate the loan, the monthly payments and how far the home's profits cover them, from your own figures. The calculator is coming soon; the guide below explains each input.
Reviewed by David Sampson, Founder & Director · Created 20 October 2026 · Last reviewed 20 October 2026
What will the care home calculator show?
A care home mortgage calculator estimates the loan, the monthly payment and how comfortably the home's profits cover that payment. Enter the purchase price, the deposit, the interest rate, the term and the home's yearly earnings before interest, tax, depreciation and amortisation, and the result shows the payment and the cover left over.
Every figure will be an input, so the result reflects the numbers entered rather than market data. It is a planning estimate, not a quote or a lending decision. How care home lending works is explained in the care home finance section.
The inputs explained
The loan is the purchase price less the deposit. The rate should come from a quote, and the term is the number of years over which the loan is repaid. The earnings figure should come from the home's accounts, adjusted for any costs the new owner will carry differently, such as management or rent.
Lenders test that the earnings cover the yearly loan payments by a margin they set themselves, so the cover figure shows how much room the home has. Lenders use their own valuation and their own view of the earnings, so their figures may differ from those entered.
Fees for arrangement, valuation and legal work can be entered separately. Pricing across care home lending is explained on the care home mortgage rates page.
Using the result
The result helps set a budget and test a purchase before speaking to a lender. Testing a higher rate, a shorter term or lower occupancy shows how sensitive the cover is to change. Stamp duty, legal fees and working capital for the first months are not included and need adding.
Until the calculator is live, the same sums can be worked out by hand. The yearly payment on a repayment loan comes from the loan, rate and term, and the cover is the earnings divided by that payment. A broker can quote current pricing for a specific home.
Frequently asked questions
How do I work out a care home mortgage?
Set the loan, rate and term, then compare the yearly payments with the home's earnings.
Is the care home calculator live?
Not yet. The calculator is coming soon. The guide on this page explains how each input works.
What is interest cover?
How many times the home's earnings cover the yearly interest or loan payments.
What earnings figure should I use?
The home's earnings before interest, tax, depreciation and amortisation from its accounts.
Does the result include stamp duty?
No. Stamp duty and legal fees are extra costs to add.
Is the result a loan offer?
No. It is an estimate from the figures entered. Only a lender can make an offer.
Important: Your home may be repossessed if you do not keep up repayments on your mortgage. Information on this page is for general guidance only and does not constitute financial advice.Always verify details directly and seek independent advice before making financial decisions.