Commercial Mortgage Calculator

Welcome to our commercial mortgage calculator. Here you can calculate your monthly payment, total payment amount, and view your amortization schedule. If you have any trouble understanding any of the fields, hover over the field for a description of the value requested. Advanced fields include payment frequency, compound frequency, and payment type. To change these values click on the advanced fields checkbox below. These values default to standard values. Unsure of what interest rate to use for our calculator? Use our commercial loan rates page to help find the rate that best fits your commercial loan. For information on commercial loan payments, please jump down to our commercial loan payment section.

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Payment Summary

Principal + Interest Payment$5,995.51
Number of Payments360
Periodic Interest Rate0.500%
Total Payments$2,158,379.01
Total Interest$1,158,379.01

Commercial Mortgage Payments Graph

Commercial Loan Amortization Schedule

#Scheduled PaymentInterestPrincipalBalance

How to Calculate Monthly Payments for Commercial Loans

Use the formula in the image below to calculate the monthly payment for a commercial loan. If using excel, you can calculate the monthly payment with the following formula: PMT(r, n, P).

Commercial Loan Monthly Payment Formula

A = Monthly payment amount

P = Loan Principal

r = Periodic interest rate

n = Number of loan payments

What is the average rate for a commercial loan?

The interest rate you will receive on a commercial loan will depend on several factors, including the property type, location, leverage, debt service coverage ratio, personal financial strength, and how much of a financial relationship you are willing to establish with the lending institution. For an indication on current interest rates on commercial properties, please visit our commercial loan rates page. For current apartment interest rates, please visit our multifamily rates page.

How long is a typical commercial mortgage?

Typically, the term (or length) of a commercial mortgage can be anywhere from 1-10 years, with limited exceptions for longer terms on self-amortizing loans such as SBA loans (up to 25 years), insurance or Fannie Mae loans (up to 30 years), or FHA loans (up to 35 years for refinance or 40 years for construction to permanent financing). However, the amortization schedule is typically longer than the 1-10 year loan term in order to keep the monthly payments affordable for the borrower.

How is interest calculated on a commercial loan?

This depends heavily on whether or not the loan is interest-only or amortizing. If it is interest only, the monthly interest is the rate divided by the number of periods in a year (i.e. 12), then multiplied by the loan amount. If it is an amortizing loan, the calculations are slightly trickier, and we recommend using a calculator like the one provided on this page.

How much interest will I pay on a commercial loan?

The interest paid on a commercial real estate loan will depend on the interest rate charged, the length of the term, and the amortization schedule. To see the total interest charged over time for any type of commercial loan, visit our calculator on this page and look at the "Total Interest" under the Payment Summary chart after inputting your loan amount, interest rate, and amortization.

How much do you have to put down on a commercial loan?

Your required down payment will ultimately depend on the purchase price, property or business cash flow, and loan program selected. However, you should typically expect to put down at least 10-15% on owner-occupied properties, 20-25% on apartment properties, and 25-30% on other types of investment properties.

How is commercial loan EMI calculated?

An EMI (equated monthly installment) is your monthly mortgage payment on a fixed-interest rate loan (i.e. the payment is the same every month). This can be easily estimated using the mortgage calculator on this page.

What is amortization and do commercial mortgages amortize?

An amortization schedule sets out the timeline for when the principal of the loan will be repaid and how much principal and interest will be included in each of your month mortgage payments. Unless you are on an interest-only loan (only available for construction, bridge, or low-leverage properties on certain loan products), all commercial mortgages amortize.

What are the qualifications for a commercial loan?

This will vary drastically by product, but the following are good rules of thumb regarding personal credit: 1) Net Worth equal to the loan amount being requested 2) Post-Closing Liquidity of at least 10% of the loan amount being requested (after the required down payment), FICO score of at least 680 with no recent negative credit events (i.e. collections, judgments, liens, bankruptcies, short sales, foreclosures, etc.), some (but not all) programs may require experience with similar properties or that you live within driving distance to the property. Various underwriting guidelines for specific products can be found in our loan finder.

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Note: The commercial mortgage calculators displayed in this website should be used as a guideline and do not represent a commitment to lend. Commercial Loan Direct and CLD Financial, LLC are not liable for any calculation errors resulting from the use of these calculators.

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