Calculate commercial loan payments with balloon, interest-only, and amortization options. Includes SBA 7(a), 504, CMBS, and bridge loan calculators with DSCR analysis.
Conventional
Traditional bank commercial mortgage
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Our commercial loan calculator helps you estimate monthly payments for commercial real estate loans. Calculate payments for SBA 7(a), SBA 504, conventional commercial mortgages, CMBS/conduit loans, bridge loans, and hard money loans. Factor in balloon payments, interest-only periods, and see how your Debt Service Coverage Ratio (DSCR) and Loan-to-Value (LTV) affect your loan qualification.
Commercial loans are used to finance business real estate, equipment, or working capital. Unlike residential mortgages, commercial loans typically have shorter terms (5-25 years), higher interest rates, and may include balloon payments where the remaining balance is due at the end of the term. Lenders evaluate commercial loans based on the property's income potential using metrics like DSCR (Debt Service Coverage Ratio) and LTV (Loan-to-Value ratio).
Commercial Loan Payment Formula
PMT = P × [r(1+r)^n] / [(1+r)^n - 1]Instantly compare SBA loans, conventional financing, CMBS, bridge loans, and hard money options to find the best fit for your investment.
See exactly what your balloon payment will be when the loan term is shorter than the amortization period—critical for planning refinancing or exit strategies.
Enter your property's Net Operating Income (NOI) to instantly see if your DSCR meets lender requirements for loan approval.
Calculate payments during interest-only periods common in bridge loans and construction financing to understand your cash flow needs.
Calculate financing for office buildings, retail centers, warehouses, or multifamily properties with various loan options.
Determine if your business qualifies for SBA 7(a) or 504 loans with lower down payments and competitive rates.
Plan short-term financing for acquisitions, renovations, or repositioning before securing permanent financing.
Compare current loan terms to refinancing options to see potential savings or better cash flow.
Most lenders require a minimum DSCR of 1.20 to 1.25, meaning the property's NOI should be 20-25% higher than the annual debt service. SBA loans may accept 1.15, while some conventional lenders prefer 1.30 or higher for lower-risk loans.
The loan term is how long until the loan matures (often 5-10 years for commercial), while amortization period (often 20-30 years) determines the payment schedule. If the term is shorter than amortization, you'll have a balloon payment at the end.
Down payment requirements vary by loan type: SBA 7(a) and 504 loans typically require 10-20%, conventional loans need 20-30%, and hard money lenders may require 30-40%. Higher down payments often result in better rates.
A balloon payment is the remaining loan balance due at the end of the loan term when the term is shorter than the amortization period. For example, a 10-year term with 25-year amortization means you'll owe the remaining balance after 10 years of payments.
SBA 7(a) loans are more flexible and can be used for various purposes including working capital. SBA 504 loans offer lower rates and are specifically for major fixed assets like real estate or equipment. 504 loans require a CDC partnership and typically have more requirements but better terms for qualifying projects.
Most commercial lenders require a minimum credit score of 680, though some SBA lenders may consider 660. Conventional commercial loans often prefer 700+, while hard money lenders focus more on collateral value than credit scores.