Retained profit calculator
Most lenders will only count the salary and dividends you draw — a figure your accountant deliberately keeps small. A select group count your share of the profit left in the company. This shows you the gap between the two.
Why does the gap exist?
Because tax efficiency and mortgage affordability pull in opposite directions. Your accountant keeps your drawn salary and dividends low, which is correct for tax — but a lender reading only that figure concludes you're a modest earner, however profitable your company is. A lender that counts retained profit sees what the business actually earns.
This is the single biggest reason capable company directors are told they can't borrow enough. It isn't a judgement about your business. It's a lender looking at the wrong number. The full explanation is in retained profit mortgages.
What the calculator is doing
It compares two assessment bases side by side. The first — salary plus dividends — is what most lenders use. The second — salary plus your share of net profit — is what a retained-profit lender uses. Both are then multiplied by an income multiple to show indicative borrowing.
The gap between the two figures is the borrowing you may be leaving on the table by being with the wrong lender.
Important caveats
Only a select group of lenders assess on this basis, and each applies its own criteria — how it treats profit, what multiples it uses, how much trading history it requires. Some blend the approaches. And the basis is only powerful if you genuinely retain profit: if you draw most of what the company earns, the two figures converge.
If you've recently incorporated, see remortgaging after going limited. If your trading history is short, one year of accounts sets out the routes.
Retained profit, explained
What is a retained profit mortgage?+
It's a mortgage where the lender assesses a company director on salary plus their share of the company's retained (post-tax) profit, rather than only on the salary and dividends drawn personally. Because tax-efficient directors deliberately draw little, this basis usually reflects their true earnings far better — and supports substantially more borrowing.
Why do most lenders lend directors so little?+
Because they assess you on the salary and dividends you actually draw. Directors keep those low for tax efficiency, so the figure on your personal tax return understates what your business earns. A lender working from that number sees a modest earner, regardless of the profit sitting in the company.
Which lenders count retained profit?+
Only a select group, and each applies its own criteria — how it treats profit, what multiples it uses, and how much trading history it wants. That's precisely why lender choice is decisive here: the same director can be quoted dramatically different figures depending on who assesses them.
Is retained profit always the better basis?+
Not always. If you draw most of what the company earns, the two bases produce similar figures. The retained-profit route matters most when significant profit is deliberately left in the company — which is exactly the position many contractors and consultants are in.