Result
How to use this calculator
Enter the loan amount, annual interest rate, and amortization period in years. The calculator returns the monthly principal-and-interest payment, total interest over the term, and the implied total of payments.
The formula
M = L × r(1+r)^n ÷ ((1+r)^n − 1), with L = loan amount, r = annual rate ÷ 12, and n = years × 12 payments.
Commercial loans run shorter than you think
Many commercial mortgages amortize over 20–30 years but mature in 5–10 years with a balloon payment. Check your loan's balloon terms — this calculator shows the amortized payment, not the balloon amount.
FAQ
How long do commercial mortgages amortize?
Commonly 20-30 years amortization with a 5-10 year maturity that ends in a balloon payment. Always check the balloon terms alongside the monthly payment.
What down payment do commercial lenders require?
Typically 20-30% of the purchase price; owner-occupied properties with strong cash flow may qualify for less, while investment properties often need more.
What is DSCR?
Debt Service Coverage Ratio: the property's net operating income divided by the annual debt service. Most lenders want 1.20x or higher.
Are operating costs included in the payment?
No. Taxes, insurance, maintenance, and triple-net (NNN) obligations are separate. This calculator covers principal and interest only.