Commercial Mortgage Calculator

What this calculator does

The Commercial Mortgage Calculator estimates payments for financing used to purchase or refinance commercial property. It provides a base amortization estimate for comparing principal, rate, term, and amortization assumptions.

How to use the calculator step by step

Enter the commercial loan amount, interest rate, amortization period, and any separate loan term requested. Pay attention when the contractual term is shorter than the amortization schedule because a balloon balance may remain due.

How the calculation works

Commercial mortgage payments can be calculated using an amortization schedule similar to other installment loans. When the loan term ends before the amortization period, the remaining principal becomes a balloon balance.

Worked example and scenario testing

A commercial loan might amortize over 25 years but mature after 10 years. Monthly payments are calculated on the 25-year schedule, yet a substantial unpaid balance can still remain when the 10-year term ends.

How to interpret your result

The periodic payment is only one part of evaluating commercial financing. Balloon risk, fees, property cash flow, debt-service coverage, and refinance conditions can be equally important.

Accuracy, assumptions, and limitations

Commercial loans may include variable rates, interest-only periods, balloon payments, lender fees, covenants, appraisal expenses, and other conditions not represented by a standard calculator.

Common mistakes to avoid

Do not assume loan term and amortization period are always identical. Ignoring a balloon payment can substantially understate the amount due at maturity.

Privacy and browser-based calculations

Use general financing figures only. Do not enter business bank credentials, tax IDs, tenant information, or confidential loan documents.

Frequently asked questions