01
Enter Property Details
Add the estimated commercial property value and the amount you expect to borrow.
Real Estate and Lending
Commercial Loan Calculator
Estimate monthly commercial loan payments, balloon balance, total interest, financing fees, loan-to-value ratio and debt service coverage using your property and loan details.
DSCR and LTV analysis
Commercial property focused
Instant loan estimates
Commercial Financing Details
Enter the property, loan and income information for your commercial financing scenario.
Financing Estimate
Review the estimated debt payment, balloon amount and commercial lending ratios.
Estimated monthly payment
$7,226.11
Principal and interest payment
Balloon payment
$786,498.89
Due after 10 years
DSCR
1.50
NOI ÷ annual debt service
Annual debt service
$86,713.32
Loan-to-value ratio
66.67%
Total interest paid
$653,632.09
Origination fee
$10,000.00
Estimated cash required
$525,000.00
Total loan payments
$1,653,632.09
Down payment amount
$500,000.00
Down payment percentage
33.33%
Total financing cost
$678,632.09
Payments before balloon
120
Principal paid before balloon
$213,501.11
The estimated DSCR is above 1.25, which is commonly
viewed as a stronger debt-service position.
Commercial loan terms, underwriting standards,
interest rates, fees and DSCR requirements vary by
lender, property type and borrower qualifications.
Commercial Financing
What Is a Commercial Loan?
Understand the financing commonly used to purchase, refinance or improve income-producing property.
A commercial loan is financing designed for business and investment properties such as office buildings, retail centres, warehouses, apartment buildings, industrial facilities and mixed-use developments.
Commercial property loans often use an amortization period that is longer than the actual loan term. For example, a lender may calculate payments using a 25-year amortization schedule while requiring the remaining balance to be paid or refinanced after 5 or 10 years.
The remaining balance is known as a balloon payment. Commercial lenders may also evaluate the loan-to-value ratio, property cash flow, debt service coverage ratio, borrower experience and available reserves.
How It Works
How to Use the Commercial Loan Calculator
Evaluate your financing scenario using four simple steps.
02
Set the Loan Terms
Enter the interest rate, amortization period, loan term and preferred payment frequency.
03
Add Income and Fees
Provide annual net operating income, origination fees and other expected closing expenses.
04
Review the Analysis
Compare the periodic payment, balloon balance, DSCR, LTV, interest and cash required.
Lending Metrics
Important Commercial Loan Measurements
These figures help investors and lenders evaluate repayment ability, leverage and financing structure.
Debt Service Coverage Ratio
DSCR compares annual net operating income with annual principal and interest payments. A higher ratio generally indicates more available cash flow.
Loan-to-Value Ratio
LTV compares the loan amount with the commercial property's estimated value and helps measure lender exposure and borrower equity.
Balloon Payment
A balloon payment is the unpaid principal balance remaining when the commercial loan term ends before the full amortization period.
Net Operating Income
NOI represents property income after operating expenses but before mortgage payments, income tax, depreciation and capital expenditures.
Frequently Asked Questions
Commercial Loan Calculator FAQs
Helpful answers about commercial property loans, balloon payments, DSCR and loan structures.
Commercial loan payments are generally calculated using
the principal balance, interest rate, payment frequency
and amortization period. When the loan term is shorter
than the amortization period, a balloon balance remains
due at maturity.
The amortization period determines how the periodic
payment is calculated. The loan term determines when
the agreement matures. A 10-year loan amortized over
25 years normally requires the remaining balance to be
paid or refinanced after 10 years.
Requirements vary, but many commercial lenders look for
a DSCR near or above 1.20 to 1.25. A DSCR of 1.25 means
the property generates approximately 25 percent more
net operating income than the annual debt payment.
No. The payment calculation includes principal and
interest only. Commercial property taxes, insurance,
maintenance, management fees and other operating costs
should normally be considered when estimating NOI and
total ownership expenses.
Estimated cash required includes the difference between
the property value and loan amount, plus the entered
origination fee and other closing costs. Actual lender
reserves and prepaid costs may increase the amount.
Yes. When the loan term is equal to or longer than the
amortization period, the balance can be fully repaid
through scheduled payments. Many commercial loans,
however, mature before the amortization period ends.
No. The calculator provides an educational estimate.
Actual loan offers depend on lender underwriting,
property type, borrower credit, cash flow, experience,
market conditions, appraised value and other factors.
Important: This commercial loan calculator
is provided for general informational and planning purposes
only. It does not constitute a loan offer, approval,
investment recommendation, financial advice, tax advice or
legal advice. Actual terms and costs vary by lender.