Commercial mortgage calculator.
Model any commercial loan: monthly principal & interest, total interest, the balloon payoff at term, and a year-by-year amortization schedule. Commercial loans rarely fully amortize — see what you'll actually owe when the loan comes due.
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Payment is the easy part.
What decides your deal is the proceeds the lender will actually advance and the terms attached. Send me the property and I'll point you at lenders quoting that asset type today.
Estimates are for planning only and use simplified assumptions — not tax, legal, or investment advice. Verify with your lender, CPA, and a full broker analysis before acting.
The payment is not the constraint
Working out a payment is straightforward. What decides whether a commercial deal happens is the proceeds a lender will actually advance, and that is set by the lowest of three tests rather than by what you can afford.
Loan-to-value, debt service coverage and debt yield are each computed on the lender's own normalized income — with a vacancy factor, a market management fee and a replacement reserve inserted whether or not they appear in your books. That adjustment is routinely 10–20% of NOI, and it flows straight through to the loan size.
How commercial debt differs from residential
Shorter terms with longer amortisation is the standard shape: a five- or ten-year term amortised over twenty-five, which leaves a balloon to refinance or repay. Prepayment is frequently restricted through yield maintenance or defeasance, which can make an early sale expensive in a way residential borrowers never encounter.
Personal guarantees are common on smaller deals and are negotiable in scope even when they are not negotiable in principle. SBA 504 and 7(a) programs exist for owner-occupiers and change the equity requirement materially, but they add time and conditions.
I am a broker, not a lender. What I can do is tell you which lenders are actively quoting your asset type and size this quarter, which is usually the faster route than applying blind.
Common questions
How is a commercial mortgage different from a residential one?
Shorter terms with longer amortisation leaving a balloon, sizing driven by property income rather than personal income, prepayment restrictions such as yield maintenance or defeasance, and personal guarantees on smaller deals.
What determines how much I can borrow?
The lowest of loan-to-value, debt service coverage and debt yield, all computed on the lender's normalized NOI rather than your operating statement. Which test binds moves with interest rates and asset type.
What is a balloon payment?
The unpaid balance due at the end of the term, because the loan amortises over a longer period than the term runs. It must be refinanced or repaid, which is a real risk if credit has tightened by then.
How is a commercial mortgage payment calculated?
The monthly principal-and-interest payment uses the standard amortization formula: payment = P·i / (1 − (1+i)^−n), where P is the loan amount, i is the monthly interest rate (annual rate ÷ 12), and n is the number of months in the amortization period. This calculator also computes the balloon balance owed if the loan term is shorter than the amortization.
What is a balloon payment on a commercial loan?
Most commercial loans amortize over 20–30 years but mature (come due) in 5, 7, or 10 years. You make the lower amortized payment, then must refinance or pay off the remaining balance — the balloon — at maturity. This tool shows that payoff amount for common terms.
Does this include taxes, insurance, or NNN?
No — it calculates principal and interest only. Property taxes, insurance, and NNN/CAM charges are separate. Use the lease or occupancy-cost tools for the all-in number, or ask Justin for a full breakdown.
Tools: deal analyzer · DSCR · IRR · all calculators · Justin Crow, South Florida commercial broker