Commercial Mortgage Calculator 

Taking on a commercial mortgage may seem like an intimidating task. The reality is that there's no shortcut to getting the commercial real estate financing you need. That said, the experts at, Inc. strongly believe that having the right knowledge and tools puts you in the best possible position to get the financing you deserve.

One such tool is our commercial mortgage calculator, which can estimate the monthly payments owed on a commercial mortgage. All you have to do is input the loan amount and interest rate, then set the amortization and term length to see the monthly payment figure over time. Note that the monthly payment shown includes only principal and interest. Depending on the lender involved, the financing may have included escrow for taxes, replacement reserves, etc. These figures should also be considered to get a more accurate estimation of the expected monthly payment. Many prospective borrowers use this helpful tool while shopping around for commercial properties in order to determine what lies within their price range. It can also be an invaluable tool when refinancing an existing commercial property loan. The included amortization schedule depicts the amortization over the selected term, which is often an overlooked aspect in calculating monthly payments. In some cases, the amortization impacts the monthly payment moreso than the actual interest rate! 

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


P & I Payment


Interest Only Payment


Balloon Payment Amount
View Amortization Schedule
Month Payment Principal Interest Balance

Our commercial mortgage calculator will help you calculate:

  • Principal and Interest (P&I) payments

  • Interest only payments

  • And balloon payments

The principal is the loan amount you will be applying for. How much it is depends on what your current finances and future business prospects can handle. Taken into consideration on the principal amount will be how much revenue the property will yield (Net Operating Income) and how much your total assets cover in relation to your total debt (Loan To Value) among other factors. The industry median interest rate for commercial mortgages is approximately 3% above the federal rate. The amount of interest that will be charged specifically to your loan will largely be determined by your credit score. Multifamily.Loans Inc will give you access to the industry’s best loan rates no matter the property type, location or size.

A balloon payment schedule involves the borrower paying off the loan in small amounts with a large (balloon) payments during the loan term. Balloon payments can be a heavy shock to your finances, so the team at Multifamily.Loans will ensure that your cash flow is prepared to handle balloon payments with ease throughout your loan term. The loan term is the duration of time that you will have to pay off the loan. Loan terms for commercial property is usually about 15-30 years. The loan term will affect whether your installments are big or small but they also affect how much you would have paid off at the end of the loan.

We've gone ahead and gathered some useful terms and definitions to help you on your way to acquiring the right commercial real estate loan to suit your needs:


commercial property

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 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: a term used to describe 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 exhibits 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 refers to the original sum of money borrowed from a lender while Interest can simply be described as 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. 

For a More Accurate Estimate, Please Feel Free to Fill Out the Form Below for a Risk Free Consultation with One of Our Commercial Mortgage Professionals.