Hotel mortgage calculator
This hotel mortgage calculator will estimate monthly repayments and profit cover on a hotel, guest house or B&B 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 hotel mortgage calculator show?
A hotel mortgage calculator estimates the monthly repayment and total interest on a loan for a hotel, guest house or B&B. Enter the price, deposit, interest rate and term, then the business's yearly profit before interest, to see how far the profit covers the interest, which is how lenders begin their own test.
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 hospitality lending works is explained in the hotel finance section.
The inputs explained
The loan is the price less the deposit. The rate should come from a quote or illustration, and the term is the number of years agreed with the lender. Repayment loans reduce the balance over the term, while interest-only loans keep it the same and need a plan to repay the loan at the end.
The profit figure should come from the trading accounts, before interest and owner's drawings. Lenders use their own view of sustainable trade, so their figure may differ from the one entered.
The term affects both the monthly payment and the total cost. A longer term lowers the payment but increases the interest paid overall. Pricing for hospitality lending is explained on the hotel mortgage rates page.
Using the result
The result helps set a budget and compare options before speaking to a lender. Testing a higher rate or a quieter year shows how sensitive the loan is to change. Valuation, legal fees, stamp duty and stock are not included and need to be added to see the full cost of buying.
Until the calculator is live, the same sums can be worked out by hand. Interest-only cost is the loan multiplied by the annual rate, and profit cover is the yearly profit divided by that cost. A broker can quote current pricing for a specific case.
Frequently asked questions
How do I calculate a hotel mortgage repayment?
For interest-only, multiply the loan by the annual rate and divide by twelve. A repayment loan costs more each month because part of each payment reduces the balance.
Is the hotel mortgage calculator live?
Not yet. The calculator is coming soon. The guide on this page explains how each input works.
Can I use it for a guest house?
Yes. The same inputs work for a guest house or B&B.
What profit figure should I use?
The yearly profit before interest, taken from the trading accounts.
Does the result include fees?
No. Valuation, legal fees and stamp duty are extra costs to add.
Is the result a mortgage 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.