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Commercial Mortgage Calculator

Figuring out the monthly payments on a commercial real estate loan has never been more simple.

Undertaking a commercial mortgage is a serious investment. The experts at Commercial Real Estate Loans. understand very well that there's no shortcut to getting commercial real estate financing. With that in mind, we strongly believe that having the right tools and know-how gives you an incredible advantage towards acquiring the financing you deserve.

The most useful tool, in our humble opinion, is our commercial mortgage calculator, which determines estimated monthly payments for a commercial mortgage at any given rate. Start off by inputting the loan amount and interest rate. Once those are entered, set the amortization and term length to see the monthly payment figure over time.

It’s important to keep in mind that the commercial mortgage calculator only shows the principal and interest portion of your monthly payment. Some lenders may require additional fees that could be worked into the monthly payment. These figures should also be considered when viewing the calculator's results to get a more accurate estimation of the monthly payment. The calculator comes equipped with an amortization schedule that details the amortization over the length of the loan term. 

The commercial mortgage calculator can be a helpful tool for prospective borrowers to use while shopping around for commercial properties. It can help them better understand which loans fit within their budget. It’s also an invaluable tool for refinancing an existing commercial property loan. Get started by entering the loan details into the calculator below! 

Loan Amount
Interest Rate
Amortization (years)
Term (years)


P & I Payment


Interest Only Payment


Balloon Payment Amount
View Amortization Schedule
Month Payment Principle Interest Balance

Understanding the Commercial Mortgage Calculator

Our Calculator will help to determine the estimated principal, interest, and amortization for any given loan amount and rate. The principal is the amount of money you are borrowing from the lender. The principal amount you can borrow depends on what your current finances and future business prospects can handle, as determined by the lender. Some factors lenders use to determine how much they can lend a borrower are the projected revenue the property will yield (Net Operating Income, or NOI) and how much your total assets cover in relation to your total debt (Loan To Value, or LTV).

The industry median interest rate for commercial real estate loans is approximately 3% above the federal rate. The amount of interest that you will be required to pay for the life of the loan term is typically determined by your credit score. The loan term is the duration of time that you have to pay off the principal and interest of the loan. Loan terms for commercial properties are usually about 15-30 years. The length of the loan term affects the size of your monthly installments, as well as how much you would have paid off at the end of the loan (your balloon payment).

Commonly associated with amortized loans are balloon payments. Balloon payments involve the borrower paying off the principal with decreasing interest amounts, leaving a large (balloon) payment of mostly principal towards the end of the loan term. Balloon payments should always be planned for, as they can deal quite a blow to your finances if not budgeted for. That's why consulting with the team at Commercial Real Estate Loans. works to your advantage. Our commercial mortgage experts will ensure that your cash flow is prepared to handle balloon payments with ease throughout your loan term before you sign any contracts.

Through Commercial Real Estate Loans., you can be confident that we will provide you access to the industry’s best loan rates no matter the property type, location or size!

Helpful Commercial Mortgage Calculator Terms and Definitions

Amortization: A method of paying off a debt using a fixed repayment schedule agreed between the borrower and the lender. With amortization, payments consisting of both principal and interest (as specified in the loan agreement) are paid off over a set period of time. The structure typically involves a declining payment of interest, where more interest is paid (in comparison to principal) towards the beginning of the repayment and gradually decreases over time, allowing more principal to be paid towards the end of the loan term.

Balloon Payment: The large payment sum due towards the end of a commercial or amortized loan. Balloon payments usually occur for loans with short loan terms, and when only a portion of the principal is amortized.

Collateral: Assets or Property of value introduced to the lender as assurance of worth in order to secure the loan. If a situation arises where the borrower stops making payments towards the debt (whether intentionally or due to unforeseen circumstance), the lender can seize the collateral in order to cover their loss. These claims to collateral assets by lenders are known as liens. When the loan amount is paid in full, the assets are no longer deemed as collateral. Typically, Loans secured by collateral tend to have lower interest rates. 

Debt Service Coverage Ratio (DSCR): Simply, DSCR is a way to quantify the borrower’s ability to pay back outstanding debt obligations. A borrower's "debt service" is the cash flow required to cover a standard payment of principal and interest on a debt within a payment period. The borrower's net operating income is also required to determine the debt service coverage ratio. The formula to determine DSCR is Net Operating income / Total Debt Service. If the resulting value is greater than one, it shows the borrower is capable of repaying their debt. Conversely, a value less than one would mean an inability to cover the debt service.

Loan To Value Ratio (LTV): A figure that represents the ratio of a debt in relation to the value of the collateral involved. The LTV is used by lenders in order to quantify borrower leverage, as well as determine the level of risk involved in lending the specified sum. The formula for LTV is Loan Amount / Total Value (of Collateral).

Maturity Date: Denotes the date that the final principal payment on a loan is to be paid. The maturity date is often viewed as the "lifespan" of a loan.  Once the last principal payment is met, interest payments also cease, and the debt is considered fulfilled. 

Prime Rate: This standard of comparison for interest rates offered by lenders is essentially the interest rate given to a lender's most creditworthy clients. Also known as the prime lending rate, it is based on the verifiable assumption that these larger commercial borrowers have a much lower risk of defaulting on a payment.

Principal and Interest (P&I): Payments on debts are typically broken down into two basic units. The first is known as "Principal". Principal is the original sum of money borrowed from a lender while Interest can is an amount derived as a percentage of the principal that acts as the fee for borrowing from the lender.

Refinance: When a borrower meets with a lender to revise any previous payment schedule on a loan. When a debt is refinanced, the original loan is considered "paid off" and replaced with the newly revised pay schedule which is viewed as a new loan altogether. 

Questions? Fill out the form below to speak with a commercial mortgage banker.

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