Self Employed Mortgage Calculator
Use this self employed mortgage calculator to estimate how much you could borrow based on your income, and what the monthly payment on that loan would be. Lenders assess self-employed income differently from salaried income, so the calculator uses an income multiple you can adjust, and shows the maximum property price including your deposit.
Calculator
How to use this calculator
- Enter your average annual income. Many lenders average the last two years of accounts or tax returns, so use a realistic average rather than your best year.
- Add any other regular income, your deposit, the interest rate and the term.
- Choose an income multiple (4.5x is a common starting point) and click Calculate to see the maximum borrowing, the maximum property price and the monthly payment.
Worked example: £45,000 of average annual income at 4.5x gives maximum borrowing of £202,500. With a £40,000 deposit, the maximum property price is £242,500, and the repayment payment at 4.75% over 30 years is about £1,057 per month.
Frequently Asked Questions
How do mortgage companies calculate self employed income?
It depends on your business structure. For sole traders, lenders usually look at net profit from tax returns; for limited company directors, they may use salary plus dividends, or retained profit in some cases.
How many years of accounts do I need?
Two to three years is typical, although some lenders will consider one year with a strong explanation. The average is often used rather than the most recent year alone.
Why is the income multiple adjustable here?
Different lenders use different multiples, and the multiple can vary with your deposit size and credit history. Adjusting it shows how sensitive the result is.
Does this calculator guarantee I can borrow this amount?
No. It is an estimate only. Affordability checks, credit history, outgoings and the lender's own criteria all affect the final decision.