Contractor Mortgage Calculator
Use this contractor mortgage calculator to turn your day rate into an annual income figure lenders can understand, then estimate your maximum borrowing and monthly payment. Contractors are often assessed on an annualised day rate rather than accounts, so the calculator shows both the income figure and the borrowing it supports.
Calculator
How to use this calculator
- Enter your day rate, how many days a week you work, and how many weeks a year you work. Holidays and gaps between contracts are the reason weeks are usually below 52.
- Enter your deposit, interest rate, term and an income multiple.
- Click Calculate to see your annualised income, maximum borrowing, maximum property price and monthly payment.
Worked example: a £500 day rate, 5 days a week, 46 weeks a year gives £115,000 of annualised income. At 4.5x that supports £517,500 of borrowing, or a £567,500 property with a £50,000 deposit, with a repayment payment of about £2,700 per month at 4.75% over 30 years.
Frequently Asked Questions
How are mortgages for contractors calculated?
Many lenders annualise the day rate (day rate × days per week × weeks per year) instead of using accounts. Others use limited company salary plus dividends, or an average of recent contracts.
How many weeks a year should I use?
Use the weeks you realistically work, allowing for holidays and gaps between contracts. Lenders commonly use 46 to 48 weeks, not 52.
Do I need a long contracting history?
Some lenders ask for 6 to 12 months of contracting history, while others will consider a new contract with evidence of experience in the same field.
Is the annualised figure guaranteed to be accepted?
No. Each lender has its own method, and some will use a lower figure or average your actual earnings instead.