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    Commercial Loan Payment and Amortization Calculator

    Estimate principal and interest payments for a commercial loan or mortgage from a proposed amount, rate, and amortization period. Review annual debt service and the full schedule.

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    Enter a proposed loan amount, rate, and amortization length to estimate scheduled principal and interest. Amortization sets the payment schedule, while contractual maturity sets when the note comes due. If the note matures first, the remaining principal is a balloon balance separate from the monthly payment.

    $
    %

    Monthly Payment

    $7,389.91

    Annual Debt Service

    $88,678.94

    Total Interest

    $1,216,973.53

    Hypothetical maturity check: If this loan had a 10 year contractual maturity, the balance after the scheduled payments would be $797,175.11. This illustration uses your current loan amount, rate, amortization, and interest only inputs. The assumed maturity is for comparison only, not a term quote. The balloon is due separately from the monthly payment if the signed note requires it.

    This estimate covers scheduled principal and interest, not taxes, insurance, fees, or the payoff terms in a loan agreement. Use the schedule to compare the balance decline at the same loan amount and rate, then confirm the proposed maturity date with the lender.

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    Estimate the Monthly Commercial Loan Payment

    Enter the proposed principal, annual rate, amortization length, and any interest only period. The calculator estimates principal and interest, annual debt service, total interest, and a month by month balance schedule. It does not add taxes, insurance, lender charges, reserves, or changing construction draws. Use the result as a commercial mortgage estimate, not a term sheet.

    Monthly Payment = P × r × (1 + r)^n / ((1 + r)^n - 1)
    P = loan amount, r = monthly rate, n = number of monthly payments

    Amortization Length Is Not Contractual Maturity

    Amortization length sets the schedule used to calculate each monthly payment. Contractual maturity is the date the note comes due. A loan can use a long amortization schedule and mature earlier, so scheduled payments do not necessarily repay all principal before maturity. The unpaid balance then becomes due as a balloon, subject to the signed loan documents.

    The monthly payment is the scheduled amount during the payment period. A balloon balance is separate principal still owed on the maturity date, not an extra amount included in each monthly payment. Use the amortization table to inspect how principal declines, then test the property's coverage with our DSCR calculator.

    Compare Payments at Equal Assumptions

    When comparing amortization lengths, keep the loan amount and rate unchanged. A longer schedule spreads principal repayment across more monthly payments, lowering the scheduled payment while leaving more principal outstanding at an earlier maturity. The comparison is only useful when those assumptions stay equal.

    If you enter an interest only period, the calculator shows the interest payment first and the later amortizing payment separately. Principal does not decline during the interest only months. For a commercial mortgage or a bridge loan, confirm the contractual maturity, extension options, and payoff language with the lender.

    Frequently Asked Questions

    Apply the standard amortization formula to the loan amount, interest rate, and amortization period. The calculator estimates principal and interest, annual debt service, and total interest from the assumptions you enter.

    Yes. Use it to estimate principal and interest payments for a commercial real estate loan when you know the loan amount, rate, amortization period, and any interest only period. It provides a payment estimate and amortization schedule, not a loan approval or property valuation.

    Yes. Select Show Amortization Schedule after entering your loan details to see each month's payment, principal, interest, and remaining balance. This commercial loan amortization calculator supports amortization periods from 1 to 40 years.

    Yes. This commercial mortgage calculator and commercial mortgage payment calculator estimate principal and interest payments for a proposed commercial mortgage. It does not include property taxes, insurance, fees, reserves, or other costs outside the loan payment.

    Use this commercial construction loan calculator to estimate a payment once you know the proposed loan amount, rate, and repayment structure. It can model an interest only period, but it does not calculate construction draws, interest reserves, lender fees, or changing loan balances during construction.

    No. Enter a rate you have been quoted or test a range of possible rates. Actual commercial loan rates depend on the property type, leverage, term, borrower strength, market, and lender.

    Amortization length determines the payment schedule. Contractual maturity is when the note comes due. If maturity occurs before the scheduled amortization ends, the remaining principal is due as a balloon balance.

    A balloon is the principal balance still owed when the loan reaches contractual maturity before the amortization schedule finishes. It is separate from the scheduled monthly payment and must be addressed at maturity under the loan documents.

    During an interest only period, scheduled payments cover interest and do not reduce principal. The calculator shows the interest payment and the later amortizing payment based on your entered assumptions.

    Rates vary by lender, property type, leverage, and borrower strength, so run a range around current market levels rather than a single number. Bank and conventional CRE loans generally price lower than bridge or private money, and the spread between programs can be several percentage points.

    No. It models principal and interest only. Commercial loans also involve closing costs, origination fees, and in some cases reserves or escrows, so your total cost of borrowing will be higher than the payment alone.